Tuesday, August 16, 2011

Wealthy Tax Rate Half That of Folks Who Work For A Living

I've been telling everyone who will listen that the ultra-rich are not only not sharing the sacrifice, they are engorging themselves in a trove of tax loopholes that is making them grow fatter every day.  For every dollar a working person pays in taxes, a wealthy investor pays only fifty cents.  Now the only ultra-rich person I know who shows any soul, Warren Buffett, has laid it all out for us.   I am posting a short excerpt below but a link to the whole article from the NY Times, August 14, 2011.  Go read the whole piece.

Stop Coddling the Super-Rich

OUR leaders have asked for “shared sacrifice.” But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.
While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as “carried interest,” thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors.
These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It’s nice to have friends in high places.
Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.
If you make money with money, as some of my super-rich friends do, your percentage may be a bit lower than mine. But if you earn money from a job, your percentage will surely exceed mine — most likely by a lot...

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