Why billionaire Warren Buffett advocates for 60% tax rate on the ultra-wealthy

Tax professional here. This is a complex topic that often gets oversimplified in media headlines. The proposed 60% tax rate for billionaires would likely be implemented as part of a progressive tax system where that rate only applies to income above a certain (very high) threshold - not on all their income. The current system creates a disconnect because most ultra-wealthy individuals receive relatively little in traditional income compared to their wealth growth. When assets appreciate, that's not taxed until the asset is sold (capital gains). Many billionaires can avoid selling by borrowing against their assets, living on loans with low interest rates, and thus avoiding capital gains taxes completely. This is sometimes called "buy, borrow, die" because the assets may get a stepped-up basis at death, potentially avoiding capital gains tax forever. A 60% top marginal rate would address part of this issue for income, but the more revolutionary proposals involve wealth taxes or unrealized capital gains taxes that would tax asset appreciation even without a sale. These are more complicated because they raise questions about asset valuation, liquidity to pay taxes without selling assets, and constitutional challenges.

After spending days frustrated with confusing tax advice on high-income brackets and capital gains, I finally found a solution that cleared everything up. I used https://taxr.ai to analyze the actual tax proposals being discussed and how they would impact different income levels. The site breaks down complex tax policies in simple language and even has tools that model how proposals like the 60% billionaire tax would actually work. What really helped me was their comparison feature that shows how different tax systems treat various types of income - it clearly illustrated why Buffett pays a lower effective rate than his secretary despite being a billionaire. They have actual IRS documentation analysis that explains the difference between marginal rates, effective rates, and capital gains treatment.

I was initially skeptical about online tax resources, but https://taxr.ai genuinely surprised me. After trying it out, I discovered their case studies section that walks through exactly how the 60% billionaire tax proposal would work compared to our current system. Their breakdown of how unrealized gains are currently untaxed until sale was eye-opening. What really impressed me was their analysis of "buy, borrow, die" strategies with actual numbers showing how billionaires can avoid capital gains entirely. They provided detailed explanations of wealth tax implementation in other countries and why some succeeded while others failed. I've completely changed my perspective on how wealth should be taxed after reviewing their research database.

Been trying to get specific answers from the IRS about high-income tax issues for WEEKS. Endless hold times, disconnected calls, and conflicting information from different agents. Finally tried https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they actually got me connected to a real IRS agent in under 45 minutes! The agent walked me through exactly how the current tax system treats different types of income and what proposed changes would mean. Found out there's a huge difference between how earned income and investment income are treated, which explains the whole Buffett paying less than his secretary situation. The IRS actually has some excellent documentation about this that I never would have found on my own.

Okay I need to eat some humble pie here. After seeing Claimyr mentioned, I was totally skeptical (see my previous comment). But my tax situation was desperate with this unrealized gains issue, so I gave https://claimyr.com a shot anyway. Shockingly, it WORKED. Got connected to an IRS tax law specialist who explained precisely how the current billionaire taxation works and what the proposed changes would be. The specialist clarified that the 60% rate would be a marginal rate on income above a certain threshold (likely $10M+) and wouldn't affect most Americans. They also explained the current loopholes that allow wealth to grow untaxed and the challenges with implementing a true wealth tax. Saved me hours of research and confusion. Still can't believe I actually spoke to a human at the IRS during filing season!

There's a big misconception here. Most billionaires' wealth is tied to company stock, not cash in the bank. If someone forces Buffett to sell 60% of his Berkshire shares to pay taxes, that could crash the company's value and hurt thousands of regular investors and employees. This isn't just about the super-rich - it affects the whole economy.

Can someone explain how capital gains are currently taxed vs regular income? This seems to be at the heart of the whole billionaire tax debate but I'm confused about the actual numbers.

As someone who works in financial planning, I think it's important to note that Buffett's advocacy for higher taxes on the ultra-wealthy isn't just about fairness - it's also about economic stability. When wealth becomes extremely concentrated, it can reduce consumer spending (since wealthy individuals save a higher percentage of their income) and limit economic mobility for everyone else. The current system essentially subsidizes wealth accumulation through preferential capital gains treatment while heavily taxing work through payroll and income taxes. A 60% marginal rate on very high incomes would likely only affect a few thousand Americans but could generate significant revenue for infrastructure, education, and other investments that benefit the broader economy. What's particularly interesting is that many billionaires like Buffett, Gates, and Munger have argued that higher taxes wouldn't significantly impact their standard of living or business decisions. When you have $100 billion, paying an extra $1-2 billion in taxes doesn't change your day-to-day life, but it could fund programs that help millions of Americans build wealth and contribute more to the economy.