Thursday, November 29, 2012

This'n'That; November Twenty-Nineth #1; Taxes-AGAIN!

The "Why" Of Buffett's Tax Proposal
    The "Oracle of Omaha" has proposed income tax alternatives which HE thinks the negotiators should consider.  Mr Buffett is being a bit disingenuous in his proposal....  he speaks of income taxes while HIS annual compensation falls under the 'dividends and interest' portion of the IRS Tax Code.
    The aforementioned 'alternatives:'
Warren Buffett is suggesting in his proposal for higher taxes on the wealthiest of Americans-a minimum rate of 30% (those earning $1M+) and 35% (those earning $10M+).

The Buffett 'suggestion' continues with a $500,000 defined threshold of 'rich millionaires and billionaires' rather than the "Clown Prince's" $250,000; saying that
" some parts of the country, $250,000 barely convers a middle-class lifestyle."
[Here's where Warren Buffett misses "Clown Prince" obama's point.  The "Clown Prince" has no inclination what-so-ever in allowing the average citizen to ever advance in 'class.']
    Let's see how Mr Buffett's obfuscations affect his hypothetical 'income' taxes vs his actual taxes. 
It's a given that Mr Buffett's current annual compensation is $100,000.
It's a given that Mr Buffett's current annual compensation is completely derived from dividends his portion of Berkshire-Hathaway generates. 
If Mr Buffett's $100,000 compensation were actually subject to income taxes, after allowable deductions his rate would be 39.12995%!!  Because his compensation is entirely derived from dividends Mr Buffett is taxed essentially at 15%.  There are several different reasons for and levels of, the unearned income (dividends and interest-capital gains) tax rates.  This is why Mr Buffett--during the most recent tax year--paid a 17.7% rate.
    One fact all the socio-fascists are ignoring:   
Higher taxes do not equal higher revenue (here and here)! 
Til Nex'Time....



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