Quote:
Originally Posted by MikeWaters
He has come forward and said that his receptionist pays about 33% of income as tax, and that he pays close to half that at 18%.
He has challenged the richest men in America, saying that if one can come forward and demonstrate that he pays a higher percentage than his receptionist, that he will donate $1 million to the charity of his/her choice.
So the media is contacting all those tycoons.
Not a single one has come forward, all have declined to comment. It's crickets, baby.
Warren Buffet doesn't think it's right that the richest Americans pay less tax, proportionally, than those that are not rich.
Yes, I know many of the poorest don't pay income taxes, after refund, but still I admire Buffet stirring things up.
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First of all if his receptionist is paying 33% she is very well paid compared to our receptionist. Actually we had to lay her off to cut administrative overhead costs, but before that, I think she was making in the low 20s for 1.0 FTE. I suppose her eventual Federal Income Tax rate depends on what her husband was making, but that salary alone she'd hardly pay any tax (depending on kids, etc).
Warren Buffet pays a low rate from getting a ton of income from long term capital gains, is my guess, and being the CEO he probably gets a lot of perks (car, travel, etc) paid by Berkshire-Hathaway that his receptionist doesn't. I no longer can figure out the tax rate, I just fill in all the info, w2 income, short/long cap gains, dividends, etc and have to let the software figure it out. It does tell me at the end what our flat tax rate would have been (tax/unadjusted gross), and its usually around 15%, if I recall correctly. If I want a guesstimate as far as planning what to put in the 401k I always ballpark the marginal rate (Fed+State) at at least one-third. I guess I'm one of those sad-sacks paying the bills for Buffett, Trump, et al. I at least admire Buffett for being a true value investor and not one to chase the latest fad investment vehicle or stock sector.