Warren Buffett’s Tax Dodge

Warren Buffett’s Tax Dodge
@ The Wall Street Journal

Like Mr. Obama, Mr. Buffett speaks about raising taxes only on the rich. But somehow he ignores that the President’s tax increase starts at $200,000 for individuals and $250,000 for couples. Mr. Obama ought to call them “thousandaires,” but that probably doesn’t poll as well.

The President needs to levy his tax increase at such a lower income level because that’s where the money is. In 2009, 237,000 taxpayers reported income above $1 million and they paid $178 billion in taxes. A mere 8,274 filers reported income above $10 million, and they paid only $54 billion in taxes.

But 3.92 million reported income above $200,000 in 2009, and they paid $434 billion in taxes. To put it another way, roughly 90% of the tax filers who would pay more under Mr. Obama’s plan aren’t millionaires, and 99.99% aren’t billionaires.

Mr. Buffett says it’s only “fair” to raise his taxes, but he’s lending his credibility to raising taxes on millions of middle-class earners for whom a few extra thousand dollars in after-tax income is a big deal. Unlike Mr. Buffett, those middle-class earners aren’t rich and may earn $250,000 for only a few years of their working lives. How is that fair?

Exactly.

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One thought on “Warren Buffett’s Tax Dodge

  1. It doesn't matter anyway…increasing marginal tax brackets does nothing to the federal income…it only gives you a short term bump (until the market adjusts and pushes you back down because people take their money out of investing in industry). The less you tax, the more the people invest…it's a negative feedback. And liberals seem not to like negative (force-restore) feedback models…they ignore them in climate reseach too.

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