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Originally Posted by Cowperson
Nice of him to offer OPM - Other People's Money - to the cause. Would it make any difference? This author says no.
. . . . . doubling the tax rate on Mr. Buffett’s fellow billionaires, America’s 400 wealthiest households, would raise enough money to run the federal government for only two days.
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Buffet's solution wasn't to double the taxes on the richest 400 households however.
Quote:
Originally Posted by Cowperson
Mmmmmmm . . . . . the S & P 500 was about 92 in 1976 and its about 1,200 as an index today. Would it be at that level if capital gains rates were still 39.9%? One could easily argue it wouldn't be . . . . .
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The S&P had negative returns over the 2000 - 2010 period. Could an equally effective argument be made that the returns would've been better had the rates been back at 39.9%?
Also, the returns over the 30 years from 1950 - 1980 are still robust, and not nearly so volatile as the returns from 1980 - 2010. The important difference is that real average incomes increased far greater for the average American in the earlier period and increased far greater for wealthier americans in the latter. Which leads to a healthier nation?
Quote:
Originally Posted by Cowperson
The fact the S&P 500 is at 1,200 has created wealth for the common man as well as the super wealthy. Stock ownership in Canada and the USA was probably less than 20% of the population in the 1970's and would be between 50% and 60% today, including mutual funds.
Cowperson
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I would disagree that this has lead to increased wealth for the common man as the track record of capital gains for the average retail investor is abysmal.
Opening up of the capital markets to the common man has only created wealth for the brokerages (and I work at one). Prior to this, the common man received the benefit of the markets through defined benefit pensions.
Quote:
Originally Posted by VladtheImpaler
Buffett is a jerk.  I was just going to post the same thing as Cow (but less eloquently). It's nice of him to offer other people's money, when he is almost dead and has more money than he knows what do with. I don't recall him making this offer 30 years ago. |
He didn't need to 30 years ago because the tax system was much different then than it is today.
In Mr. Buffet's opinion the changes made since then have been far more beneficial to the wealthy (as they have the lobbying power) than it has been for the 'common man'.