Taxing Warren Buffet's Rich People

Warren Buffett just told us again that taxes should be raised on people like him.  Here are his words, from the New York Times. "Last year my federal tax bill - the income tax I paid, as well as payroll taxes paid by me and on my behalf - was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income - and that's actually a lower percentage than was paid by any of the other 20 people in our office." The math says his taxable income was $39,877,839. Let's go to the IRS tables. Mr. Buffett is in the highest group listed: those with incomes over $10 million. There were 8,274 such tax filers in 2009. That is the top 0.006% of all tax filers. The average federal income tax for filers in that group was 26.3%, well over the 17.4% Mr. Buffett paid. Moreover, Mr. Buffett included payroll taxes when calculating his 17.4%, so his income tax rate was even less than that. Somehow, Warren Buffet not only paid lower tax rates than his staff; he paid...(Read Full Post)