Warren Buffett calls for higher taxes for US super rich!

Warren Buffett, at the 2010 meeting of his Berkshire Hathaway investment group, says that billionaires like himself have been 'coddled' by Congress. Photograph: Nati Harnik/AP

In the process of accumulating one of the greatest fortunes the world has ever seen, Warren Buffett stands apart from the average squillionaire. Not for him the clichés of lavish mansions and superyachts, preferring instead his modest home in Omaha, Nebraska and nights in with burger and cherry cola.

Now Buffett has added to his list of atypical pronouncements by saying that America's super-rich should pay more tax if the country's debt problems are ever to be solved.

Writing in the New York Times on Monday, Buffett argued that the richest members of US society are indulged with an unfairly generous tax regime and are not making a fair contribution to repairing the country's finances.

"While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks," wrote Buffett, whose personal fortune was estimated at $50bn (£30bn) by Forbes this year, making him the third richest person in the world behind Carlos Slim and Bill Gates.

"These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It's nice to have friends in high places," the 80-year old investor added.

Buffett, known as the Sage of Omaha, built his fortune on a no-frills investment strategy and was a fierce critic of the exotic financial investments that brought the banking system to it knees in 2008, dubbing them instruments of financial mass destruction.

A long-time critic of the US tax system, he has calculated that he handed over 17.4% of his income as tax last year – a lower proportion than any of the 20 other people who work in his office.

Under the debt ceiling deal agreed in Washington, a "super committee" of 12 congressmen and senators must find $1.5tn worth of savings and cuts to help cut America's national debt. Tax rises are hugely unpopular with elements within the Republican party, with the Tea Party movement adamant that America should balance its books by cutting public spending.

Buffett argues that this super-committee should raise the tax rate paid by those earning more than $1m a year, including earnings from capital gains which are currently taxed at a lower rate than ordinary income. Those raking in upward of $10m a year could then pay even more.

The package of tax cuts brought in by President George W Bush are set to expire at the end of 2012, although they could be extended. Many of the leading Republicans who hope to challenge Barack Obama at the next presidential election have argued for lower taxation to stimulate theUS economy.

On Saturday Rick Perry, the governor of Texas, argued that it was an "injustice" that almost a half of all Americans currently pay no federal income tax.

"Spreading the wealth punishes success while setting America on a course for greater dependency on government," Perry argued as heannounced his bid for the 2012 Republican nomination.

Buffett argues that the US policymakers should be looking at the other end of the spectrum. As he put it: "My friends and I have been coddled long enough by a billionaire-friendly Congress. It's time for our government to get serious about shared sacrifice."