Friday, September 30, 2011
Warren Buffet the Hypocrit
I'm sure all have heard Warren Buffet's spiel on how the rich should have higher income taxes. However, few people realize that WARREN BUFFET DOES NOT PAY INCOME TAX. I am not pulling rabbits out of my ass here. Warren Buffet intentionally does not pay himself a salary from Berkshire Hathaway, thus he has no income, and no income to tax. The only tax he pays is on capital gains, the same rate as everyone else in America. It may not be easy to see, but he actually circumvents the income tax and pays significantly less than he would otherwise have to pay. Since his fat salary is not existent, all of that money stays with the company, adding to its capital, and in turn, its stock value. As the stock goes up Buffet gets his profit and is taxed at the long term capital gains taxed, ez money. I'm surprised this isn't a more popular trend in the big wigs of business, then again it can be quite a volatile way to get your paycheck.
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