Well, only if you were at a Hillary Clinton fundraiser last night.
The often “out of the box” Buffet, one of the richest men in the world, offered $1 million to any one in the audience who could prove that he paid a tax rate which was higher than those that work for him. Buffett claimed that last year, he made $46 million and was taxed at 17.7%. Those that work for him pay an average tax rate of 32.9% – with the highest rate being 39.7 percent.
“I’m willing to bet anyone in this room $1 million that those rates are less than the secretary has to pay,” said Buffett.
But, of course, you know that I agree with this statement. My own tax rate hovers at more than 32%, taking into consideration SE and related taxes, which is why I recently posted that being middle class in America sucks.
Our tax policy is skewed to favor the wealthy – especially those who are dependent upon “unearned income” which is income from dividends and interest. The rates for unearned income now tend to hover around 15% which is also one of the lowest rates for the those with earned income (meaning those who make low wages). The rates for earned income for the middle class rise sharply.
And if you don’t believe me, shouldn’t you believe Warren Buffet?
- Fix the Tax Code Friday: Buffett’s Tax Advice
- Why Everyone is Wrong About the Buffett Rule
- It’s Not Just Me…
- Buffet is critical… of the rich?
- Taxes and the State of the Union