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Tax

By Anonymous on Thu, 2007-08-16 15:15

What does Mr. Buffett mean when he says, he's making more money but he's paying less taxes than his secretary? Can anyone explain to me how that's possible?

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Nick on Thu, 2007-08-16 16:05
Title: I can't comment on the

I can't comment on the specifics, but I'll hazard an educated guess: I'd guess that Buffett isn't talking in absolute dollar terms when he says he is paying less in taxes. He if merely pointing out that he pays a smaller percentage of his earning to the IRS than his secretary.

George on Thu, 2007-08-16 19:45
Title: He's referirng to the fact

He's referring to the fact that social security payroll deductions and medicare are capped at I think around $90K in income. The marginal tax is also higher on wages than it is on dividends and I think in some cases capital gains.

kenkid (not verified) on Fri, 2007-08-17 22:19
Title: thanks

Thanks for helpful replies.