About a week before Mr. Buffett wrote his much discussed New York Times op/ed piece, Stop Coddling the Super-Rich, Ken Langone offered to pay more taxes, too, with the stipulation that the money go toward debt reduction. Quite a few people have pointed out that both men could simply write checks to the government for the amount they believe would be fair to pay (not sure if Mr. Langone can specify how his money should be used; if he can, I have some ideas about how to use my pitiable contribution). Still, I understand both men want to reform the system, not personally fund it. I agree with them that the super rich could certainly pay more (I’m not going to characterize whether or not they already pay their “fair share” as that requires a moral judgment I’m not prepared to make). For starters, what about looking at increasing the tax on carried interest for hedge fund managers and maybe a graduated capital gains tax rate? I digress.
Despite being from opposite sides of the political spectrum, both men are laudably philanthropic; however, most of their giving is accomplished through foundations which spend the funds on causes close to the hearts of each man. Seems to me one way Mr. Buffett and Mr. Langone could pay more taxes would be to leave their wealth vulnerable to estate taxes upon their deaths; not doing so appears to imply that neither man trusts government to spend the money as efficiently as their foundations will; again, the three of us agree and, again, I digress.
If Mr. Buffett and Mr. Langone are both eager to pay more taxes and if Mr. Langone wants his additional taxes to reduce the federal deficit, I have a modest proposal: Mr. Buffett call Mr. Langone (or Mr. Langone call Mr. Buffett), don’t talk politics, the conversation won’t end happily. Talk instead about going into an area and an industry devastated by the current economic environment; take $20 million with you (I suggest small bills). Start several small businesses with the requirements that the businesses hire the long term unemployed, pay them a more-than-livable wage and provide health insurance for their employees and their dependents. If you guys choose the right small businesses (and surely the Oracle of Omaha and the man who co-founded Home Depot have enough business savvy to find the right opportunities) then those businesses will pay taxes and their employees will pay taxes and all the companies and people with which and with whom they come in contact will pay taxes. Everybody agrees (okay, maybe not everybody but most people) that what will truly improve the economy and lessen the deficit is more people working, paying taxes and being confident enough to spend money and buy houses.
There you have it, not quite paying more taxes but somewhat the same effect and, as with their foundations, Messrs. Buffett and Langone have addressed the problems of job creation and health insurance much more efficiently than the government ever will.