Does Warren Buffett really pay lower tax rates than his secretary? According to him, absolutely.
http://www.timesonline.co.uk/tol/money/tax/article1996735.ece
According to the numbers, maybe not.
http://www.texasstartupblog.com/2008/01/23/warren-buffett-cheap-skate/
Whatever the case, one should be careful in applying Warren Buffett's logic to areas (or individuals) that don't apply.
He is not talking about personal income taxes here, he is talking about "the rate of tax that private equity and hedge fund staff pay on their share of the profits" (which for them might as well be the same as personal income). Would it be fair to adjust these rates so those wealthy hedge fund owners are taxed appropriately? Sure. It might be fair. However, please don't throw all CEOs, corporate executives and well-to-do individuals into Warren's bucket. They work hard for their money just like you and I do, and they get taxed even harder.
The top 1% of U.S. income earners pay almost 40% of all the federal taxes collected in this country. (Source: My friend Kyle, who said he got his numbers from 2005 IRS numbers)
We should be thanking the wealthy for all they do for us and our government, not accusing them of being villains and thiefs. Thanks rich guys.
Wednesday, July 16, 2008
Taxes: Round 1
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6 comments:
I sooo appreciate you clearing this up. My husband and I scrimped & saved for 8 years while I became a teacher and he went to school to become a doctor. We paid for it ourselves without even student loans or help from our parents. We ate PB & J’s literally everyday, RARELY ate out, drove junker cars, and lived in a 1 bedroom apartment—never having cable TV. We paid our dues, and are now living well. As a result, we now pay a RIDICULOUS amount of taxes. If someone wants to work hard and provide well for themselves—that is their RIGHT!! They shouldn’t be penalized and taxed to death because of it. It is scary how many people in this country wholeheartedly embrace communistic and socialistic ideas. My husband had a patient the other day from France. He said he loves it so much more here because in France taxes are 75% of your income, so no one wants to work very hard and socialized medicine is the biggest joke there is. By the way—we were each the first in our families to go to college, ….so it’s not like we came from wealth in the first place. So many people could improve their own situations if they were willing to sacrifice and put forth the effort instead of just holding out their hands or bashing those that have worked hard to earn their large income.
Agreed.
That was you loving wife. I agree. Although I'm sure you agree with yourself now, as always.
Most importantly, to me, heavy taxes on the wealthy (doesnt it seem that people are in favor of them just for the purpose of punishing them a bit for being too rich?) just makes the economy worse for everyone, including the poor and middle class. The economy always does better when you are putting money back into the economy rather than feeding it to the fed govt. And taxes DO create incentives in work habits.
The rich person tax that I think all people should be in favor of and which I have never heard a solid argument against, however, is the so-called "death tax" (inheritance tax). I am waiting for the Republican Party (of which I am a member) to finally see the light on this subject.
I was really excited to visit/read/comment on your blog... but then I read about water, Diet Dr. Pepper, & taxes. I did like Calvin & Hobbs and half-nother though... I'm just too lazy to comment on each. Sorry.
Alexandra, why do you support the death tax?
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