4 ms·

Lets not forget the rebuttal, too. http://www.forbes.com/sites/paulroderickgregory/2012/01/25/warren-buffetts-secretary-likely-makes-between-200000-and-500000y

by c3534l 10y ago

Lets not forget the rebuttal, too. http://www.forbes.com/sites/paulroderickgregory/2012/01/25/warren-buffetts-secretary-likely-makes-between-200000-and-500000year/#3e547f7b18b8 http://www.forbes.com/sites/paulroderickgregory/2012/01/25/w... Edit: maybe that source isn't as good as I remember, but other sources seem suspicious over the factual accuracy of Buffet's claims. http://www.politifact.com/truth-o-meter/article/2011/sep/21/does-secretary-pay-higher-taxes-millionaire/ http://www.politifact.com/truth-o-meter/article/2011/sep/21/... http://www.factcheck.org/2011/10/shes-no-buffetts-secretary/ http://www.factcheck.org/2011/10/shes-no-buffetts-secretary/

throwawaywtf 10y ago
and how exactly is that ad-hominem attack a rebuttal?
kbenson 10y ago
Buffet himself declares that he pays a 17.4 percent rate on taxable income. His staff, like Bosanek, pay an average of 34 percent. The IRS publishes detailed tax tables by income level. The 2009 results show that the average taxpayer paying Buffet’s 17.4 rate earns an adjusted gross income between $100,000 and $200,000. But an average taxpayer in Bosaneck’s rate (after downward adjustment for payroll taxes) earns an adjusted gross income of $200,000 to $500,000. Therefore Buffett must pay Debbie Bosanke a salary well above two hundred thousand. Is it me, or does that not make any sense? The average tax payer of that percentage makes that amount, therefore she must make that amount? Am I supposed to believe this man doesn't know how averages work? Because the alternative is he's being very disingenuous.
- djrogers 10y ago
  The way the progressive tax rates work in the US, you truly have to get to a pretty high level of adjusted gross income to average 34%. In 2011 the highest tax bracket was 35%, so you couldn't even pay 34% until you earned $379,151 or more. Given that you'd only pay 35% tax on the money earned above $379,151, so it'd take a pretty darned high income to bring your total tax rate up to 34%.
  - kbenson 10y ago
    For federal taxes, yes. Was there a distinction by Buffet that he was referring to her federal tax burden, and not her combined federal and state burden? Nebraska's and New York (the places I figure she's likely to live/work out of) both seem to have state income tax rates between 6-7%. It's significantly easier to hit the 28% federal tax rate.
    - shostack 10y ago
      California tax payer here--FML.
      - lg 10y ago
        don't forget NYC wage tax...
        kbenson 10y ago
        Sheesh, the worksheet[1] to compute your tax burden if you make more than $106k is annoying. I was just looking for an algorithm of some sort. From the under $106k table, it looks to be about 5%. That plus NY state taxes seems to put it on par with CA as a whole. That said, San Francisco appears to have an additional 1.5% flat income tax rate, which can raise the tax rate for high earners (well over $200k) in SF to close to 15% for combined state and local taxes. 1: https://www.tax.ny.gov/pdf/current_forms/it/it201i_nys_tax_computation_wkshts.pdf https://www.tax.ny.gov/pdf/current_forms/it/it201i_nys_tax_c...
    - unprepare 10y ago
      I live in Michigan and i took home 66% of my gross income in 2015. I made under 60k.
- tim333 10y ago
  It was nonsense. "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. "
ikeboy 10y ago
http://goingconcern.com/post/everybody-relax-warren-buffetts-secretary-not-making-six-figures http://goingconcern.com/post/everybody-relax-warren-buffetts...
- readams 10y ago
  Except that it doesn't explain how somebody who makes $60k could be taxed at 30%. That's just not how taxes work. It doesn't work even if he's only talking about marginal tax rates, and that would also mean he's switching from total tax rate for himself to marginal tax rate for his secretary. So unless his secretary is sending in extra voluntary donations, it's hard to to imagine how both of these things can be true.
  - evunveot 10y ago
    He might be including the employer's share of FICA tax. If you're single and your AGI is $60,000, your taxable income is $49,700 (or lower, if you itemize deductions). You'll pay $8218.75 in Federal income tax, $3081.40 in social security, and $720.65 in Medicare, for a total of $12020.80 (24.2%). If you include the employer share of social security and Medicare, it comes out to $15,822.85 (31.8%). He probably should have mentioned it if that's what he really did, but those taxes are real. Ask someone who's self-employed.
  - unprepare 10y ago
    I made under 60k in 2015, from a single job. I took home 66% of my gross income.

by c3534l 10y ago

throwawaywtf 10y ago

and how exactly is that ad-hominem attack a rebuttal?

kbenson 10y ago

Buffet himself declares that he pays a 17.4 percent rate on taxable income. His staff, like Bosanek, pay an average of 34 percent. The IRS publishes detailed tax tables by income level. The 2009 results show that the average taxpayer paying Buffet’s 17.4 rate earns an adjusted gross income between $100,000 and $200,000. But an average taxpayer in Bosaneck’s rate (after downward adjustment for payroll taxes) earns an adjusted gross income of $200,000 to $500,000. Therefore Buffett must pay Debbie Bosanke a salary well above two hundred thousand. Is it me, or does that not make any sense? The average tax payer of that percentage makes that amount, therefore she must make that amount? Am I supposed to believe this man doesn't know how averages work? Because the alternative is he's being very disingenuous.

djrogers 10y ago
The way the progressive tax rates work in the US, you truly have to get to a pretty high level of adjusted gross income to average 34%. In 2011 the highest tax bracket was 35%, so you couldn't even pay 34% until you earned $379,151 or more. Given that you'd only pay 35% tax on the money earned above $379,151, so it'd take a pretty darned high income to bring your total tax rate up to 34%.
- kbenson 10y ago
  For federal taxes, yes. Was there a distinction by Buffet that he was referring to her federal tax burden, and not her combined federal and state burden? Nebraska's and New York (the places I figure she's likely to live/work out of) both seem to have state income tax rates between 6-7%. It's significantly easier to hit the 28% federal tax rate.
  - shostack 10y ago
    California tax payer here--FML.
    - lg 10y ago
      don't forget NYC wage tax...
      - kbenson 10y ago
        Sheesh, the worksheet[1] to compute your tax burden if you make more than $106k is annoying. I was just looking for an algorithm of some sort. From the under $106k table, it looks to be about 5%. That plus NY state taxes seems to put it on par with CA as a whole. That said, San Francisco appears to have an additional 1.5% flat income tax rate, which can raise the tax rate for high earners (well over $200k) in SF to close to 15% for combined state and local taxes. 1: https://www.tax.ny.gov/pdf/current_forms/it/it201i_nys_tax_computation_wkshts.pdf https://www.tax.ny.gov/pdf/current_forms/it/it201i_nys_tax_c...
  - unprepare 10y ago
    I live in Michigan and i took home 66% of my gross income in 2015. I made under 60k.
tim333 10y ago
It was nonsense. "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. "

ikeboy 10y ago

http://goingconcern.com/post/everybody-relax-warren-buffetts-secretary-not-making-six-figures http://goingconcern.com/post/everybody-relax-warren-buffetts...

readams 10y ago
Except that it doesn't explain how somebody who makes $60k could be taxed at 30%. That's just not how taxes work. It doesn't work even if he's only talking about marginal tax rates, and that would also mean he's switching from total tax rate for himself to marginal tax rate for his secretary. So unless his secretary is sending in extra voluntary donations, it's hard to to imagine how both of these things can be true.
- evunveot 10y ago
  He might be including the employer's share of FICA tax. If you're single and your AGI is $60,000, your taxable income is $49,700 (or lower, if you itemize deductions). You'll pay $8218.75 in Federal income tax, $3081.40 in social security, and $720.65 in Medicare, for a total of $12020.80 (24.2%). If you include the employer share of social security and Medicare, it comes out to $15,822.85 (31.8%). He probably should have mentioned it if that's what he really did, but those taxes are real. Ask someone who's self-employed.
- unprepare 10y ago
  I made under 60k in 2015, from a single job. I took home 66% of my gross income.