The Warren Buffett's Secretary Issue

Discussion in 'Politics' started by boedicca, Sep 19, 2011.

  1. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Why is it, that when pointing out that Warren Buffett's (legendary, and ostensibly long suffering & exploited) Secretary pays a higher tax rate than does Warren, none of the Big Government types ever come to the conclusion that her tax rate is Too High?
     
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  2. Quantum Windbag
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    Quantum Windbag Gold Member

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    Because taxes are never too high, they are always too low.
     
  3. Ravi
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    Ravi Diamond Member

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    It is too high. And his is too low.

    Everyone should pay the same percentage in income tax.
     
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  4. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Partial thanks to Ravi. I agree that hers is too high.

    Buffett's is only too low in the sense that Berkshire Hathaway is $1B in arrears on paying its taxes, which makes Buffett an enormous hypocrite, but not undertaxed. With a marginal corporate tax rate of 35% (federal), he would already have been taxed once on the return on his capital (if BH had paid the taxes). His cap gains and/or dividend taxes are the second time the same money is taxed.
     
  5. Maple
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    Maple Senior Member

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    What Buffett is not telling you is that he has already paid income taxes on his income, he now lives off of the dividends and capitol gains and they are taxed at a lower rate because he has already paid taxes on the money that he has invested. Of course, he is 88, and might have forgotten that he has already paid taxes on that, but then there is this.

    Warren 'Raise My Taxes' Buffett's Company May Owe IRS $1 Billion | NewsBusters.org
     
  6. Ravi
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    Ravi Diamond Member

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    Not getting your point....
     
  7. del
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    del BANNED

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    so only hypocrites dispute their tax bills?

    good to know :thup:
     
  8. del
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    del BANNED

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    nothing there to get.
     
  9. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Only to people who cannot connect the dots.

    Warren Buffet pays himself only $100,000 in salary. His secretary makes $60,000. Not that big of a difference. If his secretary is married, it's likely she and her husband have a combined regular income that is higher than what Buffett pays himself. He shields the rest of his wealth in non-realized cap gains and charitable tax-exempt trusts. His company is $1B in arrears in taxes while he lobbies for Other People to pay more.

    That is hypocrisy. The Treasury already has a program to accept donations to retire the debt. If he really believed he should pay more, he could quite easily donate to this program without pushing for a change in the tax rates for others.
     
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  10. edthecynic
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    edthecynic Censored for Cynicism

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    The DittoTards are in full parrot mode! :rofl::lmao:

    As anyone who has stock knows, you don't pay cap gains taxes on the money you use to purchase the stock with. You only pay cap gains taxes on the increase over your purchase price for the stock. That increase has never been taxed before, and grows and grows tax free, like an unlimited IRA with no penalties, until it is "realized" by selling it.

    This is the thing, CON$ervative know-it-all parrots are the stupidest people on Earth.

    September 19, 2011
    RUSH: The whole argument for the Buffett Rule is Buffett himself says it's not fair that he's paying a lower tax rate on his capital gains and dividend income than his secretary pays on her earned income. It just isn't fair. The only problem is that is completely untrue. It's a great sounding argument, comes together as a nice sound bite, but it is untrue. Buffett is paying a tax in his dividend and capital gains on money that's already been taxed once before as income. So you have to add that first tax rate to the second lower rate on capital or dividends to find out what somebody's actually paying on it.

    RUSH: The "unfairness" is the rate the secretary pays! You're comparing income versus capital gains and dividend rates. Now, when Buffett invests money in a stock and the stock shows a profit and he declares it, he'll pay 15% as a capital gains rate. But what money is he investing? He's investing after-tax dollars he's already paid his secretary's tax rate on. It's not that Warren Buffett somehow (or every rich person) has a stash of money that somehow they get to play with that's only taxed at 15%, and that the secretary and other people making $50,000 a year don't have that stash of money and don't have that loophole. There's no "loophole" here! There's no "loophole" that says Warren Buffett only has to pay 15% and his secretary has to pay whatever her rate is.

    I don't even know. Thre's no loophole there. There's just a rate of taxation on capital gains income, investments -- you take a risk -- verses earned income, salary and wages and what have you; independent contractor income. My point is that the money Warren Buffett uses to buy stock or invest in companies is already after-tax dollars. It's already money he's made that he has already paid his income tax rate on. This is a flat-out lie, folks. It's a flat-out, total, purposeful misrepresentation.
     

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