PLYMCO_PILGRIM
Gold Member
Please help me out here.
I thought I read that his secretary made 60K a year. Did I read that wrong ?
If that is the case, she makes less than he does.
However, she is only paying income taxes.
He is paying income taxes on at least 100K (is this correct) and maybe more. If this is the case, then he is probably paying at a higher rate (on just his personal income taxes).
Does anyone disupute that ?
Then, if you take the taxes he pays on other things (capital gains) is at a much lower rate. If you combine all his taxes against income (personal + capital gains), and divide it into the taxes he pays....the "net" rate would be lower than his secretary.
So..to summarize:
1. Buffet makes more than his secretary (taxable income).
2. Buffet pays more personal income taxes and at a higher rate than his secretary.
3. Buffet pays a lot of capital gains tax which is at a lower rate than his secretary.
4. Buffet likely pays a bunch more in taxes (absolute dollars) than his secretary.
5. Buffet's net tax rate is lower than his secretary if you look at all his "income" (which includes gains).
6. Some people have a big issue with Rush Limbaugh (and they also seem to think that all conservatives support Rush ?). That is just a guess.
Setting Rush aside, it seems like the argument is that it is unfair that even though Buffet makes a whole lot more (however he makes it), that his net tax rate is lower than his secretary's.
Does that sum it up ?
I see what you are saying.
Do you possibly have links to all the data involved in your post so we can physically verify this instead of postulating it? I'm wondering how much more in excise, property, fuel, and sales taxes buffet ends up paying too....we have to take all that into account.
Heck if buffet buys a 100,000 car at a 5% sales tax guess what, we have to add that percentage's average into the total
You see where I'm going too right?
Lets just talk about income tax. She makes 60k, he makes 100k, who pays more on their income in total and as a percentage of those two? Obviously buffet.
Now if we take what your thinking into account the percentage, overall, for buffet might be lower but what about his total burden in dollars? That would still be a lot higher.
I dunno, it all just strikes me as dishonest the way Buffet and Obama portrayed the whole thing.
I see where you are going. And I certainly agree. Of course, she pays sales tax too.
But, the real point is what you stated before.......if he makes more in income and it isn't sheltered, he pays. more.
It isn't my thinking.....I was reflecting what I am reading. Overall, he probably pays a great deal more in terms of absolute dollars. The real question is why is the capital gains tax lower than the marginal tax rate for someone making 60 K. I think the answer is that it is because it is on investments which supposedly stimulate the economy, but I'll let others answer. I am not arguing the point, I was trying to see if I understood the argument correctly.
BTW: You asked for links, but I am taking information from other links on this thread.
And, in the end, it is not a very healthy discourse if people are using his secretary to make this kind of point. Why not be honest about what is going on in terms of taxes. Separate his income tax from his capital gains. They are two different things and if we don't like it...it should change (not saying it should).
well said