First, how about firing all your tax lawyers and accountants.That would allow you to give your secretary a raise because she could assume all your tax preparation tasks.
Second, classify every penny you or your business enterprises make as Gross Income no matter how it comes to you. So you don't have to add up those pesky capital gains, dividends or interest.
The third easy step is where your fabled secretary gets involved. Next January, ask her to stop by the library and get a 1040EZ form. List all the money you made in 2011 under the income column. An additional option would be to forego the personal exemption allownace, but that is up to you.
Finally, go to the tax table to determine what you owe. Be assured it will be more than your secretary owes so you and the President of the United States will sleep more peacefully.
It is confusing how such a smart and successful man as you who wants the government to take more of your money hasn't stumbled on this idea on your own. Please pass the idea on to your bud, Bill, over at Microsoft.
with regards,
Jim
As the Major Shareholder in BERKSHIRE HATHAWAY you could order them to pay your back taxes.
A question that nobody has asked is how much does Buffet pay this ‘secretary’?
How about we just stop taxing income all together and start taxing personal consumption instead! THEN you will see Mr. Buffett, and many others singing a very different tune!
BTW: There is absolutely nothing preventing Mr. Buffett from writing any size check he wants to the U.S. Treasury TODAY!!
Many of the businesses Mr. Buffett’s company currently owns he bought from the families of those who built them at fire sale prices because they could not afford to both keep the business and pay the inheritance taxes! He’s a SLUG!
He takes his pay as dividends or interest, as most rich moguls do which is taxed at a rate of 15%. It is in a sense a loophole that he as availed himself to. He could take that same amount as a salary and then he would pay the same “rate” as his secretary 36.9%.
Income taxes are too easy to avoid. Consumption taxes would be better, sales tax maybe. Think of it, even illegal aliens would have to pay some taxes.
When some Democrat politicians use class warfare arguments by claiming they want "the wealthiest Americans to pay their fair share", they never mention the fact that the truly wealthy do not "make" very much money.
Warren Buffet is a "buy and hold" investor whose wealth ("unrealized gains") has risen massively over the decades. However, until he actually sells his shares of Berkshire-Hathaway, he, by tax code definition, has "made" no money and, therefore, has very little "income". Buffet's "salary" at his company is $100,000 per year.
The Federal Government taxes "Income" and not "Wealth".
Very little Income = Very little Income Taxes = Warren Buffet paying $6 million in yearly Federal taxes when his net wealth is $50 Billion.
In effect, Warren Buffet pays 0.012% of his net worth in Federal taxes each year.
By contrast, a workaholic small businessman that has managed to just become a "millionaire" but pays $100,000 in Federal income taxes each year is paying 10% of his entire net worth in Federal taxes year after year.
It is extremely difficult to become truly "wealthy" that way.
But, Warren Buffet will pay taxes after he dies with the Death Tax, won't he?
No, he won't. He is leaving 99% of his wealth to the charitable Foundations of his friends (most of it to the Bill & Melinda Gates Foundation)...... Tax Free.
So, the next time a Democrat talks about "the wealthiest Americans not paying their fair share" as an excuse to raise YOUR income taxes, explain to them the difference between "wealth" and "income".
If Buffet truly wants to pay "his fair share", he should volunteer to pay a yearly Wealth Tax on his wealth.
If Warren Buffet paid the same percentage of his net worth in Federal taxes as I did last year, his tax bill, for last year, would have been $2 Billion.
That is 333 times higher than it is right now.
Brilliant Jim! I keep hearing that it’s not fair to go after Buffet for his company not paying their taxes. After all, they are in dispute, not failing to pay. LOL, if he really wants to pay more taxes then why on earth is he disputing? Pay the taxes and shut up!
Excellent post.