Warren Buffet isn’t the only member of the ultra-wealthy that openly says that income taxes for high income earners should be much higher. Bill Gross, a bond investor for PIMCO, also believes the rich should be taxed more. He stated that high income earners have enjoyed an enourmous privilege since the Regan administration and that high income earners should be taxes at over 50%. Ouch!!
Corporate tax rates, as a percentage of GDP, are at a historically low rate of 1% according to Gross. Another emerging problem among state and local governments is that businesses theaten to leave the state/region if taxes increase as a deterrent.
An increase of this magnitude seems a bit extreme. The biggest problem with this, especially with corporations, is that it would put international businesses at an even bigger advantage. Businesses would consider relocationg to a country in which taxes are low. US companies would struggle to compete with them.