I kind of have a man-crush on Warren Buffett at the moment. He recently wrote an editorial calling for higher taxes for people that make more than $1-million. He explains things clearly and his reasoning is sound. As an example, he pointed out the absurdity of the low tax rates he currently enjoys:
Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.
If you make money with money, as some of my super-rich friends do, your percentage may be a bit lower than mine. But if you earn money from a job, your percentage will surely exceed mine — most likely by a lot.
Firstly, I love the term “super-rich”. It makes me think that Buffett and his friends parade around in capes…because they can. I wonder if I qualify as super-poor. I’m certainly not in the middle-class at the moment, but neither am I homeless or hungry. I’m pretty this makes me super-poor. Do I get a cape too?
Secondly, I think I’m going to have to abandon Margaritaville and promote Warren to my favorite Buffett. Sorry Jimmy.