Just how much money does Warren Buffett’s secretary make?
According to the WSJ, long-term capital gains and dividends are taxed as follows:
For taxpayers in the 15% income tax bracket and below, the rate is zero. For those in the 25% bracket and above, the rate is 15%
and the federal income tax rate for people earning $10,000,000 or more is 26.3%
|Adjusted Gross Income, 2009|| Average Federal
Income Tax Rate (%)
|$10,000 to $15,000||6.8%|
|$15,000 to $20,000||6.6%|
|$20,000 to $25,000||8.7%|
|$25,000 to $30,000||9.7%|
|$30,000 to $40,000||10.0%|
|$40,000 to $50,000||10.6%|
|$50,000 to $75,000||11.6%|
|$75,000 to $100,000||12.3%|
|$100,000 to $200,000||16.3%|
|$200,000 to $500,000||24.6%|
|$500,000 to $1,000,000||28.8%|
|$1,000,000 to $1,500,000||29.4%|
|$1,500,000 to $2,000,000||29.6%|
|$2,000,000 to $5,000,000||29.7%|
|$5,000,000 to $10,000,000||29.1%|
|$10,000,000 or more||26.3%|
Warren Buffett claims that his secretary is taxed at a higher rate than he. President Obama repeated that claim
“Warren Buffett’s secretary shouldn’t pay a higher tax rate than Warren Buffett.
She may be, if she’s pulling in a salary in the vicinity of $2-$5 million per year, claims no deductions, and has no capital gains.
Otherwise, the evidence doesn’t support Warren’s claim, particularly considering the various tax exemptions, deductions, etc., that change the numbers when you look at what people actually pay. Today Stephen Ohlemacher did a FACT CHECK: Are rich taxed less than secretaries?
This year, households making more than $1 million will pay an average of 29.1 percent of their income in federal taxes, including income taxes and payroll taxes, according to the Tax Policy Center, a Washington think tank.
Households making between $50,000 and $75,000 will pay 15 percent of their income in federal taxes.
Lower-income households will pay less. For example, households making between $40,000 and $50,000 will pay an average of 12.5 percent of their income in federal taxes. Households making between $20,000 and $30,000 will pay 5.7 percent.
The latest IRS figures are a few years older — and limited to federal income taxes — but show much the same thing. In 2009, taxpayers who made $1 million or more paid on average 24.4 percent of their income in federal income taxes, according to the IRS.
Those making $100,000 to $125,000 paid on average 9.9 percent in federal income taxes. Those making $50,000 to $60,000 paid an average of 6.3 percent.
Obama’s claim hinges on the fact that, for high-income families and individuals, investment income is often taxed at a lower rate than wages. The top tax rate for dividends and capital gains is 15 percent. The top marginal tax rate for wages is 35 percent, though that is reserved for taxable income above $379,150.
We are being subjected to class-warfare propaganda.
Warren, since you think the government is doing such a stellar job of managing things, leave the rest of us alone, and put your money where your mouth is and give all your income and all of your assets to the government. I beg you.
In the meantime, pay up: Berkshire Hathaway Owes Taxes Going Back To 2002
Tags: Warren Buffett