The assumptions and statements made about taxes the rich pay are
But nearly all millionaires still paid a rate that is more than twice
the 8.9% average rate paid by those earning between $50,000 and $100,000,
and more than three times the 7.2% average rate paid by those earning less
Clearly Buffet things he can deal with how to spend his money better
than the government, as he states about his charitable foundation.
Buffet is not about increasing his tax rate, just the taxes others
pay. This seems quite despicable.
IF he thinks the tax rates are too low, there is NOTHING preventing him
from paying more.
A good sign of elitism is for those in power to
attempt to punish those who became successful in a just manner and
reward those who did not.
So here we are back at the same old political stand, though even Mr.
Obama concedes that today those he routinely calls "millionaires and
billionaires" pay at least some tax. The President's complaint, echoing
billionaire Warren Buffett, is that too many billionaires pay a lower
rate than regular salary earners. So even as he endorsed tax reform in
general yesterday, Mr. Obama insisted that one of his reform
"principles" is that people who make more than $1 million must pay a
higher tax rate than middle-class earners.
There's one small problem: The entire Buffett Rule premise is false,
as the nearby table shows. In 2008, the last year for which such data
are available, the IRS reports that those who made more than $1 million
in adjusted gross income paid an average income tax rate of 23.3%.
That's slightly lower than the 24.1% rate paid by those making
between $500,000 and $1 million, probably because the richest are like
Mr. Buffett and earn more from capital gains and dividends.
The rate for
a relative handful of the rich—400 people—fell to 18%, the modern
equivalent of Barr's Gang of 21.
But nearly all millionaires still paid
a rate that is more than twice the 8.9% average rate paid by those
earning between $50,000 and $100,000, and more than three times the 7.2%
average rate paid by those earning less than $50,000.
The larger point
is that the claim that CEOs are routinely paying lower tax rates than
their secretaries is Omaha hokum.
If Mr. Obama really wants all of these people to pay even more in
taxes, there are only two ways to do so. One is to raise tax rates on
capital gains, dividends and other investment income that is taxed at
15% and represents a great deal of income for the wealthy. This is
probably Mr. Buffett's tax secret, though to our knowledge he hasn't
released his returns to the public.
I have six major issues with Buffett.
1) He INTENTIONALLY does not have Berkshire pay him a salary. If he
did, his tax consequence would surely be at the highest income tax rate
on whatever that salary would be. It is HIS CHOICE not to take a salary,
therefore HE is responsible for his own lower tax rate.
2) The taxes that Berkshire pays are truly mostly taxes paid by HIM!
It is interesting how he omits Berkshire's tax liability when discussing
his tax liability.
3) IF the US government were such a great and competent spender of
money, why does he (and many others, including Gates) start foundations?
The benefit to them is 1) tax reductions and 2) THEY get to decide where
that money goes! So, inefficient government agencies decide where your
and my money goes, but that isn't good enough for Buffett and Gates! THEY want to determine to whom their money goes. Boy, I would like to
decide that too!
4) Owning insurance companies that sell insurance to pay for death
taxes is a definite conflict of interest. It behooves Buffett to keep
the tax structure for estate/death taxes as high as possible, so that
his companies can sell more insurance policies.
6) IF he thinks the tax rates are too low, there is NOTHING
preventing him from paying more. He DOES NOT have the right to compel me
to pay more, but has the right to pay as much as he wants to. Liberals
always want to spend someone else's money, and then take credit..."look
what I did for you".
Liberals always want to spend someone else's money, and then take credit..."look what I did for you".