Buffett blasts system that lets him pay less tax than secretary - Times Online

Buffett blasts system that lets him pay less tax than secretary - Times Online

O come on. Before anyone starts believing this oldman that we the lower income earners are really paying more taxes, let´s get back into perspective using some of the general facts given in this news article: Mr. Buffet earned $46,000,000 for YoA 2006. Assuming that his taxable income is a mere $1,000,000 he would have paid $177,000 being 17.7%. Now let´s assume that his receptionist's taxable income is a pathetic $10,000 for YoA 2006 and unfairly taxed at 35% (US max rate), which would be $3,500.

$177,000 compared with $3,500? Come on, who´s paying more taxes? From the point of view of contribution to the country, the rich man certainly does more than the average Jane & Joe.

It would appear that Mr. Buffet is trying to 'seduce' the people.

Kong Kek Kuat, Kuala Lumpur, Malaysia

The reason Mr. Buffett doesn't pay much in taxes is that most of his income is derived from capital gains and dividends, which are quite correctly taxed at a lower rate than personal income.

Capital investment is the engine that drives the American economy. Raising taxes on capital gains discourages investment. It should also be noted that historically, treasury revenues increase when capital gain are taxed at a lower rate. If the purpose of the tax code is to raise revenues for federal spending, wouldn't it be wise to tax capital at a rate designed to produce the highest amount amount of tax revenues? As for dividends, the elderly in America are heavily dependent on the dividend checks they receive. Why raise their taxes?

What Mr. Buffett and other like-minded liberals don't seem to understand is that there is nothing stopping them from sending whatever they consider to be their fair share in taxes to the federal government. Then perhaps they can all sleep at night.

Tony P., montclair, NJ/US

Mr. Buffett's lower effective rate is due to income of capital gains (and probably tax-free muni bonds), not salary. For the receptionist, her income is salary, thus subject to the higher rates.

Second, lower capital gains rates encourage capital formation and investment. Why is no one wanting to lower the receptionist's rate but instead demanding an increase for the capital gains?

Third, Mr. Buffett can pay as much tax as he wants. If he feels that he's cheating the system or his poor receptionist, he can pay more to assuage his guilt. No need to bully the rest of us.

Fourth, the inheritance tax does not affect exclusively "rich" families, but those who have assets. This means that small business owners and family farms are "rich" in their total company value or land, but cash poor.

The death tax simply destroys these families, forcing them to sell the family legacy.

As for the 30m poor families, they aren't paying any tax anyway., let alone $1000 for the death tax.