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Warren Buffett releases tax figures to GOP

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TheDemSocialist

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Warren Buffett replied this week to a Republican request that he reveal his tax returns, revealing he made more than $62 million in income last year while paying $15,300 in payroll taxes.Rep. Tim Huelskamp (R-Kan.) sent an open letter last month to the billionaire investor, who has become the big-business mascot for the Obama administration’s plan to raise taxes on the wealthy, demanding that reveal his tax returns.

ccording to Huelskamp — in a view expressed by other Republicans including Sens. John Cornyn (Texas) and Jim DeMint (S.C.) — if Buffett’s views on tax rates are going to serve as the basis for the White House’s proposals, Congress should be allowed to examine the basis of his argument. Buffett has cited his own tax rate as being lower than that of his secretary when making his case for raising taxes on him and his “ultra rich” friends.

Buffett revealed in a letter sent to Huelskamp that his adjusted gross income was $62,855,038 last year and that he paid $15,300 in payroll taxes, as reported by CNN Money. He also claimed, as he had in an op-ed previously this year, that his federal income tax bill last year came to $6,923,494, or about 17 percent of his $39,814,784 taxable income.

Huelskamp called Buffett's response "inadequate."
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REad more @: Warren Buffett releases tax figures to GOP - The Hill's Blog Briefing Room
Well he did it you ol GOPERS and it seems he wasnt lying...

Thoughts?
Comments?
Response?



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$66M in a year. I'm thinking I chose the wrong career.

Who should I protest to remedy that?
 
Mach said:
$66M in a year. I'm thinking I chose the wrong career.

Who should I protest to remedy that?
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High school guidance counselor.
 
Mach said:
$66M in a year. I'm thinking I chose the wrong career.

Who should I protest to remedy that?
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There's only one "greatest investor in modern history" position, and it's taken.
 
How much is he spending on tax avoidance? How many deductions is he claiming? Out of his income, how much of it was subjected to capital gains tax? What are his charitable deductions?

And : http://www.debatepolitics.com/break...wes-1-billion-back-taxes-whaaaaaaaaaaaat.html

It seems that hes engaging in a lot of tax avoidance through his corporation. Im all for flattening out the tax code to close loopholes and allow companies to spend less in tax avoidance. That isnt exactly what Obama and the left wants though.
 
Buffett revealed in a letter sent to Huelskamp that his adjusted gross income was $62,855,038 last year and that he paid $15,300 in payroll taxes, as reported by CNN Money. He also claimed, as he had in an op-ed previously this year, that his federal income tax bill last year came to $6,923,494, or about 17 percent of his $39,814,784 taxable income.
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So was he out of pocket $15,300 or $6,923,494?
 
TheDemSocialist said:
REad more @: Warren Buffett releases tax figures to GOP - The Hill's Blog Briefing Room
Well he did it you ol GOPERS and it seems he wasnt lying...

Thoughts?
Comments?
Response?


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He's playing the system. I know, I've done it myself. Here's how it works: You pay yourself a pittance in salary, thus exposing a very small amount of money to ordinary income tax, social security and medicare. He only pays himself a salary of $100,000 a year. Warren Buffett's Effective Federal Income Tax Rate Was Just 11% - Forbes

He takes his income from Berkshire Hathaway in the form of dividends rather than salary, thus avoiding payroll taxes on the bulk of his earnings. The average CEO of a Fortune 500 company in the U.S. is $1.09 million. Buffett's? $100,000. :rofl Berkshire Hathaway ranks #19 in The Global 500 (largest companies in the world) and its CEO earns $100,000. Talk about playing the system!

Global 500 2011: Global 500 1-100 - FORTUNE on CNNMoney.com

That, in turn, has led President Barack Obama to call for tax reform to follow a “Buffett rule” —namely that millionaires should pay taxes at a higher rate than their secretaries and plumbers.
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Suggested New Buffett Rule:

Find every loophole there is in our tax code and use it against itself to minimize your tax bite....then brag that you pay less taxes than your secretary.
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Actually, the IRS should be on this guy in a New York Minute. The IRS has rules against paying yourself a pittance like this to avoid payroll taxes. I think the code reads something like "usual and customary." I wouldn't be surprised that they begin an investigation....just because they are embarrassed. That $15,000 number on $100,000? Social Security alone would be $6,200. So he's paying income tax of $8,800 on $100,000. I'd say a full audit of his personal return is coming down the road...
 
Actually, the IRS should be on this guy in a New York Minute. The IRS has rules against paying yourself a pittance like this to avoid payroll taxes. I think the code reads something like "usual and customary." I wouldn't be surprised that they begin an investigation....just because they are embarrassed. That $15,000 number on $100,000? Social Security alone would be $6,200. So he's paying income tax of $8,800 on $100,000. I'd say a full audit of his personal return is coming down the road...
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Correcto mundo. I know some business owners that were creamed by the IRS for violating this very law. I have always wondered why Buffett hasn't been nailed by the IRS.
 
MaggieD said:
Actually, the IRS should be on this guy in a New York Minute. The IRS has rules against paying yourself a pittance like this to avoid payroll taxes. I think the code reads something like "usual and customary." I wouldn't be surprised that they begin an investigation....just because they are embarrassed. That $15,000 number on $100,000? Social Security alone would be $6,200. So he's paying income tax of $8,800 on $100,000. I'd say a full audit of his personal return is coming down the road...
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OpportunityCost said:
How much is he spending on tax avoidance? How many deductions is he claiming? Out of his income, how much of it was subjected to capital gains tax? What are his charitable deductions?

And : http://www.debatepolitics.com/break...wes-1-billion-back-taxes-whaaaaaaaaaaaat.html

It seems that hes engaging in a lot of tax avoidance through his corporation. Im all for flattening out the tax code to close loopholes and allow companies to spend less in tax avoidance. That isnt exactly what Obama and the left wants though.
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Whoa, calm down there socialists. Let's keep the class warfare down to a minimum. You do realize that the motivation behind closing loopholes and raising taxes is the same? I happen to agree with you guys, that closing loopholes should be the first priority, but it is funny to hear it from the "OMG RAISING TAXES IS CLASS WARFARE!!!" crowd.
 
PerfectStorm said:
So was he out of pocket $15,300 or $6,923,494?
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Both

He paid 15300 in payroll taxesm and his income tax bill (federal) was 6923494

His secretary paid a higher effective tax rate then he did
 
Mach said:
$66M in a year. I'm thinking I chose the wrong career.

Who should I protest to remedy that?
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What ever company made the glue you've been huffing.
 
MaggieD said:
Actually, the IRS should be on this guy in a New York Minute. The IRS has rules against paying yourself a pittance like this to avoid payroll taxes. I think the code reads something like "usual and customary." I wouldn't be surprised that they begin an investigation....just because they are embarrassed. That $15,000 number on $100,000? Social Security alone would be $6,200. So he's paying income tax of $8,800 on $100,000. I'd say a full audit of his personal return is coming down the road...
Click to expand...


The rules you are talking about if I am correct are usefull generally in preventing owners of companies hiding their income within the company and using company funds to support the lifestyle. Ie expensing a condo as a company expense rather then paying for the condo out of personal funds. Given the rather lowkey lifestyle Buffet is supposed to be living that is not likely the case. His biggest expense would be travelling expenses for visiting the various companies BK owns and operates which would be a legitamate business expense. As I understand things he lives in a rather modest house and not a mansion like most. He has chosen to receive a low salary and see the majority of his income come in the form of capital gains, certainly it is gaming the system, but as a salary of $1 million a year is rather meaningless to him, it does not really matter now does it. For an annual salary to have any meaning to Buffet it would need to be in the $200 million range for him to notice the effect on his net worth
 
whysoserious said:
Whoa, calm down there socialists. Let's keep the class warfare down to a minimum. You do realize that the motivation behind closing loopholes and raising taxes is the same? I happen to agree with you guys, that closing loopholes should be the first priority, but it is funny to hear it from the "OMG RAISING TAXES IS CLASS WARFARE!!!" crowd.
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Not the same. Not everyone weasels out of every drop of taxes they can, and raising THEIR taxes because some others DO avoid taxation...wouldn't be very nice, would it?
 
Buffet's company owes over $1 Billion in taxes, maybe he should pay them before he tells us to pay more.
 
Warren Buffet is just trying to set the stage for his company to reap a windfall helping rich people find ways around the new taxes. Don't buy the hype.
 
MaggieD said:
He's playing the system. I know, I've done it myself. Here's how it works: You pay yourself a pittance in salary, thus exposing a very small amount of money to ordinary income tax, social security and medicare. He only pays himself a salary of $100,000 a year. Warren Buffett's Effective Federal Income Tax Rate Was Just 11% - Forbes

He takes his income from Berkshire Hathaway in the form of dividends rather than salary, thus avoiding payroll taxes on the bulk of his earnings. The average CEO of a Fortune 500 company in the U.S. is $1.09 million. Buffett's? $100,000. :rofl Berkshire Hathaway ranks #19 in The Global 500 (largest companies in the world) and its CEO earns $100,000. Talk about playing the system!

Global 500 2011: Global 500 1-100 - FORTUNE on CNNMoney.com



Suggested New Buffett Rule:



Actually, the IRS should be on this guy in a New York Minute. The IRS has rules against paying yourself a pittance like this to avoid payroll taxes. I think the code reads something like "usual and customary." I wouldn't be surprised that they begin an investigation....just because they are embarrassed. That $15,000 number on $100,000? Social Security alone would be $6,200. So he's paying income tax of $8,800 on $100,000. I'd say a full audit of his personal return is coming down the road...
Click to expand...


So that's how he avoids the 35% income tax rate that someone who makes over 379,150 has to pay.Tax Brackets (Federal Income Tax Rates) 2000 through 2011. He pays 17% because he he used what ever loopholes he can,even though he said he did not try to find ways to weasel out of paying a higher income tax rate.

But how does his secretary who makes 60,000 a year pay 30% instead of between 15-25% depending on single,filing jointly or head of household status?
 
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KevinKohler said:
Not the same. Not everyone weasels out of every drop of taxes they can, and raising THEIR taxes because some others DO avoid taxation...wouldn't be very nice, would it?
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I said the motivation behind them is the same. And it is. More revenue.
 
Mach said:
$66M in a year. I'm thinking I chose the wrong career.

Who should I protest to remedy that?
Click to expand...

Well first you need to call the Koch Brothers and George Soros to determine which one will give the most money for your protest. Then you can decide whether to put on your Tea Party hat or or Occupy Wall Street hat and go to town.
 
He could make that go away and pay the taxes if he wanted to.

He's either senile or a duplicitous whore.
 
MaggieD said:
He's playing the system. I know, I've done it myself. Here's how it works: You pay yourself a pittance in salary, thus exposing a very small amount of money to ordinary income tax, social security and medicare. He only pays himself a salary of $100,000 a year. Warren Buffett's Effective Federal Income Tax Rate Was Just 11% - Forbes

He takes his income from Berkshire Hathaway in the form of dividends rather than salary, thus avoiding payroll taxes on the bulk of his earnings. The average CEO of a Fortune 500 company in the U.S. is $1.09 million. Buffett's? $100,000. :rofl Berkshire Hathaway ranks #19 in The Global 500 (largest companies in the world) and its CEO earns $100,000. Talk about playing the system!
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You only pay into the majority of payroll tax until you make $103,000 by law. So I am guessing he is maxing out his payroll contribution or damn near is. He would still have the much smaller (like 1.5%) medicare portion if he made more in salary. Dividends are taxed as ordinary income and thus would be taxed at the normal marginal rate, so what you are saying makes no sense. Him paying himself $100,000 a year actually has a minimal impact on his total taxes. Lets say he paid himself $10 million in cash. That is still less than 20% of his overall income. Lets say that is all taxed at the highest marginal rate, about 40%, that would only raise his effective rate by about 8%, worst case scenario, extremely conservative numbers. Most of his income is in the form of capital gains, which is taxed at 15% (marginal). He isn't playing the system at all really. He is doing what is required by law.
 
Reg said:
He could make that go away and pay the taxes if he wanted to.

He's either senile or a duplicitous whore.
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Or, he's patriotic and cares about his country and fellow citizens.
 
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