Why does Warren Buffett think his income taxes are too low?

Aren't the rich suffering from disproportionate taxation? "The taxation system has tilted toward the rich and away from the middle class in the last 10 years," Buffett, the nation's third richest man, told Brokaw. Buffett said he did an informal survey of federal taxes paid by his own office staff, and the average was 32.9%, compared to his 17.7%. "There wasn't anybody in the office, from the receptionists on, that paid as low a tax rate," Buffett stated, noting that "I have no tax planning, I don't have an accountant, I don't have tax shelters." http://rawstory.com/news/2007/NBC_Warren_Buffett_wants_more_taxes_1030.html

Public Comments

  1. Buffett is a smart investor. He also has a good heart. Neither of those things make him an economist nor qualified to set public policy.
  2. Well thats the problem with the "income tax" system. Buffet who makes most of his money from investments pays less then someone who get their money from working. WORKING IS NOT SUPPOSED TO BE TAXED AS INCOME!!!
  3. The reason for that being, Mr. Buffett does not have a salary. He does not have income from his position at Berkshire-Hathaway. His money is made in stock ownership which is not taxed at the same rate that it would be if it were income from employment.
  4. Warren Buffet is worth BILLIONs he would be unaffected by taxes thats why!
  5. Because he is wealthy AND responsible. Something you don't see a lot of, the Republicans want the likes of Paris Hilton to control all the wealth in this nation.
  6. While Rich people tend to pay higher income tax rates on earned income (ie your salary from a job) they pay lower payroll taxes (which fund social security and which are collected separately from income taxes) because these taxes are 'capped' --ie they're collected on only the first $90,000 or so of a persons income (ie think its 90k, but it might be higher or lower). In other words a rich person who makes 2 million dollars a year would pay payroll tax on less than 5% of his salary, which a person making 60k per year would pay it on every dollar he makes. Capital gains (ie money made off investments) is also taxed at lower rates to encourage investing--however people who invest are disproportionately rich. For these reasons it is possible for a guy like Warren to pay less on each dollar he makes than one of his secretaries.
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