Dear Mr. Buffet
You and other millionaires billionaires have been pleading with Congress to raise taxes. You could have not put your money where your mouth is by simply giving the government its fair share. To your credit you did release a summary of your income showing how unfair the current tax code is.
Mr Buffet Income and Taxes using 2010 form 1040:
Adjusted Gross Income (AGI) $62,855,038,
Taxable Income: $39,814,784,
Federal Income Tax $6,923,494.
Dividing your Federal Income Tax by his Taxable Income gives you an average tax rate of 17.4%. This does seem unfair and the solution is Easy as use the 1040EZ form. Let's take a look at what would have happened if you had used the EZ form instead.
Let's fill it out Line 4 would be Adjusted Gross Income (AGI) $62,855,038,
Now Taxable Income: $39,814,784 will change. Instead of subtracting $23,040,254 you will get to deduct $9,350. for a taxable income of $62,845,688.
Now, we are onto calculating your tax
You won't qualify for making work pay (Even though you did). You don't qualify for the earned income credit nor combat pay. So your taxable income of $62,845,688. Now lets see what your tax will be.
Strange the IRS doesn't think anyone making over $100,000 dollars would use the EZ form. Oh well let's go to the table on 1040 form.
Whew! I thought we were going to lose the easy in switching to the 1040 form but the table is actually easy. Your taxable income is above $373,650 so here we go.
$62,845,688 X .35 - 22,356,25 = $21,973,625
Warren, I was able to do you taxes in a couple of hours and make your tax liability fairer as you wanted. As you can see by making the tax code simpler we can raise revenues significantly. We may even be able to lower rates and still raise revenue. This is the republican position you have been denouncing. Your backing of the President’s proposal for creating new brackets and complicating the code even more to raise money is wrong.
If I was a cynic I would say that you know that the republican proposal is superior but you are a crony capitalist who knows by raising the taxes on high income earners. You would be getting other millionaires to pay your fair share since the great majority of your income comes from capital gains. You would continue to pay the 15% on your capital gains while those that earn their income in salary would pay in more. to feed The government trowel would have the pork for you and your cronies can make a Solyndra deal with the President. If I was a cynic I would say that one of your ways to get rich is to have others pay your taxes.
Again look at the difference between simpler tax vs the Numerous rates and numerous deductions for cronies.
| Mr Buffet Income | 1040 | 1040EZ |
| Adjusted Gross Income (AGI) | $62,855,038 | $62,855,038 |
| Taxable Income: | $39,814,784 | $62,845,688 |
| Federal Income Tax | $6,923,494 | $ 21,973,625 |
Progress can be made not by fighting with republicans and siding with class warfare. The idea of lowering rates and closing loopholes will work. For the sake of making progress please call on Obama to end the Buffet rule and compromise with the republicans.
Comment
Comment by John Ray on November 22, 2011 at 6:36pm I used to teach school and coach, and I liked to call 'em like I saw 'em. I was in a private school, so I could still do that a little. A kid who says he ought to do more work, in class or sports - I figured my course was honest, and my teams won, they won a lot - I figured that kid was usually a suckup. That kid wanted something down the line that he didn't plan to earn. A kid that ratted out his pals for not doing their share - I kept my eyes peeled, and fair share was my job. I called that helping me with my problem, and I resented it. If another kid wasn't pulling his freight, It was my job, no one else's, to see to it and call him out. I ran my class fair and I ran my team hard, and nobody, but nobody, especially their teammates, knocked them down. So Mr. Buffet may be looking for something down the line, and he wants to do the teacher's job. If the Chosen One had been born with a spine, he would have kicked Buffett's overrich advice back to Omaha long ago and told him to keep his mouth shut until he had something useful to say. The Chosen One, unfortunately, seems to like tattletales, suckups, and teachers' pets. This is because he is in way over his head. It will pull a country apart, just like it will pull a class apart or pull a team apart. You get what you pay for. Remember that in '12.
Comment by Char Krueger on November 22, 2011 at 6:32pm Will all the two-faced (& evil, lying) DEMOCRATS please leave this country now! All the rich people like Buffet & anyone who is STUPID enough to follow Obama & to donate to him to keephis regime should also immediately leave this country. We don't want you and we certainly don't need you - then we will flourish & be a great country again in a short time!
Comment by Terri Marquardt on November 22, 2011 at 6:31pm As you can see, it doesn't matter what they (billionaires) say. They know how to get around paying their fair share. They just want the small business owner who makes $250,000 and is trying to figure out how to make his payroll and hire the very people who need jobs to pay everything they make and more.
This COULD have been a fascinating article, but it made for very difficult reading with all the typos and spelling errors.
Comment by Guy Blanchard on November 22, 2011 at 5:59pm Remember,obama has 1 billion dollars for his campaign. He got that money from his wall street friends. Transparency right?obama says one thing and does the opposite.Transparency remember?c-span he promised and c-span is banned. No backroom deals he promised so to the backroom went reid and pelosi for obamacare.Oh,he signed it after the democrat commies passed it without even reading it but they exempt themselves from it.Transparency right?obama promised to cut the debt in half but instead increased it over 4 trillion dollars in less than 3 years. Hello. Transparency right?obama said he was a Christian and cancelled our national day of prayer only to pray all day one week later with 50,000 muslims. hello. Transparency right?
Comment by Tony Denslow on November 22, 2011 at 5:59pm A flat tax is the way to go but wealthy people who wield the most power in government circles do not want it. Do the math and it becomes apparent. The wealthy love all those little loopholes because it gives them wiggle room to debate deductions with the IRS and the tax court. A lot of our tax laws, written by lawyers, are open to interpretation. This is done on purpose to keep the legal eagles in business. Meanwhile, the little guy (ie the middle class) pays what he must because he can't hire a high-price law firm to argue with the IRS and delay tax payments for years as in Buffet's case. A flat tax with no deductions puts all of us on equal footing as it should be.
Comment by Jack Kemp on November 22, 2011 at 5:54pm The following address can be given to any liberal who tells you that we are not paying enough taxes and they would gladly pay more - including Warren Buffet.
Make your check payable to the Bureau of the Public Debt, and in the memo section, notate that it is a Gift to reduce the Debt Held by the Public. Mail your check to:
Attn Dept G
Bureau Of the Public Debt
P. O. Box 2188
Parkersburg, WV 26106-2188
Comment by Jonathan Stern on November 22, 2011 at 5:48pm His taxes are lower because most of his income comes from capital gains, which are taxed at a lower rate. For the most part, it's not deductions. It's the capital gains rate.
Comment by joana briggs on November 22, 2011 at 5:39pm Too simple but true. Anyone wanting to pay more just pays more by by passing all the gimmicks.
Comment by Debrajoe Smith-Beatty on November 22, 2011 at 5:37pm Thanks, interesting.
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