After I posted about James’s The 10 Dopiest Business and Economy Leaders of 2008 where I gave Warren Buffett an honorary mention, he did me the honor of posting on why Buffett. Thank you James!

The reason I’m picking on Buffett is that even when Berkshire Hathaway paid (at least according to Forbes) 2.5% of all taxes collected in 2003 while making only 1.2% of total corporate income that year, and the top 25% of all taxpayers currently pay 86% of all taxes, last May he famously called for an increase on both business taxes and on even more progressive personal taxes. While one may argue that “that was last May”, Buffett has been calling for this for years now, and I haven’t heard him change his mind now that we’re into a recession. The most he’s said recently is that Congress won’t be raising taxes for now, but eventually it’ll have to and “this would “be no disaster,” and that it “wouldn’t change most peoples’ lives.”

“It will be no disaster if tax rates are higher five years from now,” Buffett said, “and, in effect, I still think they’re going to have to be.”
He suggested that it would “not have a big impact on investment at all, if tax rates are changed. He said that tax rates on dividends, capital gains and retirement accounts called 401(k)s were examples of low tax rates.

When Buffett talks, policymakers listen. Until I hear him push for less government spending instead of higher taxes, I give him an honorary mention.

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James Pethokoukis, who was my podcast guest on Monday, has the list of The 10 Dopiest Business and Economy Leaders of 2008. Topping the list? Madoff, who made off with billion$:

1) Bernard Madoff. If the federal government’s accusations prove correct, Madoff also belongs on a list of America’s most active and energetic senior citizens. The 70-year-old money manager was arrested by the FBI for allegedly running the largest Ponzi scheme this side of Social Security, losing an estimated $50 billion in client money. Investigators say Madoff told them that his business was just “one big lie.” Terrible news for numerous wealthy individuals, banks, and charitable foundations. A perfect way to cap off a perfectly terrible year on Wall Street.

I would give Warren Buffet an honorable mention for his call for higher income taxes at the corporate level and more progressive income taxes at the personal level. Luckily no one’s acted on it yet, but time will tell. There are enough fools out there to want to raise taxes during a recession.

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