My new hero from Omaha

We all need a hero. In my lifetime, I’ve had lots of them, from sports figures — Eddie Joost, shortstop for the Philadelphia A’s, when I was growing up — to politicians (JFK and Eugene McCarthy) to journalists, like Edward R. Murrow and Molly Ivins.

I have a new hero today: the sage of Omaha. I’ve never met him. I don’t own, nor could I afford, even one share of stock in Berkshire Hathaway ($112,000 on Oct. 12). But I think Warren Buffett’s the perfect hero for today because he reminds us that being an American is not all about greed. 

{mosads}Buffett’s a rare creature, indeed. He’s a billionaire who says there’s nothing wrong with asking the wealthy to pay higher taxes. He argues that, because they’ve been so successful, those at the top of the ladder should be grateful to pay more. At the very least, they should happily pay the same rate of taxes as the person who cuts their hair, mows their lawn or drives their car.

In short, Buffett’s a rich man who’s willing to pay his fair share in taxes. For that reason alone, he’s earned the enmity of Republican leaders, who demanded he release his tax returns.

Not so easily deterred, Buffett called their bluff. In a letter to Kansas Republican Rep. Tim Huelskamp, the billionaire investor revealed both the staggering amount of money he made last year and the relatively small amount he paid in taxes. 

2010 was good to Buffett. His adjusted gross income was a whopping $62,855,038. After charitable donations and other deductions, his taxable income was $39, 814,784. He paid only $15,300 in payroll tax, the same amount wage earners making $107,000 would pay. On top of that, he paid $6,923,494 in federal income tax. That’s a lot of money, to be sure, but it only adds up to an overall tax rate of 17.4 percent.

Compare that to what other Americans pay. According to the Tax Policy Center, the average rate for 80 to 90 percent of taxpayers, those earning between $103,000 and $163,000 a year, is 18.2 percent. Those earning up to $211,000 pay 19.8 percent, and those earning from $211,000 to $533,000 pay an average 20.4 percent. 

Buffett made his point. He’s the second-wealthiest man in America. And yet, following the rules, he pays a lower rate of taxes than well over 95 percent of taxpaying Americans. That’s not fair, he says. And he’s right.

Warren Buffett’s not the first to champion tax fairness. In 1985, President Reagan said: “We’re going to close the unproductive tax loopholes that have allowed some of the truly wealthy to avoid paying their fair share. In theory, some of those loopholes were understandable, but in practice they sometimes made it possible for millionaires to pay nothing, while a bus driver was paying 10 percent of his salary. And that’s crazy.”

If Republicans don’t believe Warren Buffett, maybe they should start listening to Ronald Reagan.

Press is host of the nationally syndicated “Bill Press Show.”