Warren Buffett creating a ruckus

[ChinoCoug]

Originally Posted by jay santos

Corporations can't dodge taxes, so I'm sure Gates through Microsoft pays more taxes than anyone.

Buffet already gave half his fortune to Gates Foundation, so Gates can't really win.

[BYU71]

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.

I haven't read everything Buffet said, so I don't no if he stirred things up or you are. First off, what does the 33% tax represent.

If she had adjusted gross income and no deduction after that and was single and made $1,036,000 a year, she would be paying roughly 32.33%. If she is a receptionist and makes over $1,000,000 I don't feel too sorry for her. (this is based on the 2006 tax rate schedule I looked up). For a single taxpayer you don't even hit the highest marginal tax rate until $336,550 in income. That means you pay 35% on anything over that.

So I guess Buffet meant total taxes as a percent. Fed Income, State INcome, Property taxes, sales tax, gasoline tax, etc. Of course the rich pay a smaller percentage on all those taxes. When someone steps up and buys a gallon of gas do you think the gas tax should be a progressive tax too. Let's see, show me your income statement and we will let you know how much you have to pay in gas tax. Your sales tax on this banana is $450 sir because of your income.

Nice stir up. He stirred up the "tax the rich" crowd who don't think things through, right Mike?

[MikeWaters]

Originally Posted by BYU71

I haven't read everything Buffet said, so I don't no if he stirred things up or you are. First off, what does the 33% tax represent.

If she had adjusted gross income and no deduction after that and was single and made $1,036,000 a year, she would be paying roughly 32.33%. If she is a receptionist and makes over $1,000,000 I don't feel too sorry for her. (this is based on the 2006 tax rate schedule I looked up). For a single taxpayer you don't even hit the highest marginal tax rate until $336,550 in income. That means you pay 35% on anything over that.

So I guess Buffet meant total taxes as a percent. Fed Income, State INcome, Property taxes, sales tax, gasoline tax, etc. Of course the rich pay a smaller percentage on all those taxes. When someone steps up and buys a gallon of gas do you think the gas tax should be a progressive tax too. Let's see, show me your income statement and we will let you know how much you have to pay in gas tax. Your sales tax on this banana is $450 sir because of your income.

Nice stir up. He stirred up the "tax the rich" crowd who don't think things through, right Mike?

Sorry that Santos stirred you up when he called you out about your ridiculous tax claims.

[BYU71]

Originally Posted by MikeWaters

Sorry that Santos stirred you up when he called you out about your ridiculous tax claims.

Santos didn't stir me up. My claim was if I made any more money. I never said I pay 45% in income taxes. My claim was if I make another dollar, what would my tax be on that additional $. Obviously you don't understand how the progressive tax system works and marginal tax rates.

Federal marginal rate 35%, state of Utah rate 7.5%. Sure that is 42.5%. I am off by 2.5% You call that ridiculous?

Now, you could call bull shit and say I don't make that much money and I couldn't disprove you, because I am not going to show you any personal records to prove rather I do or don't.

[MikeWaters]

Originally Posted by BYU71

Santos didn't stir me up. My claim was if I made any more money. I never said I pay 45% in income taxes. My claim was if I make another dollar, what would my tax be on that additional $. Obviously you don't understand how the progressive tax system works and marginal tax rates.

Federal marginal rate 35%, state of Utah rate 7.5%. Sure that is 42.5%. I am off by 2.5% You call that ridiculous?

Now, you could call bull shit and say I don't make that much money and I couldn't disprove you, because I am not going to show you any personal records to prove rather I do or don't.

So who pays more state and federal income tax? You or your receptionist?

[BYU71]

Originally Posted by MikeWaters

So who pays more state and federal income tax? You or your receptionist?

OK, there is this fictional guy on the boards who calls himself BYU71. He is really a guy locked up in a mental institution who has access to a computer all day. This guy fantasizes about being someone else. I am sure that fantasy person exists someplace in real life so the numbers would be true for that person.

That person will be paying probably at least $70,000 in Federal and State taxes this year. His secretary doesn't make that much.

As a percentage of income, that person also pays more fed and state income tax than his secretary.

[MikeWaters]

Originally Posted by BYU71

OK, there is this fictional guy on the boards who calls himself BYU71. He is really a guy locked up in a mental institution who has access to a computer all day. This guy fantasizes about being someone else. I am sure that fantasy person exists someplace in real life so the numbers would be true for that person.

That person will be paying probably at least $70,000 in Federal and State taxes this year. His secretary doesn't make that much.

As a percentage of income, that person also pays more fed and state income tax than his secretary.

I wonder if Warren Buffet's receptionist makes more than hypothetical BYU71.

[BYU71]

Originally Posted by MikeWaters

I wonder if Warren Buffet's receptionist makes more than hypothetical BYU71.

If she pays 33% in federal income taxes, she makes a hell of a lot more than the hypothetical BYU71.

[venomous viper]

Your banter was fun to read, but the pictures were the best part of it. Just admit that the tax code and those than pay and those that don't is messed up and you'll hit the nail on the head. Everyone has the same right to adjust their affairs in such a way to pay the least possible taxes.(according to Judge Learned Hand of the supreme court MANY years ago)

[Detroitdad]

Originally Posted by venomous viper

Your banter was fun to read, but the pictures were the best part of it. Just admit that the tax code and those than pay and those that don't is messed up and you'll hit the nail on the head. Everyone has the same right to adjust their affairs in such a way to pay the least possible taxes.(according to Judge Learned Hand of the supreme court MANY years ago)

Learned Hand was never on the SUpreme Court, but point well taken.