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Should we increase taxes on the rich?
Posted: 08.17.2011 at 7:37 PM
Updated: 08.18.2011 at 4:40 AM
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Warren Buffett comments challenge Congress

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MARQUETTE -- "Tax me please."

That's not something you'd expect to hear from anyone.  However, that's the message from one of the world's richest men this week.  Taxing the rich was voted as the topic of Wednesday's Facebook story of the day.

Warren Buffett has a net worth of about $50 billion, but only pays about 17 percent of his income to taxes.  He says it's time for Congress to stop coddling the "super rich."  Others say putting more taxes on the rich will just make our economic climate worse.

The U.S. budget deficit has topped one trillion for the third straight year.  The message is clear:  the country needs a plan to increase revenue and cut its spending.

Some, like billionaire Warren Buffett, say it's time to close tax loopholes and increase taxes on the nation's wealthiest.

But how do people like Buffett pay a smaller percentage of taxes than others?

"He has a number of people employed to figure out the tax code, and they will strategically put those assets into tax protected areas, almost loopholes," says Sam M. Cohodas Northern Michigan University Professor Tawni Ferrarini.  "They're legal, but it's a way to shelter yourself from paying taxes."

Facebook viewer Anthony Ike Lacono writes:  "All men are equal, so why aren't we taxed equally?  The working man is the backbone of our country and we deserve a break.  Tax the rich man and tax him good!"

Others say it's not that easy.

"The wealthy can choose to move and they will move their assets very quickly," Ferrarini says, "especially with this electronic digital age, into those places where taxes are low." 

That could result in more outsourcing or even elimination of jobs, goods and services.

Ferriani says the Upper Peninsula is like everywhere else; taxing the wealthy more here could hit Main Street economies.

Facebook viewer Kelly E. Zoellner writes:  "Think about it.  If you tax the people who employ us at a higher rate, then what will they do?  Cut more jobs."

Warren Buffett claims that raising taxes on people like him actually 'will not' hurt investments as many fear.  He claims he's not aware of any investment deals that have been turned down because of tax rates.

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