The idea that raising taxes on super-rich people would hurt the
economy.

Buffett observes that his own personal taxes as a percent of his
income have plummeted in the past decade, to all-time lows. He
observes, as he has before, that he pays a much lower tax rate
than his secretary. He calls out the absurdity of hedge-fund
managers and other professional investors playing "long-term
capital gains" rates on short-term trading profits.

And then he takes aim at the biggest rationale for preserving
these astonishing tax breaks: The claim that, if taxes on
deca-millionaires and billionaires were increased, these
super-rich Americans would stop investing, thus clobbering the
economy and hurting job growth:

Back in the 1980s and 1990s, tax rates for the rich were far
higher, and my percentage rate was in the middle of the pack.
According to a theory I sometimes hear, I should have thrown a
fit and refused to invest because of the elevated tax rates on
capital gains and dividends.

I didn’t refuse, nor did others. 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.

When presented with these facts, those who argue against tax
increases on the super-rich--or, even more absurdly, for more tax
cuts--often point to President Ronald Reagan, observing that his
tax cuts for the wealthy helped usher in a long economic boom.

In short, it ignores almost all the economic data we have. And it
appears to be based on a rigid ideology--almost a
religion--rather than common sense.

Buffett, by the way, isn't proposing a blanket increase on
today's entire top tax bracket (those making over $379,150, many
of whom protest against the idea that they are "rich.")
Buffett is suggesting the implementation of two new brackets--one
for taxpayers making over $1 million, of whom there are 237,000
in the country, and one for taxpayers making over $10 million, of
whom there are only 8,000.

In other words, Buffett's tax-increase-on-the-super-rich would
affect 1 in 1,253 Americans, less than 1/10th of 1% of the
population.