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That doesn't actually follow, since average tax rates increase as you earn more.
by foota 8y ago
That doesn't actually follow, since average tax rates increase as you earn more.
- trhway 8y agoI dont think it's true. Remember Buffet saying that his tax is less than his secretary's? Specifically top 1% average rate is 27% while top 0.001 - 24%.
- bluedevil2k 8y agoHis effective tax percentage he meant. Since he has so many tax write-offs, capital gains distributions and carried interest, he was referring to the taxes he paid divided by the total money he earned. One can assume his secretary had only her income and the standard deduction.
- MR4D 8y agoThat’s mostly irrelevant. If you had a trillion dollars in muni bonds and no other income, your federal tax rate would be zero. (And that’s a constitutional thing, too). The other aspect is long term capital gains rate. Raising that has historically hurt capital formation, which, while it hurts those at the top, creates situations like the late 70’s for the rest of the population.
- wdn 8y agoBuffett said that because he wants other to pay more tax. If he so wants to pay more tax as law requires it, then all he has to do is lobby Washington get rid of the “Dividend Received Deduction” or DRD, which he is the biggest beneficiary. DRD is when a company, in this case Bershire Hathaway, received a dividend payment from a company they owned, Bershire can exempt up to 80% of the dividend from the income tax. I love Buffett dearly and I think he is a great person. But when it come to tax, he is a hypocrite.
- JamesBarney 8y agoThe drd doesn't effect his personal tax rate, it only affects Berthshire Hatheways tax rate.
- Someone1234 8y agoIt doesn't need to "follow." It is simply a fact: https://en.wikipedia.org/wiki/Wealth_inequality_in_the_United_States#Wealth_and_income https://en.wikipedia.org/wiki/Wealth_inequality_in_the_Unite...
- zxcmx 8y agoTax is paid on income. You linked to something about wealth.
- Someone1234 8y agoI linked to an article with a section on Income Inequality as part of the larger topic of Wealth Inequality. Here's a direct quote from that very link: > According to US economist Joseph Stiglitz the richest 1% of Americans gained 93% of the additional income created in 2010.[44][45] A study by Emmanuel Saez and Piketty showed that the top 10 percent of earners took more than half of the country’s total income in 2012, the highest level recorded since the government began collecting the relevant data a century ago.[46] People in the top one percent were three times more likely to work more than 50 hours a week, were more likely to be self-employed, and earned a fifth of their income as capital income.[47] The top one percent was composed of many professions and had an annual turnover rate of more than 25%.[48] The five most common professions were managers, physicians, administrators, lawyers, and teachers.[47] Did you read what I linked or just read the title? There's literally an entire section on the topic of income inequality, but nobody took even the time to read the subsection headers let alone the actual section?
- closeparen 8y agoWealth and income are not the same thing.
- tomnipotent 8y agoThe OP is about income tax, not assets & wealth. Two very different subjects.