Warren Buffet's secretary does NOT pay a lower tax rate than Warren Buffet says Peter Schiff

Warren Buffet's secretary does NOT pay a lower tax rate than Warren Buffet says Peter Schiff 1.02 min. | 0 user rating | 1 views Peter Schiff explains that Warren Buffet, majority shareholder of Berkshire Hathaway, pays 35% corporate tax in addition to the 17.4% Buffett payed in his individual tax return in 2010. If Buffet didn't have to pay that 35% corporate tax, he could keep the money for himself. According to Larry Swedroe of moneywatch.com: Company A pays $35 in taxes on the $100 it earned and is left with $65 in after-tax income. It pays that out in the form of a dividend, taxed at the preferential rate of 15 percent. The owner of the company thus earns net income of $55.25, and his company is still worth $1000. The owner would only report taxes of $9.75, or 15 percent of his taxable income of $65. Yet, the effective tax rate is clearly 44.75 percent, not the 15 percent rate Buffett is focusing on... Our tax system creates what we might call a framing problem, causing Buffett to make the claim that his tax rate is lower than it really is. While I can't know for sure (since Buffett is obviously a very smart man), my own view is that he certainly knows the math, but he has a political agenda that is motivating his statements. Read more: moneywatch.bnet.com More information