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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth
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To: geode00 who wrote (143715)10/28/2008 3:15:13 PM
From: TimF  Read Replies (1) of 173976
 
Buffet said that, but it isn't a very accurate portrayal of reality.

Message 25106599

His receptionist doesn't pay 30% of her income in income taxes, or even in income + payroll taxes.

Unless she makes at least 164,550 (if single) or $200,300 (married filing jointly) or at lowest $100,150 (married filing separately) she doesn't even pay 30% or more as a marginal tax rate.

And the marginal tax rate isn't the percentage of her income that she actually pays. She gets deductions, exemptions, and credits, and also the rate is lower on part of her income.

If she's single and makes $75K than even without kids, or a mortgage deduction, or almost any other deductions, she only pays about 13% in federal income taxes. Even add in her payroll taxes and she's still under 21% (and its probably much lower since most people have more deductions and exemptions)

Meanwhile Buffet's rate isn't just his marginal dollar rate but his actual rate. And it ignores quite a few ways that he is effectively hit with taxes. It doesn't count the tax that the corporations he owns all or part of pay, in doesn't count the lower return in liu of paying taxes he gets if he owns and profits from tax free bonds, etc.

So while the headline nominal rate she pays may be much higher than his, the real rate she pays is almost certainly lower, likely much lower.
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