The controversial Warren Buffett tax can improve the nation’s budget to some extent if those to whom it applies will support it. So far, millionaires don’t feel driven enough to help the budget by paying more taxes. However, a recent study shows that millionaires would agree to back up the Buffett tax on one condition: if it applies only to those extremely rich.
Bloomberg writes that according to a survey released earlier this week, “millionaires support Warren Buffett’s view that the wealthiest should pay more in taxes, as long as it’s other rich Americans”.
As stated by a survey from PNC Wealth Management, unit of PNC Financial Services Group Inc. in Pittsburgh, about 71 percent of millionaires interviewed say they agree with Buffett and would stand by his proposal to have the very wealthy pay more taxes and give more to charity.
The survey also showed that 41 percent of those polled say they are going to change their investment strategy if the taxes increase. At the same time, 24 percent say they would give less to charity in the same scenario. However, 70 percent say they will give more to charity or keep giving the same amount as now, while only 22 percent would reduce their donations.
Out of the 71 percent, 49 percent consider they are “not in the same league” Buffett is. And his league is big. Warren Buffett, the chairman and chief executive officer of Berkshire Hathaway Inc., is at age 81 the world’s third richest person, based on an analysis by Forbes magazine.
R. Bruce Bickel, senior vice president of PNC Wealth Management, declared: “When we compare ourselves to somebody else, we always think that they should do more (…) I don’t consider myself the ultra-wealthy, when I compare myself to a Buffett”.
Last year, Warren Buffett’s proposal to make millionaires pay more taxes than the average Joe, generated a series of debates, not to mention that the rich did not take the news easy. Senate Minority Leader Mitch McConnell said several months ago: “If he’s feeling guilty about it, I think he should send in a check”, referring to the tax proposal.