Thursday, August 18, 2011

Warren Buffett's Tax Dodge - The billionaire volunteers the middle class for a tax increase.

Mr. Buffett is repeating his now familiar argument this week, coinciding with Mr. Obama's Midwestern road trip on the economy. Since the media are treating Mr. Buffett as a tax oracle, let's take a closer look at some of the billionaire's intellectual tax dodges. - Wall St. Journal
,,,The double tax oversight.... What he doesn't say is that much of his income was already taxed once as corporate income, which is assessed at a 35% rate (less deductions). The 15% levy on capital gains and dividends to individuals is thus a double tax that takes the overall tax rate on that corporate income closer to 45%.

• The middle-class bait-and-switch. Like Mr. Obama, Mr. Buffett speaks about raising taxes only on the rich. But somehow he ignores that the President's tax increase starts at $200,000 for individuals and $250,000 for couples. Mr. Obama ought to call them "thousandaires," but that probably doesn't poll as well.

The President needs to levy his tax increase at such a lower income level because that's where the money is.
The Real Reason Warren Buffett's Taxes Are Low - Peter J Reilly/FORBES
Warren Buffett's Very Strange Tax Argument - Tim Worstall/FORBES
Obama says Warren Buffett is right about taxes - Yahoo

Buffett's Piece: Stop Coddling the Super-Rich ran in the New York Times, and coincided with Obama's Magical Misery Tour

◼ FLASHBACK: It was reported that Other BIG Obama donor paid NO INCOME TAX: General Electric Paid No Federal Taxes in 2010 (Video) - ABC
For those unaccustomed to the loopholes and shelters of the corporate tax code, GE's success at avoiding taxes is nothing short of extraordinary. The company, led by Immelt, earned $14.2 billion in profits in 2010, but it paid not a penny in taxes because the bulk of those profits, some $9 billion, were offshore. In fact, GE got a $3.2 billion tax benefit.
◼ That account is also disputed: The truth about GE’s tax bill - Allan Sloan and Jeff Gerth/Washington Post