Romney, Buffet and their tax rates.

[stroguy]

I have yet to hear a commentator come to the rescue of Buffets secretary and demand that she pay the same rate as Buffet or 15%. If she is in a rate of 25% or 28% or 30%, drop her down to 15%. But the general public assumes we have to increase the riches rates. Man the media has done a very good job of brainwashing us. If they reduce her rate she can buy a better cell phone, a Starbucks every morning as well as on the way home and throw away those Jordache jeans and upgrade to some Tommy Bahama ladies fashion. The media is sinking that treble hook in our mouths that we need to increase everyones rates up to the 30% range. Man that is weak and purely selfish to add to the coffer for entitlements. Lord help us if we reduced the middle class rates. Anyone but Obama.

[Oldgringo]

I have yet to hear a commentator come to the rescue of Buffets secretary and demand that she pay the same rate as Buffet or 15%. If she is in a rate of 25% or 28% or 30%, drop her down to 15%. But the general public assumes we have to increase the riches rates. Man the media has done a very good job of brainwashing us. If they reduce her rate she can buy a better cell phone, a Starbucks every morning as well as on the way home and throw away those Jordache jeans and upgrade to some Tommy Bahama ladies fashion. The media is sinking that treble hook in our mouths that we need to increase everyones rates up to the 30% range. Man that is weak and purely selfish to add to the coffer for entitlements. Lord help us if we reduced the middle class rates. Anyone but Obama.

The answer is simple: Change the Tax Laws. The media talking heads don't want to change the Tax Laws because they also have the big buck$.The media is diverting attention away from the real problem with its sensational bovine fecal rantings.

The media talking heads are making more big bucks by stirring dissent through sensationalist news reports which generate more viewers and higher ratings which means more $pon$or$. The media is no friend to Joe and Mary Lunchbucket unless there is a big sandwich in there for them.

Whew, I said all of that? Yes, I did!

[stroguy]

Yeppers, I was being extremely sarcastic. These whiners about the rich tax rate can eat their shoes if a candidate would truly explore going to a flat tax rate.

[C-dub]

The problem is the libs are highlighting or putting the emphasis on a particular part that makes people think one thing that is inaccurate. Feel free to correct me if I wrong on this, but folks that make millions do pay a higher income tax rate than their secretaries. The 15% that Buffet claims to make is not on his "income", but rather the interest earned on that income after it has been put in the bank or whatever. So yeah, his tax rate is 15%, but so is everyone's whose money is handled the same way, right?

[rwg3]

The problem is the libs are highlighting or putting the emphasis on a particular part that makes people think one thing that is inaccurate. Feel free to correct me if I wrong on this, but folks that make millions do pay a higher income tax rate than their secretaries. The 15% that Buffet claims to make is not on his "income", but rather the interest earned on that income after it has been put in the bank or whatever. So yeah, his tax rate is 15%, but so is everyone's whose money is handled the same way, right?

No and yes, The interest earned is taxed as ordianry income, I believe. The 15% rate reflects the income from capital gains, in which profit is taken on a class of investments which have been held for more than one year's time. This is an important distinction as the really big money comes from stock ownership and/or the granting of options ( which have their own tax consequences). Often compensation at the upper levels is structured to reward the rich with stock awards which can be sold at a later date thus generating capital gains as opposed to earned income. For somebody who routinely earns millions of dollars in compensation the difference in tax rates is quite benficial, not to mention the ability to itemize investment expenses which can also lower the effective tax rate.

[Lambda Force]

The fair thing is a flat tax for personal income. No exemptions, deductions, credits, allowances, loopholes, shelters, kickbacks, bribes, prebates, or other junk. They should be able to fit the entire return on one side of letter-size page, in 12pt font or larger.

The problem is it's fair, so every special interest group trying to use the tax code to rob their neighbor will oppose it.

[C-dub]

I also heard something on the radio the other day where a study said that a single parent with a couple of kids making $25K/year has more disposable income than the same making $60k/year based on different deductions or tax credits or something. I think the gist of the study was that the really rich and low income folks make out better than much of the middle class, who Obama really has it in for.

[74novaman]

I also heard something on the radio the other day where a study said that a single parent with a couple of kids making $25K/year has more disposable income than the same making $60k/year based on different deductions or tax credits or something. I think the gist of the study was that the really rich and low income folks make out better than much of the middle class, who Obama really has it in for.

Yep. Can't radically change the country with a strong, healthy middle class! We need well defined haves and have nots before we can kick off the socialist revolution, don't ya know.

[karder]

The rich pay low tax rates due to shelters, loopholes, and investments. The poor pay little to no taxes. A flat rate would be fair. Everyone pays the same rate whether you make $1 or one million, but that won't happen. Washington is run by the rich who pander to the poor for votes, leaving the ever shrinking middle class to shoulder the responsibility for funding the country. We are going to tip over at some point. The answer is much smaller government, lower taxes for everyone, a flat fair rate that everyone pays, and merciless slashing of spending. Run this country like it is a business and make it profitable before we go bankrupt because of foolish leadership.

[Texas Dan Mosby]

Feel free to correct me if I wrong on this, but folks that make millions do pay a higher income tax rate than their secretaries.

They do.

The tax rate is progressive, regardless of whether it is income, or capital gains. The more you make, the more they take.

[puma guy]

capital gains is from the profit of investments made with money already taxed and the investment holds no guarantee of a increased value. Taxing at a lower level encourages investment. Munincipal bonds profits dividends are at a lower tax rate to encourage investors to put up money for governments. Divdends are paid with corporate profits after the corporate taxes are paid and the US has the highest corporate tax rate of just about any country. There is actually a lot of money flowing to the goverment from investments and corporations before the individual citizen even files with the IRS. John Kerry's effective tax rate was about 12%. From 1990 until he ran for Prez I think his TOTAL charitable contributions for the entire period were about $3000. Al Gore's record is not much better but I don't know his tax rate. No one made a fuss about Kerry's 12% tax If you took all the millionaires' money we'd still be in trouble.

[LikesShinyThings]

Remember the difference between EARNED income (taxed at the progressive rates) and UNEARNED income (taxed at lower rates) and Capital Gains (taxed at the lowest rate, IIRC).

If Buffett pays a lower tax rate than his secretary, the largest factor in that is going to be that his income is heavily slanted towards the capital gains and unearned income side of things, and he has comparatively little actual earned income.

Personally, I'm for a flat rate, or better yet the Fair Tax (which unlike an income tax would hit even those who earn money under the table). But barring going to the Fair Tax and eliminating the Income Tax, yes, let's have EVERYONE pay something into the system. I'm tired of hearing about the 50% who don't pay any income tax or worse, thru "tax credits" end up getting a net back from the government.