Chris Schulz: An Open Letter to Warren Buffet

Dear Mr. Buffett,

In the news recently, you, along with other millionaires, advocated for the raising of taxes among the rich–you demanded this action from President Obama as part of a solution to achieve a balanced budget. As one of the world’s richest men, you certainly have plenty of money to spare and you should do with that money as you please. However, you made your money in a free-market. You were able to identify undervalued and underperforming firms, purchase them and then turn them around into solid investments. No one on this planet has a better idea of return on investment (ROI) than you do. You have made a career of identifying the most efficient uses of your money and then you decided where your dollars would have the greatest return and invested there. In the free market environment that allowed you to make your billions, shouldn’t consumers decide where their money goes?

I would prefer to take my money and go out to eat at a local restaurant. This allows the chef to make a living, pay rent on a building, hire employees, get locally sourced foods from farms and local artisans, which then allows the farmers to live and pay their bills. Or I could donate my money to a charity, one that spends little on administrative expenses and instead gives most of the money back to those it means to help. These charities allow homeless people to get off the streets and find jobs, provide access to college for the underprivileged, provide clean water to third world countries, or fund research on various diseases. Another alternative is to donate my money to the Federal Government. I could decide that the Federal Agencies need $16 muffins, or I may think that nominal public officials need to spend public money on excessive bodyguards, or to tear-up and re-build perfectly good roads in a Keynesian attempt to improve the economy.

The problem here is not that Americans do not want to give more money to make the world a better place. We are generally the most giving nation on Earth. Americans simply want a higher ROI. A dollar sent to the Red Cross is a dollar well spent, a dollar spent at a Farmer’s Market stays in your community, but a dollar sent to the IRS is a dollar wasted. You have pledged 99% of your wealth to charity but none of that will voluntarily be given to the government.

So my suggestion to you, Mr. Buffett, is to approach the President and ask to become the CEO of the Federal Government. Turn it around, bring in new management, make it a place that people want to work and be a part of. I believe that if the corruption, graft and wastefulness are removed, tax-payers will not be offended by higher taxes because they will understand and appreciate where their money is going. It would be easier to convince your fellow millionaires to donate money to the government if it functioned like it should. Or better yet, after removing all that waste, you may discover that we do not need to raise taxes.

Mr. Buffett, the only thing that would be more valuable than donating your wealth would be to donate your years of experience and knowledge in service to your country.

Thank you for reading,

Chris Schulz