Did you know that Warren Buffet’s secretary pays more in taxes than Warren Buffet?
Just for the sake of this discussion, let’s call her Bernice. I’m typing this bad boy out on a virtual keyboard, and constant references to “Warren Buffet’s secretary” are going to drive me and my fat thumbed typing nuts. I have other things to drive me nuts beyond a bunch of campaign rhetoric.
Did you know that Bernice pays more in taxes than her boss Warren Buffet does?
What a bunch of Streep.
I have two issues with that premise and a suggestion for fixing the issue, but before discussing them, let’s provide a little context to the discussion.
Warren Buffet is a very rich man with well over $100 in the bank. He invented the all you can eat concept and now licenses them out under his name to dining establishments (you ever try to spell “restaraunts” on a virtual keyboard? It’s painful when you can’t spell it anyway.) nationwide.
For the last several years, Buffett has complained about the US tax code and how it’s lopsided in favor of the rich. The President has jumped on that bandwagon, and even had the gall to parade Bernice in this year’s State Of The Union address.
What a bunch of Streep.
Issue number 1. Ladies and gentlemen, we’re in the 21st century where terms like “secretary” and “mademoiselle” are labeled as sexist by the politically correct. Why is Bernice still being called a secretary?
But that’s neither here nor there, and subsequently leads us to our next point of issue number two.
Go look up withholding and other tax tables as produced by the IRS and used by taxpayers every year and you’ll find that people who make over a certain amount of money in a given year are taxed at a higher PERCENTAGE than those in a lower income bracket. This whole mantra that the rate in which the rich pay in taxes is lower than the rate for lower income brackets is a fallacy.
If Bernice is paying a higher rate than her boss, consider the fact that he uses all of the means at his disposal to keep his rates low. I would suggest that taking a salary smaller than Bernice may be one of those methods.
Regardless of how he does it, I have a solution to solve the issue of Bernice’s tax rate.
Under the current paradigm, the rich supposedly pay a lower percentage in taxes. If that’s the case where her taxes are too high and they need to be lowered, the solution is really quite simple.
Pay her more.