Warren Buffet

[75center]

My guess is a very very few have a lower rate than you. Is it fair that their lower rate still means probably hundreds of times what you pay? Why should they pay 7 million and get the same services you get for several thousand?

[Clyde]

It's my experience from having done thousands of tax returns that yes, they do make enough to pay income taxes and no, they do not pay "plenty" of federal taxes.

 

By the way, how much IS enough to pay income taxes?

 

To be fair, the majority who fall into the "no income tax paid" group are not coming to someone like you.

[75center]

To be fair, the majority who fall into the "no income tax paid" group are not coming to someone like you.

 

I help out at the free service centers and have had plenty over the years myself. I've seen tons at the lowest levels. You'd be surprised at how much someone can make and still pay no taxes, depending on their individual circumstances. What's sad is the number of people going to the fast food tax services and getting hosed when they could get them done free.

[Clyde]

I help out at the free service centers and have had plenty over the years myself. I've seen tons at the lowest levels. You'd be surprised at how much someone can make and still pay no taxes, depending on their individual circumstances. What's sad is the number of people going to the fast food tax services and getting hosed when they could get them done free.

 

By circumstances I assume you mean things like child exemptions? I just read an article somewhere this week about the # of people not paying taxes. Let me see if I can find it.

[75center]

Child exemptions, credits, itemized costs, age, marital status, etc.

[Clyde]

Child exemptions, credits, itemized costs, age, marital status, etc.

 

I can't find the article. Family of 4 (2 adults 2 kids) can make approximately how much before no income tax is owed? Assume kids are minors.

[75center]

I'm guessing over 40000 if they don't itemize, no daycare, no other credits other than EIC and child.

[Clyde]

I'm guessing over 40000 if they don't itemize, no daycare, no other credits other than EIC and child.

 

Thanks. I'd be curious to see a gross wages breakdown for the 50% that pay no taxes.

[Clyde]

Found what I was looking for.

 

2010:

I assume these wages are taxable wages and not gross wages.

 

 

68% made less than 50k (majority of this group is under 30k)

12.5% made 50k to 100k (shocking)

2% made 100k to 500k (stunning)

1% (4000 people) made over $1M and paid no taxes

[Clyde]

This article says that the very highest earners have had their effective tax rate drop from 26% in 1992 to 17% in 2010.

 

http://money.cnn.com/2011/04/14/pf/taxes/who_pays_income_taxes/index.htm

[Clyde]

For the record if your income is $30k and you've got a family I'm OK with no federal income taxes being paid. Social security taxes, state taxes, unemployment taxes, and local taxes along with sales tax take enough of that income.

[Randy Parker]

I often hear how hypocritical it is to advocate for higher tax rates while not voluntarily donating the commensurate sum of money to the government. I think this misses the point. Tax rates, like any other law, is a policy and for it to have a chance of succeeding it has to affect the total population. Warren Buffet suggesting rates be raised is to suggest that the cumulative sum of that revenue would have a substantial impact on the government's ledger, whether to balance it, fund programs, whatever. Warren Buffet donating money to the government would be ineffectual. Those are entirely different things and I think they should be treated as such. Would it be an effective policy if we said heroin is illegal - unless you want to voluntarily do it, then go right ahead? You can't drive a car without getting a license - unless you want to voluntarily do it?

 

But I still don't think this takes away Buffet's belief that he can do a "better job" at the "selection of beneficiaries than the government." Whether it's law or voluntary, how the government handles the increased revenue is the issue.

[75center]

Found what I was looking for.

 

2010:

I assume these wages are taxable wages and not gross wages.

 

 

68% made less than 50k (majority of this group is under 30k)

12.5% made 50k to 100k (shocking)

2% made 100k to 500k (stunning)

1% (4000 people) made over $1M and paid no taxes

 

Do you have a link? My guess is it is gross wages, not taxable.

[woodsrider]

That's a lot of money no doubt, but how much did he make? I'd bet I paid a higher percentage of my income in taxes. So if we have a progressive tax system why are the wealthy paying a lower percentage than me? Is that fair?

Unless your single making more then $40,000 with no ductions then no you aren't. Also, most of Buffets tax is capitol gains which is 15% no matter what.

[75center]

For the record if your income is $30k and you've got a family I'm OK with no federal income taxes being paid. Social security taxes, state taxes, unemployment taxes, and local taxes along with sales tax take enough of that income.

 

I've always thought that everyone should have to pay something into the federal income tax system. However, I'm ok with your 30,000 example. Shoot, I'm ok with the current higher thresholds. Until they start complaining about the rich not paying their fair share.