Editorial Board

The Real Reason Warren Buffett Should Pay More Taxes

For most of the past six decades, the U.S. government has taken a lenient approach toward taxing financial wealth. Dividends from stocks and gains on long-term investments are currently taxed at 15 percent, compared with rates on ordinary income as high as 35 percent. The differential treatment has resulted in such attention-grabbing distortions as Warren Buffett paying a smaller share of his income in taxes than his secretary, and Mitt Romney an effective federal rate of only 14.1 percent on $13.7 million in income last year.

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