There are very few in America who has not heard of Warren Buffett. He is one of the richest men in America and the one of the most successful investors, and greatest CEOs.
However, although he is best known by most Americans for being a shrewd and fantastic investor, he also has some controversial views on taxes. He along with many other super wealthy Americans favors a higher rate of taxes on the rich. This is a view shared by many, especially the poorer in the country. Many people feel that this these higher taxes can be used to help the poorer Americans to have an improved level of life and also improve the country`s schools and the health system. Since the money has to come from somewhere Buffett believes it is the rich who should be paying for most of it since, they are the ones who could afford it best.
He has actually stated on numerous occasions that he has stated on numerous occasions that he lives in a country with a system that allows him to pay less tax than his employees. Even his own secretary pays more income tax than he does.
Figures from 2006 show that of the taxable income off $46 Million that Warren Buffet earned that year, his taxes were just 17.7% whereas the average level of income tax that his employees paid was 32.9%, even his own secretary paid 30% in taxes. This does seem rather crazy by anyone’s estimations.
In Warren Buffet`s defense however he has argued the fact that this system is heavily flawed and has even been quoted saying at a fundraiser saying is “If you are one of the lucky 1% of humanity, you owe it to the rest of humanity to think about the other 99%”.
Additionally, Buffett has paid higher taxes in the past without complaining. Tax rates for the rich are at their lowest level in many years after the Bush tax cuts were enacted. When in the past Buffett was paying a higher rate, he did not say that it was unfair for him.
One other point is that even though Buffett is paying lower taxes than many Americans he has been pledging billions of dollars to charity. This shows that he is trying to make good use of his money, instead of hoarding all of it himself. So Buffett clearly does not have a problem giving away much of his hard earned money to help the less fortunate.
This shows that although Warren Buffet clearly does pay less tax than those earning substantially less than he does, it really is not him that is the problem it is the system that allows him to do this in the first place. He is not abusing the system; he is simply living by it.
Disclosure: None
http://www.valuewalk.com/
http://twitter.com/#!/valuewalk
However, although he is best known by most Americans for being a shrewd and fantastic investor, he also has some controversial views on taxes. He along with many other super wealthy Americans favors a higher rate of taxes on the rich. This is a view shared by many, especially the poorer in the country. Many people feel that this these higher taxes can be used to help the poorer Americans to have an improved level of life and also improve the country`s schools and the health system. Since the money has to come from somewhere Buffett believes it is the rich who should be paying for most of it since, they are the ones who could afford it best.
He has actually stated on numerous occasions that he has stated on numerous occasions that he lives in a country with a system that allows him to pay less tax than his employees. Even his own secretary pays more income tax than he does.
Figures from 2006 show that of the taxable income off $46 Million that Warren Buffet earned that year, his taxes were just 17.7% whereas the average level of income tax that his employees paid was 32.9%, even his own secretary paid 30% in taxes. This does seem rather crazy by anyone’s estimations.
In Warren Buffet`s defense however he has argued the fact that this system is heavily flawed and has even been quoted saying at a fundraiser saying is “If you are one of the lucky 1% of humanity, you owe it to the rest of humanity to think about the other 99%”.
Additionally, Buffett has paid higher taxes in the past without complaining. Tax rates for the rich are at their lowest level in many years after the Bush tax cuts were enacted. When in the past Buffett was paying a higher rate, he did not say that it was unfair for him.
One other point is that even though Buffett is paying lower taxes than many Americans he has been pledging billions of dollars to charity. This shows that he is trying to make good use of his money, instead of hoarding all of it himself. So Buffett clearly does not have a problem giving away much of his hard earned money to help the less fortunate.
This shows that although Warren Buffet clearly does pay less tax than those earning substantially less than he does, it really is not him that is the problem it is the system that allows him to do this in the first place. He is not abusing the system; he is simply living by it.
Disclosure: None
http://www.valuewalk.com/
http://twitter.com/#!/valuewalk
