Buffet Offers $1 Million If Wealthiest Pay A Higher Tax Rate Than Their Subordinates

jeffrey · #1 (**permalink**) 06-28-2007, 12:46 AM

Buffett said he makes $46 million a year in income and is only taxed at a 17.7 percent rate on his federal income taxes. By contrast, those who work for him, and make considerably less, pay on average about 32.9 percent in taxes - with the highest rate being 39.7 percent.

To emphasize his point, Buffett offered $1 million to the audience member who could show that one of the nation's wealthiest individuals pays a higher tax rate than one of their subordinates.

Buffett*offers Clinton economic policy advice - Jun. 27, 2007

project15 · #2 (**permalink**) 06-28-2007, 06:58 PM

That thread title is very confusing. A buffet is offering $1 million ?

SnoopyCool · #3 (**permalink**) 06-29-2007, 05:15 AM

Jimmy Buffet?

PrincessPerky · #4 (**permalink**) 06-29-2007, 05:56 AM

heh on the title.
and just last night husband and I were talking about how the tax percent is all screwed up, none for the bottom, high for the middle, and less for the upper.

Should be cross the board same IMO.

jIM_Ohio · #5 (**permalink**) 06-29-2007, 06:32 AM

even if the overal % is less, 17% of 46 million is more taxes in one year than many of us will pay in a lifetime.

MonkeyMama · #6 (**permalink**) 06-29-2007, 06:37 AM

Oh yeah I agree - no one will win.

I usually notice that the general impression out there is if you make six figures you are rich and get all the tax breaks in the world. SO not true.

BUT once you start hitting the millions, you can buy your own private tax loopholes. It's really sickening to me when government tries to sell reform to the upper middle class when the billion dollar companies get the tax loopholes and are the ones truly getting out of their fair share of tax. Plus the fact is the more money you make the more you can pay accountants to help you with elaborate tax savings strategies. I used to work at a large CPA firm that sold tax loopholes basically. Now with smaller bean clients I don't see that much, but it amazes me some of the tax laws that were bought for specific groups of people. We have some clients who own horses and they get bizarre tax breaks meant for a small group of wealthy horse breeders. There have been tax laws in place for the favor of one multi-billion dollar company here and there. They got friends in Congress to sneak these through.

In Buffet's example it sounds like pretty wealthy subordinates (30%+ tax rate) are paying some big taxes while the billionaire doesn't. Yeah, doesn't surprise me in the least. The people on the assembly line, they are paying a lower tax rate though, no doubt. Just to point that out.

LivingAlmostLarge · #7 (**permalink**) 06-29-2007, 09:16 AM

I pointed that out to someone who felt that her and her hubby were paying more they make like $300k/year. Sure she pays a lot, but how can she think everyone whose rich pays a lot? My dad's accountant said business owners who make a lot can write off a lot. Also when you make 7 figure incomes there are a lot of ways to shelter it and get paid so you don't pay taxes on it.

At DH's company he got restricted stock. However if you hold it 2 years it's tax free! He got a letter stating this with the tax law code showing how it's legit. So when upper management gets their bonus say $500k over 4 years, if they hold it for 2 year they get all that income without paying a penny of tax on it.

And you're telling me that the really rich pay a lot? No way, there are way too many loopholes like that one.

PrincessPerky · #8 (**permalink**) 06-29-2007, 09:38 AM

personally I don't care if Richie Rich pays 1M while Joe broke pays 1k, and Amy Average pays 10K....if that is 10% I am all for it..after all Richie keeps 9m, and Joe keeps 9K, and Amy keeps 90K (the other 90%)*

course you know Joe isn't going to pay that 1K the govt sends it back (like when you make only 10K one is going to help much?)

And Richie only pays maybe 10K cause he has horses or donates 30K (saving 40K in taxes..umm why?)

The real trouble arises with Amy she is stuck..has to pay all 10K, no tax breaks for the average..if she donated 10K she might get herself down in owing, but not like Richie. (cause she doesn't have 30K left in the budget to donate!)

I have heard two different math quotes, one saying if we all pitched in it would cost less than 1K to pay the programs of US, and other saying we would all have to pay 100K in taxes to afford all the government spending. I would like one day to know which is right.

*numbers oversimplified cause I am lazy.