How can Warren Buffett afford paying a whopping 17.7% income tax on his $46 million income due to US tax code?

Question

"Buffett cited himself, the third-richest person in the world, as an example. Last year, Buffett said, he was taxed at 17.7 percent on his taxable income of more than $46 million. His receptionist was taxed at about 30 percent."
http://www.washingtonpost.com/wp-dyn/content/article/2007/06/27/AR2007062700097.html

What should the GOP do to relieve more of this undue burden from the shoulders of the rich?

ALSO, what percentage did a person making $75K have to pay for 2006?

Mr Buffett said that he was taxed at 17.7 per cent on the $46 million he made last year, without trying to avoid paying higher taxes, while his secretary, who earned $60,000, was taxed at 30 per cent.
http://business.timesonline.co.uk/tol/business/money/tax/article1996735.ece

ssp0002 (below) I guess neo-cons are to stressed to click on the link that => I PROVIDED <=. Thx for the update.

Answer 1

I pay about 27% in taxes on my income, which is about 60,000 a year. And the LION'S SHARE of that goes to federal taxes. The money I donated this year to qualifying institutions (like Michigan Radio and Huron Valley Humane Society) will take care of the majority of taxes I will pay to the state. I am interested to see what my taxes will look like next year, as I got married this year. I am assuming my tax rate will lower, proving once again that society is set up to punish women for being educated and employed, and reward them for having children and getting married. I will keep you posted...:)

Answer 2

But doesnt Warren Buffett also create alot of jobs? What does he do with the money he is not taxed on? Does he keep it under a mattress, or does he invest it which again creates more jobs, and help the economy out? I know he gives a great share of his wealth to charity also, would you rather him pay taxes. I would rather have Warren Buffett in charge of his own money, rather than our government, they have proved time and time again, Dem or Rep, that they dont know how to manage money well. Obviously Buffett does. Also I would like to know what tax bracket his receptionist is in to get taxed that much in federal taxes? I dont even get taxed that much, and I am single, no dependents, and make really good money.

Answer 3

So Warren Buffett contributed over 8 million in tax money while the receptionist contributed 18 thousand. Buffett contributes so much to charity and endowments his tax rate is much lower. He probably pays more than 30 percent of his income just a lto of that is to charities not in tax money.

Answer 4

Instead of picking out just one paragraph that supports your position, why didn't you post the entire article. Warren Buttet's point is that he feels it is unfair that his receptionist pays a higher percentage then he does and it is that what he considers unfair. Other excepts from the same article:

Buffett said that was despite the fact that he was not trying to avoid paying higher taxes. "I don't have a tax shelter," he said. And he challenged Congress and his audience to see what the people who "clean our offices" are taxed, to loud applause.

Buffett said that he and other privileged Americans must do more to help the less fortunate

See, I can cut and paste those paragraphs which support my position as well.

Chi Guy: I obvioulsy read the article, and just like you, chose those paragraphs that supported my position. Sorry, didn't mean to make it sound so terse.

Answer 5

That is still a highly progressive tax rate.

I find it absurd that anyone, no matter how rich, is paying eight million dollars a year in taxes.

Once again, the government is not entitled to that money. Taxes should be cut across the board and the government should eliminate most programs it offers.

Answer 6

I guess he can afford it since he is the third richest person in the world but Im unsure if every income level should be taxed the same. I think it would be hard to tax everyone the same. If they make the tax too high for everyone then the average joe wouldnt beable to survive. And if they did it too low then our tax money wouldnt beable to support our government. Oh wells.

Answer 7

That's called pure and extreme capitalism, it's a big flaw, and does create problems down the road. Also Gate the richest or Buffet the 3rd richest, is for show? The Elites, buy and sell 10 guys like them in a week?!

Regards.

Answer 8

By my calculations, if his income were taxed at 70% (as it would have been under Jimmy Carter) he'd have to "survive" on a mere $13,800,000.00 per year. Someone making $1,000,000.00 per year, taxed at the same rate would have to somehow manage on $300,000.00 per year. Poor rich guys. I'm getting by OK on $17,000.00 a year take home, but $300,000.00? Boy, that would be tough. I wonder if the guy who said "Why do you care about other people's incomes?" is one of the people who also rips into illegal imigrants and social security scammers.

Answer 9

30% huh? Hmm, well, I don't know where Mr. Buffet's secretary lives, but I've done the math on my check and I get taxed between 22%-25% depending on how big my check is. (Overtime it's at 25%, regular 40 is 22%) Of course, I claim no one and get a nice tax return at the end of the year. So, either Mr. Buffet's secretary is living in a state with a high state tax, or pays more to the government voluntarily, or Mr. Buffet is wrong in his statement. My guess here would be, he's simpy wrong on this point.

Answer 10

I still like Perot's idea of a flat tax...beginning after the initial $20,000 a year bracket (maybe it was 30,000) so that the poverty level wasn't paying any tax...and then up in increments to the richest. Not that I think the rich owe me anything...but I don't think the rest of us should be shouldering the total bill for the services we receive in this country. i.e. roads/education etc.