Warren Buffett creating a ruckus

[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.

[jay santos]

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.

71 said if he made any more dollars, they'd be taxed at 45%. I was surprised by that but didn't challenge him. He's smart enough to know how to hide his income. My view of the tax world is probably more like Buffet's.

[ChinoCoug]

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.

No one? Do you have a list of whom he sent it to? Buffet is unique because he's taxed capital gains, not income tax. That's why he pays so low. It's hard to believe Gates pays <18%.

[MikeWaters]

ABC contacted at least 40 or so they said.

[jay santos]

Originally Posted by ChinoCoug

No one? Do you have a list of whom he sent it to? Buffet is unique because he's taxed capital gains, not income tax. That's why he pays so low. It's hard to believe Gates pays <18%.

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

[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.

[jay santos]

I figured with the basic deductions I get with five kids, large mortgage, and tithing and then taking down my income with maxed 401K and health care FSA, you don't pay any income tax whatsoever on anything less than 100K income.

[hyrum]

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.

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.

[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.