Economic Fact: Investors invest to make money whether taxes are high or low.
As Warren Buffett puts it: “I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation.”
Bless Warren Buffett for pointing out this basic truth, and so much more, in his must-read op-ed entitled: “Stop Coddling the Super-Rich” published Aug. 14, 2011 in the NY Times. Click on the link below to read the entire op-ed from the Oracle of Omaha, America’s most successful investor, and a true patriot, Mr. Warren E. Buffett: