Conversation | 04/30/2008 12:00 am

Whoopi: Why Isn't Anyone Screaming About Taxes?

With Joan Juliet Buck, Lesley Stahl, Liz Smith and Whoopi Goldberg

LESLEY: They’re the ones that don’t pay the taxes. And that’s what always gets me going when I read the newspaper. I look at those kinds of stories about people who … it’s always the richest who fight the taxes the most.

LIZ: Well wasn’t there something Bill Gates investigated proving that he paid like the normal percentage less —

LESLEY: Warren Buffett. It was Warren Buffett.

LIZ: Warren Buffett. You’re right.

LESLEY: He paid … his rate was less than his secretary’s. And he said, “I’m willing to pay my taxes …” Warren Buffett. “I’m willing to pay more.”

JOAN: OK, this is also so interesting with what’s going on in the election right now. There was a story in the New York Sun about Bloomberg saying it’s not a good idea to threaten to tax the rich in New York City because they would leave. And that’s the tax base. You can’t touch the rich. You can’t threaten to touch the rich. You can’t tax them because they are power. So the way we’re structured, you can’t tax the people who have the money, who have the power, because they may get pissed off and go away. So you have to treat —

WHOOPI: Is he saying that you can’t tax the rich because they’re rich? Because that I understand. Why … that’s, to me, un-American. If you’re paying 50 percent, somebody shouldn’t be able to come to you and say, “Oh, and by the way, because you did everything you needed to do and you made a little more money, we’re penalizing you and taking 15 more percent.” Either say it’s now a 70 percent tax, or don’t be pissed because I made it. That’s the thing. I don’t mind paying it. But I don’t want to —

LESLEY: But they often have a lower tax rate.

WHOOPI: I don’t.

JOAN: They have a lower tax rate. Here we are. This is Bloomberg quoted in the New York Sun, speaking for the first time about the new tax proposal, said that the first rule of imposing taxes should be, “Don’t try to raise the taxes on those who could pick up and move out tomorrow because you won’t get even what they’ve been paying. I can’t think of a group that is more portable, actually, than hedge fund managers, or some of those private equity firms. They could move to Connecticut overnight.” So we’ve got to allow the richest among us to pay proportionately lower taxes …

LIZ: To make them happy.

JOAN: So that they’ll be happy and stick around with their SUVs and their dinner reservations.

WHOOPI: Are you saying they are paying proportionately less tax?

JOAN: Yes. They are paying —

LIZ: Well, you know, we’ve come a long way from WWII when Carole Lombard, one of the greatest stars, made a public declaration that she was pleased and proud to pay all of her taxes because she loved the United States. It’s that the United States has changed enormously since then. Those were days when people made sacrifices because we were at war. And they worked hard and … I don’t know, it was fairer, I think. But maybe I’m nuts.

JOAN: It sounded to me always like it was fairer. It sounds like … I mean, today the thing is we’re at war, so therefore we don’t make sacrifices.

LIZ: Well, we have been at war ever since then, really. You know, we produced a great armada in order to win that war. And the Pentagon has gone on gobbling up everybody’s money ever since then.

JOAN: Where did this spirit of sacrifice go?

Read more about: Barack Obama, Election, Hillary Clinton, Taxes, Warren Buffett

101 Reader Comments (so far…) Sign In or Register to comment

Some of us are too broke to even pay taxes—just FICA. Or some years we get the earned income thing. This is why health care plans that are tax credits don’t impress us…I can’t even take my house deduction some yrs. I know it’s hard to imagine that some women live this way, but we do.

By Star Lawrence on 04/30/2008 10:23 am

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You are right Star , some of us just pay FICA because we do not make enough. Years ago when there was a stimulus package I did not get it because I did not pay taxes. I could have used the 300 or whatever they dolled out then. I was too poor to get it. This time I am supposed to get it, so we shall see. I am not holding my breath.

By Jeannot Kensinger on 04/30/2008 10:39 am

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I am very excited to see you host the TONYS this year. Hope I will be there. Thank you for everything. You are very talented and I adore you on THE VIEW. Here is a couple of Broadway interviews I did at the Drama Desk nomination party. Hope you enjoy them. Corine Cohen http://www.corinescorner.com/media/DramaDesk2008/jaredbradshaw.html http://www.corinescorner.com/media/DramaDesk2008/schulerhensley.html http://www.corinescorner.com/media/DramaDesk2008/sierraboggess.html

By Corinescorner.com on 05/18/2008 12:43 am

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Where is everyone on this subject? They’re trying to find the money to pay the bills, trying to keep their jobs, and trying to live the American dream. Whoopi…..I’m being taxed on my cell phone bill for a town I don’t even live in. I’ve called the cell phone company and since my mailing address is in this town, they “have me down” as living in the town and they won’t make the change. It’s only about $1.15 a month, but that adds up! Every time I have lunch with the Mayor, I tell her how much I have contributed to the town in my cell phone taxes. I hope the town is getting the money???????

By Suzanne Frazier on 04/30/2008 10:39 am

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PS….I live in the mountains of Colorado where we don’t have home mail delivery, so my only option to get mail is at the post office in the town, whose cell phone taxes I’m paying. At least you get home mail delivery!

By Suzanne Frazier on 04/30/2008 10:41 am

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Whoopi, since I know you like to read, here’s a book you’d find fascinating: The Greedy Hand: How Taxes Drive Americans Crazy and What To Do About It, by Amity Shales http://www.amazon.com/Greedy-Hand-Taxes-Drive-Americans/dp/0375501320 Also, you might want to peruse the websites of Drs. Thomas Sowell and Walter Williams, both African-American economic scholars who are my main sources for economic information. My favorite economist, now deceased, Milton Friedman, had a PBS series on economics that discussed taxes, but said our system of taxation is the most inefficient method: using other people’s money to pay other people. It like a pipe with lots of holes, you have to send through double or triple the amount of water to get the right amount to the right place. http://www.gmu.edu/departments/economics/wew/ http://www.tsowell.com/

By Bella Mia on 04/30/2008 10:41 am

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Here is one of the Friedman PBS videos dealing with taxes and government: http://video.google.com/videoplay?docid=6813529239937418232& He is a genius.

By Bella Mia on 04/30/2008 10:49 am

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The American middle class is just overwhelmed with trying to survive. Talk about profits: Yesterday BP announced profits 63% higher than last year, Shell up 25%. Our son is owner/operator of an 18 wheeler. It costs him $1400 to fill his tank and has to do it twice a week. Circling the White House for a President who doesn’t hear won’t help. Bush now has 73% dissatisfied rating - the lowest in history. And don’t get me started on the war. Tomorrow is the 5th anniversary of Bush’s appearance aboard the USS Lincoln where he claimed “Mission Accomplished”. Why didn’t the war end then? Our nation is in big trouble and no one to help us. Re the stimulus rebate tax that is now being mailed: I’d feel a whole lot better about it if I didn’t know we borrowed the money from the Middle East and China so we can all go shopping.

By Estimada C on 04/30/2008 10:59 am

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Well as they say, “the squeaky wheel gets the grease” and “we the people” have not been squeaking. Lobbyist, corporations, friends and associates of politicans spend their time squeaking. I am as guilty as anyone but am trying to stay more informed and write to my representatives. For example, how many of us knew about the details of new bankruptcy law passed by Congress and how it affects the interest rates your creditors can charge. We all have to get informed and stand up for our combined interests. We can’t just vote someone in and then take a nap. We have to rant and rave. We have to decide how we want our tax dollars spent and what taxes we will pay. We “the people” have to make as much noise as the lobbyist and corporations. Then perhaps we will have health care, free college education for our children and other things that many other countries have. Together we have power. Perhaps the ladies that put this site together can help us have a collective voice!

By Candace Wood on 04/30/2008 11:03 am

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candace, based on what i can see, we don’t agree on anything. like democrats, we can’t. a collective voice would be wonderful, but we may have to settle for a diverse cacophony. whoopi, there is a program in which at&t reduces a poor person’s phone bill by $10 per month. they still do take out all those taxes, though, so it’s a net loss.

By mary lou s on 04/30/2008 11:18 am

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Actually, the 10-15% tax rate is misleading. This is because hedge fund managers, as well as other money managers, pay the CAPITAL GAINS RATE on money that is made in the market. They make most of their money by INVESTING MONEY THAT HAS ALREADY BEEN TAXED. For example, if you have $125 from income, then suppose after taxes you have $100 left. You invest this $100 and if you are lucky, this grows to $200. You then pay the 15% on the $100 that was earned. At then end you have $100 principal + (1-15%)*100 = $185. However, there is no RISK FREE INVESTMENT!!! The $100 could be worth $0 tomorrow!! These hedge fund managers may have made the right bets in the past years, (but this year we can expect this to turn around). Can you imagine taking your hard-earned after-tax money, only to get it taxed AGAIN 30-40%??? What would be the point of investing? Who would buy stocks? Who would run companies? My outrage of taxes is because most of the people who pay taxes never see any benefit. A small fraction of the people pay THE MAJORITY OF TAXES. It is terrifying to think that 50% of this country can tell (by voting) what the top 10% can do with their money (give it to them!! they neeeeed it!). Peopel aren’t poor because they have no money. They are poor because they do not know how to manage it.

By Kay Mitchell on 04/30/2008 11:11 am

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kay, my income is slightly over $15,000 last year before the medicare premium reduced it to below $14,000. maybe you just don’t know any poor people. i’m lucky enough to be able to get by on my income, but more than one friend or relative has been impressed with the feat. if you look at the sidewalks, highway overpasses and tent cities, you can find homeless people. at the food banks, you will find more. then go to an elementary school in a poor neighborhood and check to see if they have books, pencils, paper, or even basic security.

By mary lou s on 04/30/2008 11:25 am

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Some very interesting facts about capital gains taxes are found here: http://www.heritage.org/Research/Taxes/wm47.cfm Some of my favorites: The current top statutory rate of 20 percent significantly exceeds the optimal tax rate - the rate best for the economy — because the tax code’s bias towards consumption over investment and multiple taxation of investment returns limit investment and retard economic growth. In fact, many economists, including Federal Reserve Chairman Alan Greenspan, believe that the optimal tax rate on capital gains is 0 percent. For example, the 1997 cut in the top capital gains tax rate from 28 percent to 20 percent increased stock prices by approximately 8 percent. Capital gains tax reductions stimulate economic growth, which benefits the entire country. As President Kennedy noted, “A rising tide lifts all boats.” High-income people pay a greater percentage of capital gains taxes when capital gains tax rates are low than when capital gains tax rates are high. The government taxes investment returns - dividends and capital gains - twice, first as corporate income taxes and then as personal income taxes.

By Kay Mitchell on 04/30/2008 11:25 am

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kay, i will agree with you on one thing: STOP TAXING SAVINGS!!!

By mary lou s on 04/30/2008 11:29 am

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Mary Lou S- The question is really, however, Do you stick it to the rich just because they have money? Just because it makes politicans feel good? Or do you, paraphrasing Kennedy, “raise the tide”?? This is something that Obama is totally misguided on. He’d rather have rich people AND poor people with less money, as long as it means taking away from the rich (as Gibson righly noted in the debate that higher taxes mean LESS revenue). Let’s get rid of the waste first. Stop giving people crutches. Stop building bridges to no where. In other words, Let the market operate freely and most optimally. p.s. Bella Mia- LOVE WILLIAMS AND SOWELL. The best modern political philosophers out there today.

By Kay Mitchell on 04/30/2008 11:33 am