> Warren Buffett Blog: Easy for politicians to not raise taxes

Wednesday, April 30, 2014

Easy for politicians to not raise taxes

The solution is to either change the promises or tax more. But the trouble is for any given politician he's only going to be there for a year or two. His best solution is to do nothing because he will be gone. And it isn't the kind of problem that you wake up tomorrow and causes the lights to go out or the streets to not get shoveled. It is the easiest problem in the world to postpone.

In Omaha, I would not like to change the promises that have been made to the people who work publicly. So I think we should probably tax more. But that won't work in many municipalities or states. The problems are too big relative to the tax base. You can't tax enough in Detroit to pay the pensions that have been promised. They have gone too far.