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 (10)
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
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
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
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
"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."
So you are advising only those with a conscience should pay higher tax rates?
Posted by David DIez | October 15, 2008 8:50 AM
Posted on October 15, 2008 08:50
Here is the real issue. Buffet lumps himself in with someone making 250K. Its crazy. At 250k you are not wealthy and you still have to worry about your mortgage, saving for your chidrens education, and saving for retirement. Also, you then get hit with the AMT tax which takes all of your tax credits and deductions away. deductions. Warren Buffet, Bill Gates, and Obama are all socialists. Distribution of well is a Marxist idea. State owned banks, distribution of wealth - sounds more like communism.
Posted by Paul | October 16, 2008 5:29 AM
Posted on October 16, 2008 05:29
Here is the real issue. Buffet lumps himself in with someone making 250K. Its crazy. At 250k you are not wealthy and you still have to worry about your mortgage, saving for your chidrens education, and saving for retirement. Also, you then get hit with the AMT tax which takes all of your tax credits and deductions away. deductions. Warren Buffet, Bill Gates, and Obama are all socialists. Distribution of well is a Marxist idea. State owned banks, distribution of wealth - sounds more like communism.
Posted by Paul | October 16, 2008 5:30 AM
Posted on October 16, 2008 05:30
The reason Buffet is paying less of a percentage is because the capital gains tax (which is where he makes the bulk of his money, off dividends from his Berkshire stock) is RIDICULOUSLY low. So, all these ultra-rich CEOs who get stock options pay a capital gains tax that is practically nothing.
I frankly can't believe that anyone on this string of posts thinks it's OK that the percentage disparity between Buffet and his secretary is so large. PAY YOUR FAIR SHARE! And that includes the people making millions of dollars a year. Many of them were born into money anyway. What did they do to "earn" that money?
And what possible good would it do for Buffet to voluntarily pay more tax? That's not changing the tax landscape. If he's the only one that does it, how is that helping?
All Buffet is saying is, shouldn't he and his secretary pay the same percentage?
Posted by Gerry | November 3, 2008 10:17 AM
Posted on November 3, 2008 10:17