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While I like the concept of this, the problem comes in when the richest people don't actually get a wage, or they get paid far less than their actual income. Th

by daemin 17y ago

While I like the concept of this, the problem comes in when the richest people don't actually get a wage, or they get paid far less than their actual income. The rest of their wealth and income comes from dividends and owning companies, which are not taxed the same way. IIRC there was an article from Warren Buffet in which he ponders why he pays less tax than his secretary, even though he earns far more than her.

anamax 17y ago
> The rest of their wealth and income comes from dividends and owning companies, which are not taxed the same way. That doesn't imply that they aren't taxed. (In the US, dividends come out of a company's post-tax profits, so they've already been taxed. Plus, there's an off-again/on-again tax on dividends paid by the recipients.) > IIRC there was an article from Warren Buffet in which he ponders why he pays less tax than his secretary, even though he earns far more than her. Buffet doesn't "pay less tax than his secretary". He pays taxes at a lower rate on some of his income than she pays on her wages. Buffet is fond of advocating taxes on other people, using himself as an example even though he'll never pay the tax in question. For example, he pushes the estate tax, never mentioning that his estate is set up so it won't pay a dime. He just happens to own companies that make a lot of money off of people who will owe estate taxes. Even if that weren't true, using Buffet as an example is a bad idea. He has the money to get around almost every tax law. Laws supposedly aimed at him end up hitting other people. It's also dishonest - politicians talk about going after the "super rich", but they end up passing laws that hit folks a couple of rungs down. This is understandable, there's more total money a couple of rungs down and those folks don't have the political pull to do anything about it, but .... Note that the super-rich get to decide where they'll be taxed. Buffet can take his income elsewhere. If he does, his US secretary loses her job.
gaius 17y ago
Ol' Warren is perfectly free to sack his tax accountant and write a cheque for whatever he feels he owes to Uncle Sam. Weirdly, he has not done so.

by daemin 17y ago

anamax 17y ago

> The rest of their wealth and income comes from dividends and owning companies, which are not taxed the same way. That doesn't imply that they aren't taxed. (In the US, dividends come out of a company's post-tax profits, so they've already been taxed. Plus, there's an off-again/on-again tax on dividends paid by the recipients.) > IIRC there was an article from Warren Buffet in which he ponders why he pays less tax than his secretary, even though he earns far more than her. Buffet doesn't "pay less tax than his secretary". He pays taxes at a lower rate on some of his income than she pays on her wages. Buffet is fond of advocating taxes on other people, using himself as an example even though he'll never pay the tax in question. For example, he pushes the estate tax, never mentioning that his estate is set up so it won't pay a dime. He just happens to own companies that make a lot of money off of people who will owe estate taxes. Even if that weren't true, using Buffet as an example is a bad idea. He has the money to get around almost every tax law. Laws supposedly aimed at him end up hitting other people. It's also dishonest - politicians talk about going after the "super rich", but they end up passing laws that hit folks a couple of rungs down. This is understandable, there's more total money a couple of rungs down and those folks don't have the political pull to do anything about it, but .... Note that the super-rich get to decide where they'll be taxed. Buffet can take his income elsewhere. If he does, his US secretary loses her job.

gaius 17y ago

Ol' Warren is perfectly free to sack his tax accountant and write a cheque for whatever he feels he owes to Uncle Sam. Weirdly, he has not done so.