Tag Archives: Warren Buffet

The Liberal Lie: Buffet’s Secretary And Her Tax Rate

President Obama has enjoyed making a point the rich, the very rich, are making more out very well under the current tax code while the rest of us suffer.  His favorite example is his friend Warren Buffet.  In fact, Obama even mentioned it during his State of the Union Address:

When it comes to the deficit, we’ve already agreed to more than $2 trillion in cuts and savings.  But we need to do more, and that means making choices.  Right now, we’re poised to spend nearly $1 trillion more on what was supposed to be a temporary tax break for the wealthiest 2 percent of Americans.  Right now, because of loopholes and shelters in the tax code, a quarter of all millionaires pay lower tax rates than millions of middle-class households.  Right now, Warren Buffett pays a lower tax rate than his secretary.

I’ve been working this for a long time.  I’ve tried making the point that Buffet pays that SAME income tax rate as his secretary; tax on salary is straight forward and everyone uses the same schedule.  I’ve also tried to point out that Buffet pays much MUCH more in taxes than his secretary; he makes very much more.

All of this is ignored as only so much right-wing buffoonery.

So, let’s look, what does Warren Buffet’s secretary – Debbie Bosanek – pay?  Well, it’s reported that she pays a rate of 35.8%.  And Buffet?  What does he pay?  The same report says he pays 17.4%.

Buffett’s secretary since 1993, Debbie Bosanek, sat next to her boss just hours after being invited by the president to the State of the Union address, where the president made her the face of tax inequality in America.

Bosanek pays a tax rate of 35.8 percent of income, while Buffett pays a rate at 17.4 percent.

“I just feel like an average citizen. I represent the average citizen who needs a voice,” said Bosanek. “Everybody in our office is paying a higher tax rate than Warren.”

Interesting.  Interesting indeed.  The first thing I considered when reading this is why Buffet doesn’t compensate his staff in the same way he compensates himself; namely through assets that yield capital gains.  The second question I asked was, “Wait a moment, what IS the marginal rates exactly?”

Let’s again, go look:

According to the above table, Ms. Bosanek can’t earn enough  income to set her tax rate at 35.8%.  In fact, the highest that any American can pay is 35%.  And even if Ms. Bosanek made $1,000,000 her rate would be 32.73%.  No where near the 35.8% the liberals report she pays.

This should not be surprising; liberals suffer from a degree of lack of understanding when comes to things economic:

It’s not even close.  The conservatives did better, MUCH better, than the Leftists.  And it tracks exactly with political affiliation.

So the next time that you are confronted with the argument that Mr. Buffet’s secretary pays more in taxes than her boss, challenge them.  Ask them questions.  Ask them if they mean total dollars or tax rate.  Then ask them to explain their answer.

They can’t.



Buffet Is A Smart Man

I was looking through articles and news about Warren Buffet, his compensation and his taxes.  He makes a remarkable amount of money.  And I have great admiration for the man.  His simple down to earth nature, his favorite activity is to have a bowl of popcorn and watch the Corn Huskers play football.  I like his common sense approach to business, I think he once mentioned that if he had purchased the Red Sox, he wouldn’t try and manage how Ted Williams approached hitting.

No, tax policy aside, I have great regard for the man.  And even in the tax debate, he showed a glimpse of his genius:

Becky: OK, there were a couple of emails that came in that people that said if you think the government should be able to tax more money, why don’t you just give your money away to the government instead of charity.

Buffett: Well, that’s a choice and it’s an option that… If I had to give it to a single individual, or make some young Buffett a multi-billionaire, or give it to the government, I’d absolutely give it to the government. I think that on balance the Gates Foundation, my daughter’s foundation, my two sons’ foundations, will do a better job with lower administrative costs and better selection of beneficiaries than the government.

Indeed.  I have little doubt that Buffet’s three children would do a better job with that money.

My only question is this:

Why does Buffet reserve the right to keep and spend his money as he sees fit but denies that same right to all other people?

Warren Buffet Wants Tax Rates To Rise

Warren Buffet is now famous for claiming that his secretary pays more in taxes than he does.  Forget for a second that she doesn’t literally pay more.  Also forget for a second that she most certainly doesn’t pay the rate that Buffet claims she does.

Instead, focus on Buffet.  And his salary:

Warren Buffett, the billionaire chief executive officer of Berkshire Hathaway Inc. (BRK/A), was paid a $100,000 salary for a 30th straight year after warning that excessive executive compensation can hurt shareholders.

Buffett, 80, received no bonus in 2010 and he doesn’t get stock options or grants, the Omaha, Nebraska-based firm said today in a filing. Buffett’s personal and home-security services paid for by Berkshire cost $349,946. The company’s compensation committee has determined salaries since 2004. Buffett, Berkshire’s chairman and largest shareholder, formerly recommended his own salary to the board.

It’s reasonable to conclude that Buffet will earn another $100,000 next year.  Plus, of course, the security compensation.  So, if he gets his way and Obama and the Democrats raise the marginal tax rate from the 35% it is now to what ever they wanna move it to, guess what happens to Buffet’s tax burden?

It remains almost exactly the same.

See, Buffet makes his money in other ways than a simple paycheck:

  • Buffett’s adjusted gross income last year was $62,855,038
  • Buffett’s taxable income last year was $39,814,784
  • Buffett paid $15,300 in payroll taxes last year
  • Buffett’s federal tax bill came to $6,923,494, or 17.4% of his taxable income last year
So, if we DOUBLE the current top marginal rate, Buffet is only impacted on the first $100,000 + whatever the security compensation costs him.  The rest, the $39,400,000 or so left over, won’t be impacted.
Don’t be fooled.  Buffet doesn’t wanna pay more taxes.  He wants OTHER people to pay more taxes.

Warren Buffet – Taxes – Patriotic Millionaires

One of the most tired old lines that Democrats trot out when it comes to taxes and the very rich is Warren Buffet’s claim that his secretary pays more in taxes than he does. A statement, of course, that is as silly as it is insulting.

Knowing this, it should be no surprise that Mr. Buffet is a member of The Patriotic Millionaires. This is a group of people who make or are worth a million bucks AND feel that the tax rate they pay is simply too low. They love to sing that they are willing to pay more in taxes.

My response?

So pay the damn money!

If those individuals feel that they aren’t paying enough, there are forms on the IRS website that they can download that will allow them to contribute to the government that amount of money they feel they are inappropriately being allowed to keep. However, when presented this fact, they throw up their hands and make the point that “it doesn’t work unless we ALL contribute! It requires ALL of us to pay more.”

What this means, of course, is that what this group of people REALLY wants is for someone ELSE to pay more in taxes.

Leftists are Leftists whether they be poor or rich. The best thing to do is remains far away from them as possible.