Posted on 10/10/2016 5:55:05 PM PDT by Olog-hai
That’s because all his income is from capital gains, not a salary or a wage. Capital gains are taxed at a lower rate than salary or wages.
This is a key teaching point. When you lose a billion dollar investment, you can offset future capital gains fully until the loss is exhausted. You can only carry a loss of $3,000/yr to your income tax. Billionaires take most of their income as dividends and capital gains from their businesses... that's how they have a lower tax rate than their secretaries. They are using favorable long-term capital gains and qualified dividend rates rather than their own income tax rate. All of these gains can be offset by the loss until the loss is fully realized.
Lisar, liar, oil train on fire ...
As you noted, Buffett and his liberal pals act like they never take advantage of the tax law, but of course they do. And Buffett could, if he thought he didn't pay enough in taxes, voluntarily have his corporations not take advantage of many of the deductions he does claim.
Around 38% of the A series Berkshire Hathaway shares.
Hillary used the same tax laws as Trump by carrying over $700,000 of deductions from her 2015 tax return.
Buffett has my respect for donating most of his fortune to charity. The Bill and Melinda Gates Foundation, to which Buffett gave the bulk of his fortune, is trying to do useful work. If it were my money, I'd target it very differently, but I give them credit for serious commitment.
Buffet is a liar...or, has never had a year with net loss...I’m guessing he is lying.
Yo, Warren, the question is do you ever take any lawful deductions?
Stock appreciation is not a taxable event, otherwise you would be chasing the market up and down. So Buffet has no S-corps, no sole props, no other pass-throughs to his personal return. Thus no NOL to spread. BFD. His corporate returns might tell a different story. Still, his Schedules A, B, & D would be very interesting. He has to use the tax laws liberally (NPI) to pay less than his secretary.
Warren Buffett needs to be droned.
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