David3036 Wrote:
Nov 19, 2012 2:16 AM
Payroll taxes are just withholding of income tax that you may or may not end up owing, plus Social Security and Medicare payments. That is NOT what makes a difference between Buffet's tax burden and his secretary's. It is the fact that she is taxed on earned income and he is taxed on investments. Furthermore, Buffet hasn't mentioned that his earnings are taxed twice -- once as a corporate tax and again on his personal return. If Buffet wants to shelter his secretary's income from taxes he can compensate her in stock options or other ways, but she might complain that she can't pay her biills. Also, his statement that she is taxed at 30 percent on a 60,000-dollar salary is patently false. She probably pays about 14 percent -- less if married.