Buffett\'s Income
 

At Hillary's fundraiser in NYC this week, Buffett talked about how inequities in the tax code favor those with high incomes. To illustrate, he said his federal tax rate (which is both income taxes and payroll taxes) was around 17% on income of $46 million during 2006. Yet, those with far lower incomes who are employed as staff at Berkshire's headquarters had a tax rate of over 30%. I was surprised by the $46 million income figure.

He has paid himself $100,000 per year at Berkshire for a number of years and never taken a bonus. I was under the impression that when he dissolved the investment partnerhip he rolled all of his net worth, excluding his home, into Berkshire. I was also under the impression he had never sold a share of Berkshire. One of those is apparently wrong, since it takes a sizeable chunk of assets to generate an income of $46 million.

So what are the assets outside of Berkshire he owns that generated an income of $46 million last year? Did he at one point sell some Berkshire stock and put the proceeds into income generating assets like bonds?

Re: Buffett\'s Income
 

[ QUOTE ]
At Hillary's fundraiser in NYC this week, Buffett talked about how inequities in the tax code favor those with high incomes. To illustrate, he said his federal tax rate (which is both income taxes and payroll taxes) was around 17% on income of $46 million during 2006. Yet, those with far lower incomes who are employed as staff at Berkshire's headquarters had a tax rate of over 30%. I was surprised by the $46 million income figure.

He has paid himself $100,000 per year at Berkshire for a number of years and never taken a bonus. I was under the impression that when he dissolved the investment partnerhip he rolled all of his net worth, excluding his home, into Berkshire. I was also under the impression he had never sold a share of Berkshire. One of those is apparently wrong, since it takes a sizeable chunk of assets to generate an income of $46 million.

So what are the assets outside of Berkshire he owns that generated an income of $46 million last year? Did he at one point sell some Berkshire stock and put the proceeds into income generating assets like bonds?

[/ QUOTE ]

sounds like that was his income (i.e. payment from BH for his stewardship + bonus + interest income + dividends)

Barron

Re: Buffett\'s Income
 

[ QUOTE ]
He has paid himself $100,000 per year at Berkshire for a number of years and never taken a bonus. I was under the impression that when he dissolved the investment partnerhip he rolled all of his net worth, excluding his home, into Berkshire. I was also under the impression he had never sold a share of Berkshire. One of those is apparently wrong, since it takes a sizeable chunk of assets to generate an income of $46 million.

[/ QUOTE ]

isn't he gradually "cashing out" his BH stock by donating it to the gates foundation? huge charitable donations would also help explain why his tax rate is so low...

Re: Buffett\'s Income
 

He talks about how tax cuts on capital gains and dividends help the wealthy in this letter on page 6.

Re: Buffett\'s Income
 

[ QUOTE ]
[ QUOTE ]
He has paid himself $100,000 per year at Berkshire for a number of years and never taken a bonus. I was under the impression that when he dissolved the investment partnerhip he rolled all of his net worth, excluding his home, into Berkshire. I was also under the impression he had never sold a share of Berkshire. One of those is apparently wrong, since it takes a sizeable chunk of assets to generate an income of $46 million.

[/ QUOTE ]

isn't he gradually "cashing out" his BH stock by donating it to the gates foundation? huge charitable donations would also help explain why his tax rate is so low...

[/ QUOTE ]

I watched a video of the event on Bloomberg. He pointed out the 17% tax rate wasn't influenced by his charitable donations.

Re: Buffett\'s Income
 

[ QUOTE ]
[ QUOTE ]
At Hillary's fundraiser in NYC this week, Buffett talked about how inequities in the tax code favor those with high incomes. To illustrate, he said his federal tax rate (which is both income taxes and payroll taxes) was around 17% on income of $46 million during 2006. Yet, those with far lower incomes who are employed as staff at Berkshire's headquarters had a tax rate of over 30%. I was surprised by the $46 million income figure.

He has paid himself $100,000 per year at Berkshire for a number of years and never taken a bonus. I was under the impression that when he dissolved the investment partnerhip he rolled all of his net worth, excluding his home, into Berkshire. I was also under the impression he had never sold a share of Berkshire. One of those is apparently wrong, since it takes a sizeable chunk of assets to generate an income of $46 million.

So what are the assets outside of Berkshire he owns that generated an income of $46 million last year? Did he at one point sell some Berkshire stock and put the proceeds into income generating assets like bonds?

[/ QUOTE ]

sounds like that was his income (i.e. payment from BH for his stewardship + bonus + interest income + dividends)

Barron

[/ QUOTE ]

hmmm...reading if fun-da-mental.

on another note, is buffet complaining about "rich favoring" tax treatment? i'm a fan of progressive income taxes.

if we didn't have them, the wealthy would pay virtually ALL of the taxes rather than only some massive majority they do now.

maybe we could adjust the taxes so the poor pay an even smaller amount and just slightly jack up the wealthy's tax payments.

in terms of behavior, this should probably benefit the overall economy b/c the slight change in wealthy tax rates probably won't alter consumptions whereas the increased aggregate demand as a result of poor people having more disposable income to spend on necessities would imo increase overall production.

the marginal utility of money past a certain point is probably small enough to warrant that policy, but greed & the way the govt works would never let this happen (the poor have no way to retain the best lobbyists &/or donate to congressional campaigns)

it's a slight sidetack but a very interesting issue imo.

Barron

Re: Buffett\'s Income
 

OT: I am in favor of corporations paying substantially more taxes than they do now. Many big corps get big tax breaks just to exist especially in local taxes leaving the gap to be filled by small frys.

Re: Buffett\'s Income
 

[ QUOTE ]
OT: I am in favor of corporations paying substantially more taxes than they do now. Many big corps get big tax breaks just to exist especially in local taxes leaving the gap to be filled by small frys.

[/ QUOTE ]

This is a retarded idea. If you want to tax corporations, you should do so directly by repealing the corporate income tax entirely, and simply levy taxes on capital gains and dividends paid to shareholders.

Re: Buffett\'s Income
 

[ QUOTE ]
[ QUOTE ]
OT: I am in favor of corporations paying substantially more taxes than they do now. Many big corps get big tax breaks just to exist especially in local taxes leaving the gap to be filled by small frys.

[/ QUOTE ]

This is a retarded idea. If you want to tax corporations, you should do so directly by repealing the corporate income tax entirely, and simply levy taxes on capital gains and dividends paid to shareholders.

[/ QUOTE ]

A close friend and mentor who is retired from the IRS always argued that a national tax was the best alternative due to its simplicity and potential for high revenue. But that the tax system is so complicated and connected that its almost impossible to dissemble.

Re: Buffett\'s Income
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
At Hillary's fundraiser in NYC this week, Buffett talked about how inequities in the tax code favor those with high incomes. To illustrate, he said his federal tax rate (which is both income taxes and payroll taxes) was around 17% on income of $46 million during 2006. Yet, those with far lower incomes who are employed as staff at Berkshire's headquarters had a tax rate of over 30%. I was surprised by the $46 million income figure.

He has paid himself $100,000 per year at Berkshire for a number of years and never taken a bonus. I was under the impression that when he dissolved the investment partnerhip he rolled all of his net worth, excluding his home, into Berkshire. I was also under the impression he had never sold a share of Berkshire. One of those is apparently wrong, since it takes a sizeable chunk of assets to generate an income of $46 million.

So what are the assets outside of Berkshire he owns that generated an income of $46 million last year? Did he at one point sell some Berkshire stock and put the proceeds into income generating assets like bonds?

[/ QUOTE ]

sounds like that was his income (i.e. payment from BH for his stewardship + bonus + interest income + dividends)

Barron

[/ QUOTE ]

hmmm...reading if fun-da-mental.

on another note, is buffet complaining about "rich favoring" tax treatment? i'm a fan of progressive income taxes.

if we didn't have them, the wealthy would pay virtually ALL of the taxes rather than only some massive majority they do now.

maybe we could adjust the taxes so the poor pay an even smaller amount and just slightly jack up the wealthy's tax payments.

in terms of behavior, this should probably benefit the overall economy b/c the slight change in wealthy tax rates probably won't alter consumptions whereas the increased aggregate demand as a result of poor people having more disposable income to spend on necessities would imo increase overall production.

the marginal utility of money past a certain point is probably small enough to warrant that policy, but greed & the way the govt works would never let this happen (the poor have no way to retain the best lobbyists &/or donate to congressional campaigns)

it's a slight sidetack but a very interesting issue imo.

Barron

[/ QUOTE ]

qft