Sunday, November 21, 2010

Buffett and Raising Taxes

Buffett has been saying for the last 2 years that the government should raise taxes on high net worth individuals and lower taxes on the lower, middle and upper middle class.  While I'm not in the game of guessing what anyone else is doing and why and I haven't been paying much attention to Buffett (even though I own a few shares of Berkshire) I finally figured that Buffett is angling to get more money to his customers.  The rich don't buy Fruit of the Loom, Dilly Bars and import goods that travel on railroads, the lower, middle and upper middle class are the aggregate spenders.

So if Buffet can take 5% out of the upper 2%'s pie and redistribute it to the other 300,000,000 this country would really sell a ton of consumer goods.  In the end probably everyone connected to any consumer goods would benefit (I have a sizable position in a furniture import company so I'd like to test the theory).  This might even help some companies that need some Chicago private equity.

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