Warren Buffet pays lower tax rate than his Secretary - How?
HE is one of the richest men in the world. He started it in 2006 and had been repeating it. He paid an Income Tax of 15.5% on his income of 46 Million Dollars while his Secretary paid 30% on her 60,000 dollars.
Conclusion: The US tax system allows the rich to pay less than the poor.
Actually the top income bracket is taxed at 35%. Then how did Warren Buffet pay only 15%? Most of his income comes from capital gains and corporate dividends, which are taxed at half the normal rates. His investment strategy is to invest in good companies on a long, and sometimes very-long, term basis. The richest people of the world including Bill Gates do that. Buffet who is said to be worth 50 billion dollars has an income of less than 50 million dollars, which is less than 0.1%. He obviously is not only a good investor but a master tax planner – and finally he is doing it all for charity!