Why is that Buffett only get taxed ~15%, while his secretary tazed ~30% while making a lot less than he does? thank you!
2007-09-24 02:12:54 · 4 answers · asked by Tsu-Fan C 1 in Business & Finance ➔ Taxes ➔ United States
Buffet is subject to the same tax tables as his secretary is on all W-2'd wages and many other of his dealings.
The 15% only applies to some specific finacial dealings like selling a stock you have owned for more than 2 years.
Our tax laws are way too complex for most of us to understand fully, but to say he only is taxed at 15% is a gross understatement of the facts.
2007-09-24 02:22:09 · answer #1 · answered by Gem 7 · 2⤊ 0⤋
His salary is only $100k per year. Filing a joint return with his wife, his total tax liability on that is probably not much more than 15%. Most of his income is in the form of capital gains which are taxed at 15%. If his secretary pays a net of 30%, his or her salary is probably much higher than his.
2007-09-24 08:08:56 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Most of his income - probably a few million annually - is from stock dividends and gains only taxed at 15%. His small salary is taxed at 30% like her small salary. I agree this is not fair.
2007-09-24 07:23:43 · answer #3 · answered by spicertax 5 · 0⤊ 0⤋
1. Buffett's income is probably mostly dividends and capital gains; his secretary's income is probably mostly salary or wages.
2. Buffett gave more to charity.
2007-09-24 08:48:54 · answer #4 · answered by StephenWeinstein 7 · 0⤊ 1⤋