From CNN.com
Speaking to several hundred supporters of the U.S. Senator from New York, Buffett revealed his puzzlement that he was taxed at a lower rate than many of the lesser-paid individuals working for his company.
Buffett said he makes $46 million a year in income and is only taxed at a 17.7 percent rate on his federal income taxes. By contrast, those who work for him, and make considerably less, pay on average about 32.9 percent in taxes - with the highest rate being 39.7 percent.
To emphasize his point, Buffett offered $1 million to the audience member who could show that one of the nation's wealthiest individuals pays a higher tax rate than one of their subordinates.
"I'm willing to bet anyone in this room $1 million that those rates are less than the secretary has to pay," said Buffett.
3 comments:
yeah, that's disturbing. Then again, he hires really good accountants that his employees can't afford to make sure he's paying as little as possible.
On the other hand...
Buffett: $46 million x 17.7% = $8.14 million tax revenue
"Normal" person assuming a $100,000 salary:
$100,000 x 32.9% = $32,900
Don't lose sight of the fact that Buffett pays over $8 million in taxes... plus any taxes that his accountants earn by getting paid by him
I agree, but a higher tax rate on lower income people means they will require more government assistance when they stop working.
I would like to see a flat tax but it will never happen, too much money is made off of taxes as an industry. H&R Block hires more seasonal employees than any other company (The Jeopardy guy will never forget that now).
If taxes are flat everyone is motivated to make more morny, if they are high on low income they are not motivated to make more and more likely to stay on unemployment benefits.
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