Warren Buffett Tries To Time Congress' Deficit Debate

Warren Buffett, July 18, 2011. i i

Warren Buffett, July 18, 2011. Pablo Martinez Monsivais/AP hide caption

itoggle caption Pablo Martinez Monsivais/AP
Warren Buffett, July 18, 2011.

Warren Buffett, July 18, 2011.

Pablo Martinez Monsivais/AP

Warren Buffett, the Oracle of Omaha and one of the world's wealthiest individuals, is well known in investment circles for his advice against trying to time the market.

But trying to time a political debate is an entirely different matter for the master investor.

Buffett has a New York Times op-ed that's getting much attention Monday. In it, he makes an argument that he has made for years, that the federal government should tax the superwealthy at higher rates because their rates are too low relative to those paid by other taxpayers.

What's different this time is the timing. Buffett is weighing in now because he wants to have an impact on the members of Congress' supercommittee as they prepare to decide how to reach $1.5 trillion in deficit reductions over a 10-year period.

Buffett argues that the supercommittee needs to be more ambitious in its deficit reduction and that higher tax rates on the superwealthy will help them get there.

Before offering his recommendation to Congress, Buffett attempts to take the wind out of the sails of congressional Republicans' argument that higher tax rates on the wealthy would harm job creation:



But Buffett doesn't only take on conservative dogma but that of the liberal variety, too. He clearly wants to see reforms to entitlement like Medicare, Medicaid and Social Security:

Job one for the 12 is to pare down some future promises that even a rich America can't fulfill. Big money must be saved here.

He doesn't spend much time on entitlements, however. He's mostly trying to get congressional Republicans to move off their vow to not increase taxes:





