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News Flash: Warren Buffet pays more in percentage terms than you do: http://econlog.econlib.org/archives/2011/02/distribution_of_1.html http://econlog.econlib.o

by webXL 16y ago

News Flash: Warren Buffet pays more in percentage terms than you do: http://econlog.econlib.org/archives/2011/02/distribution_of_1.html http://econlog.econlib.org/archives/2011/02/distribution_of_... And he gives a lot more away to charity in percentage terms, too!

jshen 16y ago
I pay way more than 17.7% of my income. http://www.washingtonpost.com/wp-dyn/content/article/2007/06/27/AR2007062700097.html http://www.washingtonpost.com/wp-dyn/content/article/2007/06... Warren E. Buffett was his usual folksy self Tuesday night at a fundraiser for Sen. Hillary Rodham Clinton (D-N.Y.) as he slammed a system that allows the very rich to pay taxes at a lower rate than the middle class. Buffett cited himself, the third-richest person in the world, as an example. Last year, Buffett said, he was taxed at 17.7 percent on his taxable income of more than $46 million. His receptionist was taxed at about 30 percent. Buffett said that was despite the fact that he was not trying to av
- webXL 16y ago
  If Warren Buffet only paid 17.7% of his income in '06, then other top-1%'ers pay a lot more than 31.2%! (see CBO Effect Tax Rates 2006: http://www.cbo.gov/publications/collections/tax/2009/effective_rates.pdf http://www.cbo.gov/publications/collections/tax/2009/effecti...) Warren Buffet uses tax loopholes (perfectly legal) to keep more of his money, which he plans to give away to various charities by the time he dies. The solution is to close loopholes and encourage more charity among the super rich, so that the government doesn't need to do as much charity when it can't afford to, and the wealthy are still able to create jobs by not having an effective tax rate much higher than 31%.
  - jshen 16y ago
    They do pay less than us, and it's that way because they make a lot of their money as capital gains which are taxed at a rate far lower than the taxes we pay on income. The forbes 400 pays a significantly lower tax rate than I do as programmer. That's not debatable, it's a simple fact. I think they should pay at least the same rate as I do, don't you? http://www.forbes.com/forbes/2007/1126/042b.html http://www.forbes.com/forbes/2007/1126/042b.html
    - webXL 16y ago
      No, they do not pay less! The top 1% has an average effective tax rate of 32% -- much higher than yours! This includes capital gains taxes! It's whatever amount they send to the IRS divided by the amount they receive as income (including proceeds from stock transactions). Methodolgy CBO's analysis of effective tax rates assumes that households bear the burden of the taxes that they pay directly, such as individual income taxes (including taxes on interest, dividends and capital gains) and employees' share of payroll taxes. The analysis assumes--as do most economists--that employers' share of payroll taxes is passed on to employees in the form of lower wages than would otherwise be paid. Therefore, the amount of those taxes is included in employees' income, and the taxes are counted as part of employees' tax burden. CBO estimates payroll taxes and individual income taxes, including refundable tax credits, with a tax "calculator" that applies the tax law for the relevant year to the tax return data from the SOI. Excise taxes are assumed to fall on households according to their consumption of taxed goods (such as tobacco and alcohol). Excise taxes that affect intermediate goods, which are paid by businesses, are attributed to households in proportion to their overall consumption. CBO assumes that each household spends the same on taxed goods as similar household with comparable income in the Consumer Expenditure Survey. Far less consensus exists about how to attribute corporate income taxes (and taxes on capital income generally). In this analysis, CBO assumes that corporate income taxes are borne by owners of capital in proportion to their income from interest, dividends, capital gains, and rents. Over the long term, however, some models suggest that at least part of the burden falls on labor income. http://www.cbo.gov/publications/collections/tax/2009/methodology.pdf http://www.cbo.gov/publications/collections/tax/2009/methodo... "taxes that they pay directly, such as individual income taxes (including taxes on interest, dividends and capital gains)"
      - jshen 16y ago
        The CBO includes corporate taxes as a tax on shareholders income. The shareholders don't actually pay this themselves and one can make a strong case that the cost of those taxes aren't entirely borne by shareholders. Warren Buffet's tax rate is lower than his secretary's, and no one in the forbes 400 took him up on his challenge to show him that it's any different for them.

by webXL 16y ago

jshen 16y ago

I pay way more than 17.7% of my income. http://www.washingtonpost.com/wp-dyn/content/article/2007/06/27/AR2007062700097.html http://www.washingtonpost.com/wp-dyn/content/article/2007/06... Warren E. Buffett was his usual folksy self Tuesday night at a fundraiser for Sen. Hillary Rodham Clinton (D-N.Y.) as he slammed a system that allows the very rich to pay taxes at a lower rate than the middle class. Buffett cited himself, the third-richest person in the world, as an example. Last year, Buffett said, he was taxed at 17.7 percent on his taxable income of more than $46 million. His receptionist was taxed at about 30 percent. Buffett said that was despite the fact that he was not trying to av

webXL 16y ago
If Warren Buffet only paid 17.7% of his income in '06, then other top-1%'ers pay a lot more than 31.2%! (see CBO Effect Tax Rates 2006: http://www.cbo.gov/publications/collections/tax/2009/effective_rates.pdf http://www.cbo.gov/publications/collections/tax/2009/effecti...) Warren Buffet uses tax loopholes (perfectly legal) to keep more of his money, which he plans to give away to various charities by the time he dies. The solution is to close loopholes and encourage more charity among the super rich, so that the government doesn't need to do as much charity when it can't afford to, and the wealthy are still able to create jobs by not having an effective tax rate much higher than 31%.
- jshen 16y ago
  They do pay less than us, and it's that way because they make a lot of their money as capital gains which are taxed at a rate far lower than the taxes we pay on income. The forbes 400 pays a significantly lower tax rate than I do as programmer. That's not debatable, it's a simple fact. I think they should pay at least the same rate as I do, don't you? http://www.forbes.com/forbes/2007/1126/042b.html http://www.forbes.com/forbes/2007/1126/042b.html
  - webXL 16y ago
    No, they do not pay less! The top 1% has an average effective tax rate of 32% -- much higher than yours! This includes capital gains taxes! It's whatever amount they send to the IRS divided by the amount they receive as income (including proceeds from stock transactions). Methodolgy CBO's analysis of effective tax rates assumes that households bear the burden of the taxes that they pay directly, such as individual income taxes (including taxes on interest, dividends and capital gains) and employees' share of payroll taxes. The analysis assumes--as do most economists--that employers' share of payroll taxes is passed on to employees in the form of lower wages than would otherwise be paid. Therefore, the amount of those taxes is included in employees' income, and the taxes are counted as part of employees' tax burden. CBO estimates payroll taxes and individual income taxes, including refundable tax credits, with a tax "calculator" that applies the tax law for the relevant year to the tax return data from the SOI. Excise taxes are assumed to fall on households according to their consumption of taxed goods (such as tobacco and alcohol). Excise taxes that affect intermediate goods, which are paid by businesses, are attributed to households in proportion to their overall consumption. CBO assumes that each household spends the same on taxed goods as similar household with comparable income in the Consumer Expenditure Survey. Far less consensus exists about how to attribute corporate income taxes (and taxes on capital income generally). In this analysis, CBO assumes that corporate income taxes are borne by owners of capital in proportion to their income from interest, dividends, capital gains, and rents. Over the long term, however, some models suggest that at least part of the burden falls on labor income. http://www.cbo.gov/publications/collections/tax/2009/methodology.pdf http://www.cbo.gov/publications/collections/tax/2009/methodo... "taxes that they pay directly, such as individual income taxes (including taxes on interest, dividends and capital gains)"
    - jshen 16y ago
      The CBO includes corporate taxes as a tax on shareholders income. The shareholders don't actually pay this themselves and one can make a strong case that the cost of those taxes aren't entirely borne by shareholders. Warren Buffet's tax rate is lower than his secretary's, and no one in the forbes 400 took him up on his challenge to show him that it's any different for them.