Recently, Warren Buffett (and his secretary), have been thrust into the limelight of political discourse surrounding taxation. Mr. Buffett, a US Billionaire from Omaha, NE, recently played President Obama’s pitch-man for greater taxation by proclaiming that the rich are not paying their fair share and that taxation favors the rich so much, that Mr. Buffett’s own secretary actually pays more in taxes than he does! His reward for being Obama’s stooge for tax increases, (during a recession), was illegal insider trading information which led to Mr. Buffett’s acquisition of $300,000,000 through a Bank of America trade the day after the quote.
1. Mr. Buffett owes the US Treasury $1 Billion and does not pay his taxes. Therefore, EVERYONE who pays their taxes pays more than Mr. Buffett.
2. Mr. Buffett pays approximately a 15% tax rate because most of his earnings are in Capital Gains. Since he is risking his income, the tax rate is lower. Mr. Buffett’s secretary however is taxed based on earned income brackets and not dividend rates.
3. If Mr. Buffet wants his secretary to pay less in taxes, HE SHOULD PAY HER MORE MONEY!
Who knew you could be a Billionaire and yet not know the first thing about taxation?