The Real Reason Warren Buffett's Taxes are Low

Who gives a crap what his reasons are? And to say he's "bragging" is just stupid!

Good analysis, Peter J Reilly, you blockhead. Buffet has so much money in investments, stocks and such, that if he were to actually total that in, his effective tax rate would be almost nil. That's zero for those who don't know nil. Buffet is not including the appreciation of his share holdings in calculating his effective tax rate.

I would like to see some facts and numbers to put to bed the argument about what percentage one income bracket pays in tax versus another. Give us the total gross income, the taxable income and the taxes paid (less any refund paid or plus any additional tax due at the end of the year). Then we can calculate the percent of tax paid (after income tax returns are figured in) to taxable income. Quote your source of information. Until I see that, I am not buying anyone's comments about how much the rich or anyone else pays in taxes. I've done lots of tax returns and have seen many with $15,000 - $20,000 in income that pay $1500 or so in tax and then get a $6,000 - $8,000 refund due to the Earned Income and Child Tax Credits. The rich are providing that $6000 - $8000 for those with lower incomes.

If you don't sell, you don't have capital gains, so you don't have income to be taxed. Nice if you don't have to sell. So the gauntlet Mr. Buffett has laid down is that Congress should figure out a way to tax assets, like counties charge property taxes.

I'm speechless at how tax wise and yet income foolish that CPA Reilly has shown himself to be. Using Warren Buffet as a model, Reilly turned the greatest advantage the wealthy and very wealthy have over the rest of us on its head in an attempt to deny an obvious fact. The poor and most of the Middle Class can't pick and choose which of our investments to live on this year, defer income, hire CPAs to strategize and avoid taxes, or live on a small to tiny percentage of what we can earn in a year. Nor, do we have huge tax loopholes to exploit. Jeez, most live from paycheck to paycheck, IF they still have a job and a living wage. That's WHY a progressive income tax is desirable. One with no loopholes.

Face it, between the poverty level and making a few hundred thousand per year, individuals and families can increase their standard of living:more and better food, nice and bigger house in a better neighborhood, better and private schools for the kids, etc. But, unless you're a spendthrift and a narcissist showoff, maybe somewhere around 300K/yr the standard of living levels off in the margin by default. (How much can you eat? How expensive a car do you need? How big and plush of a house? Etc) Make 50K, 100K, 200K maybe you spend all or most just like the poor. Make above around 300K per year and blow it: you're a jacka$$ into conspicuous consumption. So, since the surplus will only go into savings and investments and can be looked upon as a blessing conferred by the society that helped you make all that dough, then, maybe above 300K the tax rate should climb steeply going up as high as Steve Jobs, Bill Gates, Warren Buffet, etc.

The wealthy will say it's unfair and will kill business. That's simply not true. Look up historic income tax rates and see that many times the wealthy in America have paid far higher taxes:73% top bracket in 1921 for instance. Business didn't die; it thrived. Quit listening to greedy millionaires and dodgy CPAs and let's not only drop Dubya's tax welfare for the wealthy come December, let's increase taxes considerably above $300, 000 per year no matter how that money gets earned. Anybody who runs offshore to evade taxes gets tried in absentia, banished from the US, their bank accounts/assets frozen and forfeited, businesses and property seized and auctioned. America doesn't need 'fair weather Capitalists" and other ripoff artists to profiteer on our economy.

Magoo ( Buffet AND the author ) should have mentioned this from IRS "The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2010, the maximum capital gains rate for most people is 15%. For lower-income individuals, the rate may be 0%". MOST RICH DON'T EARN AS MUCH OF THEIR INCOME FROM CAPITAL GAINS as Magoo does.

isnt corporate tax different from personal income tax??? If his company is paying him a salary, then the corporate tax would be separate?????

Buffet uses every loophole he can not to pay taxes just as our President uses his office and tax dollars to roam the country campaigning for re-election while he socks away a billion dollars in campain donations in his till. He has alot of nerve pointing fingers at the rich for not paying their fair share while he pays nothing to campaign while others have to spend their campaign monies to spread their word. Every day he spends our tax dollars for his own benefit while it could be put toward the growing debt. Buffet, just like Obama, could do alot more with actions rather than with spouting off with idle empty rhetoric.

Once again a an economics "expert", this time a CPA, that can not comprehend the difference between income and net worth. Or a hole in the ground probably.

Wow, is this the best Forbes could come up with, laughable.

A worker making $35,000 a year is paying a larger percentage out of their individual earning in taxes than someone making $1,000,000 a year is paying out in your individual earnings.
Loopholes! FACT

Even the ultra-far-left Warren Buffett says Obama is wrong and that tax increases should only be for those with a million+ income.

Dear Mr. Buffett,

With all due respect, if you want to pay more taxes then please do it. I am sure that you realize that there is nothing stopping you from paying 60% of your income to the government (is that enough?). Instead of trying to get a mandate that others pay have to pay more, why don't you lead by example and send the IRS an extra check. They will be happy to receive it!

I saw where you where quoted saying that higher taxes do not effect job growth. Really? Again, I know... I thought you were a very smart man. If higher taxes do not effect job growth, then why are so many U.S. companies establishing their businesses in foreign countries? Why are they shifting their growth, and the jobs that come with it, out of the United States? Because the United States of America has the second highest corporate tax rate in the WORLD. The highest is in Japan, and they are planning on reducing their taxes.

In trying to understand how you could possibly make the statements you have made, I have come to a few possible conclusions:

1) You enjoy the publicity you are able to generate by saying things that people do not expect you to say. You know that the media is going to circle around you if you say we should take more money out of the economy and send it to Washington.

2) You enjoy the attention and access to the President of the United States. Maybe not the actual person, but the position.

3) The last conclusion I was able to come to is that you have so much wealth, that you or people you employ would not be affected if you paid higher taxes. In reality, you are "out of touch" with your average business owner, entrepreneur, corporate leader. You are unable to relate to the employer of a small business who would not be able to reinvest as much back into his/her company if they had to pay higher taxes.

Our current president continues to talk about his desire to raise taxes. Just his talking about the future possibity of higher taxes has greatly effected our current job market and economy. Most businesses operate with strategic plans that look to the near future and help adjust current business models. If their is not going to be as much financial capital to reinvest, or higher personel, then they are going to adjust for those possibities today.

I hope that you take the time to read the comments section of Yahoo News. I am looking forward to hearing from you soon!

Love,

Michael Hunt

OMG, is the GOP going to actually try and run on this nonsense?

Better stick with the "mosque-in-NY" theme.

S.Forbes - please give us advices on how to elude taxes!!!

So if this whiner wants to pay more taxes, just make the check out, I'm sure that Obummer will hose it away on anything except fixing the national debt

wow that's why this pos says what he does close these loop holes but the demoncraps wont because these thieves buy the elections for them we need a flat tax an stop the government give aways

This CPA needs to reread the article. What part of "I pay 15% on my income" dont you get. Income is not on his wealth, its his income for 2010. He is not talking about non realized capital gains, he is talking about his income. I guess Mr. Buffet needs to go back to school and figure out what income is. This contributor is a dope. He still paid much less, simply put, most of his income comes from capital gains. Capital gains are a way for the rich to avoid taxation that most others would consider, plain and simple, income.

Well duh, if you hold on to a stock, that means you haven't actually SOLD it yet and therefore haven't actually MADE ANY ACTUAL TAKE HOME MONEY on it yet! You can't take stock into a store (even if it is worth billions of dollars on paper) and buy a flat screen TV with it! Good lord, this writer is an idiot.

Every single one of you rich bashers would do the same thing if you had the means. If you had millions and the brains to go along with it, you would exploit every loophole out there to your advantage. I'm all for getting rid of the exemptions that favor the wealthy, but it's the millionaires in congress that pass the laws, not the private sector millionaires that use them. Let's focus this indignance in the right direction...at those that manipulate the legislature.