Posts Tagged ‘Taxes’

Progressive Taxes?

May 2, 2008

Bajillionaire Warren Buffett has argued that he isn’t being asked to pay his share. He went around his office, asking people what share of their income they pay in income taxes. Buffett’s 17.7 percent tax rate compared a bit too favorably with the 30 percent tax rate paid by his secretary.

So it appears that the tax system favors the super-rich over working stiffs.

And Buffett went a step further, putting his money where his mouth is. Last November he issued a challenge to his fellow billionaires:

I’ll bet a million dollars against any member of the Forbes 400 who challenges me that the average (federal tax rate including income and payroll taxes) for the Forbes 400 will be less than the average of their receptionists.

So far, no-one has taken him up on this bet.

From a Justin Wolfers post on the Freakonomics blog. According to MSN money, there is a de facto flat tax in the United States when all taxes are considered. It doesn’t matter if you make $20,000 or $500,000, you pay about 40%.