A Guest Viewpoint: Qualified Support for Increasing Taxes, Obama

Long-time friend and former Textron colleague, Rick Watson, offers a direct, well-considered viewpoint in response to my last post and comments--the one on Warren Buffett's WSJ Op-Ed piece advocating higher taxes for the rich and super-rich. With Rick's permission I share it with you here. For many years, Rick managed Textron's pension and insurance company investments, then served as group officer for Textron's financial services companies, and ended his career as vp, treasurer and sometime M&A deal team leader. He and wife Carolyn are among our favorite dinner and conversation companions. Rick's response:

Greg, 

Like you, I thought Buffett's comments were on point and appropriate. I also am open to paying higher taxes personally and seeing some reduction in my entitlements. However, I could only be supportive of higher taxes if it were part of a global solution to the debt and fairness issues facing the US. Simply raising taxes on those of us with incomes above $250,000 and making no other changes would allow Congress to temporarily avoid the bigger long-term problems.  

I favor a solution like Simpson Bowles and think taxes without addressing all the other important issues is as bad as spending cuts alone. I believe that Medicare, Social Security and Medicaid need to be changed for long term viability. Defense spending needs to be reduced. The tax code needs simplification and broadening of the base. I favor a truly flat, graduated tax, no deductions, no exemptions and no incentives. This should be true for corporations as well as individuals.  

We need a clear national discussion about what we want our government to provide and what we want the states and individuals to be responsible for. I now believe that the Tea Party, which I generally dislike, has actually done the country a service. We need the issue of deficits and governments role in our lives put under a spot light. Now that we've got the attention of a least some voters, we need honesty and facing up to the tough choices. Unless Obama's new plan addresses the big issues and is honest about government's limited ability to create jobs, I'll look elsewhere for a presidential candidate. 

Rick

Thanks, Rick. Looking forward to dinner and conversation again.