Bill Gates and Warren Buffett have it all wrong, according to Scott McNealy.
In an interview on "Squawk Box" Tuesday, McNealy—the chairman of Wayin and the co-founder of Sun Microsystems—said the wealthy should give less to charity and invest more of their money in start-ups. He said that if Gates and Buffett had given their fortunes to budding entrepreneurs rather than the needy, they could have created many more jobs.
"The last thing I want to do is tell Bill Gates and Warren Buffett how to spend their money," he said. "But imagine if they had taken their tens of billions of dollars, chopped it up into $5 million chunks and pledged it to a business plan, sponsored by an MBA graduating from an MBA school with engineers and marketeers that he's recruited and they got 50 percent of the company back to the foundation."
(Read more: Why we likely can't close rich-poor gap)
The wealthy should also pay less in taxes, since their money is poorly spent by the government, he said.