Mr Buffett said that he was taxed at 17.7 per cent on the $46 million he made last year, without trying to avoid paying higher taxes, while his secretary, who earned $60,000, was taxed at 30 per cent. Mr Buffett told his audience, which included John Mack, the chairman of Morgan Stanley, and Alan Patricof, the founder of the US branch of Apax Partners, that US government policy had accentuated a disparity of wealth that hurt the economy by stifling opportunity and motivation.
I read this article today and I think it really says something about this country and about Warren Buffet. He is a great man who has donated 37 billion dollars to the Bill and Melinda Gates Foundation - which is dedicated to bringing innovations of health and learning to the global community. Even with all his money Buffet doesn't think of himself as better or more worthy of consideration than the average American.
America has a huge disparity in income between its richest and its poorest citizens. In 2000 the richest 5% made 19x more than the poorest 20%. Studies show that Income disparity makes a huge difference in a person's health and happiness. (Stanford's own Prof. Salposky)
Most people still say that America is a land of opportunity - that if you work hard, you can fashion a great life for yourself. But the heavy taxes that affect the middle class all but assure that you'll never become super-wealthy.
It seems like those who can afford to pay higher taxes are the ones that don't have to. Too bad. I'm glad someone wealthy is talking about it.
Comments (11)
Maybe he should be pushing to have is secretary pay less in taxes.
If he really thinks he is paying to little , why hasn't he written a check out to the US Treasury? All talk and no action here.
I would love to see her tax return since 30% seems a little high. Even if she is single, her rate is only 25% at 60k.Where did the extra 5% come from.
Even better maybe he should also write out a bigger check to her and maybe she will pay less.
I would also like to see how he did his taxes since people who make over 350k are paying 35% tax rate and if he wasn't trying to avoid paying higher taxes then he should have payed around that percentage.
In the end he has the pen and checkbook. He always has the option to lead by example and write out a check to the government, which he doesn't seem to be doing anytime too soon.
Posted by Tom | August 8, 2007 10:40 PM
Posted on August 8, 2007 22:40
Write a check to the US Treasury? And what would the point of that be? Warren Buffet has already pledged his massive fortune to charity - 30 billion dollars to the Bill and Melinda Gates Foundation - which has been doing amazing things to save the lives of the poorest people in the world. He has already led by example.
Posted by Jason | August 8, 2007 11:49 PM
Posted on August 8, 2007 23:49
He says the rich should be paying more taxes. If he really feels that way then maybe he should pay more. The point I am making there is he should put his money where his mouth is.
The fact that he gives money to charity is a personal thing. It doesn't affect anybody but him and the people he helps.
Based on your comments I guess you feel like I do and that the foundations and charities do a better job at helping people than the government does. If so I am with you and Warren Buffet is doing a good thing. On the other hand, making people no matter what they make, pay more taxes doesn't help anybody. From my point of view it looks like they hurt people more then help.
I actually believe that all people should pay the exact same % of tax no matter what your income. I am willing to make the bleeding hearts happy and say that all money over 40k-50k be taxed since most people who make below 40k and have a family don't pay any federal taxes anyway.
Posted by Tom | August 9, 2007 7:52 AM
Posted on August 9, 2007 07:52
why does buffs sec. only make 60k?The problem with our system is YOU ARE PENALIZED FOR BEING PRODUCTIVE.As my small business grew,my accountant said a couple years ago"if you make any more money,its just all going to go to taxes",I walked out,telling myself"that can't be",SHE WAS RIGHT!!I work 100hrs a week average,and now I'm penalized for being more productive,whats my incentive to grow,and get more customers,if its just going to go to taxes??
Posted by mike 32% tax payer, | January 26, 2008 8:57 AM
Posted on January 26, 2008 08:57
Exactly how do buff and steve jobs avoid high tax rates?,as near as i can gather so far,buffet does it by only paying cap. gains rates,somehow living on investment profits taxed at low cap. gain rate,and,i guess,long term cap.gains only-i read an article that said jobs makes $1 year,gets compensated in other"non-taxable"ways
Posted by mike 32% tax payer, | January 26, 2008 9:07 AM
Posted on January 26, 2008 09:07
Wow I thought the government was for taking care of projects that we can't/won't do as individuals such as national defense and roads. If that is so, why is the govt. taking 5+ million from one person? I think all workers should pay some income tax, but our tax system has now become a big welfare program with earned/unearned income tax credits.
Posted by Anonymous | March 5, 2008 8:18 AM
Posted on March 5, 2008 08:18
The current tax system is regressive:
http://one-simple-idea.com/DisparityTrend.htm#Taxes
Posted by d.a.n | April 13, 2008 9:09 AM
Posted on April 13, 2008 09:09
I don't buy it that she pays 30%. $60,000 on the tax tables is only 25% bracket. That assumes she has no deductions, credits, or exemptions. If she is married that rate will drop down to around 17%.
Another example of BS class baiting.
Posted by paul | June 22, 2008 11:17 AM
Posted on June 22, 2008 11:17
It is quite easy to see how someone making $60K pays 30% in total federal income taxes. Here's the proof:
http://One-Simple-Idea.com/DisparityTrend.htm#WarrenBuffet
Posted by d.a.n | July 24, 2008 1:58 PM
Posted on July 24, 2008 13:58
That is still dishonest. First of all social security is not referred to as Federal Income Tax. Secondly the employers half should not be included. It comes from the employers money not hers. If you're going to use the excuse that if the company didn't have to pay that they would pay her more than why not include all corporate taxes because there is a chance that if they were taxed less they might pay their employees more.
Posted by Dave | August 4, 2008 4:34 PM
Posted on August 4, 2008 16:34
CORRECTION: Yes, I mean total federal taxes including all federal income taxes, Social Security, and Medicare taxes (which is still essentially taxing income).
Adding that all up, it's very easy to pay 30% or more in total federal taxes. Here's the proof:
http://One-Simple-Idea.com/DisparityTrend.htm#Taxes
Posted by d.a.n | August 14, 2008 3:13 PM
Posted on August 14, 2008 15:13