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To: CriticalThinking
Thanks for the first thoughtful intelligent comment in this post. It is a pleasure to read something free of name calling, insults and exaggeration. You said:

The article total ignores the double taxation issue. Corporations pay a 35% tax rate. The remaining profits are sent out as dividends or retained, driving up share price. There is a further tax on that gain. So Mr. Buffet is paying, actually a much higher rate than he claims. It may seem fare to raise taxes on capital providers, doing so though will reduce the amount of available capital.

I disagree with you on a few points:

Very few, if any corporations pay anything near the 35% rate. Many pay little if any tax at all.

I am retired and live off the returns from stock mutual funds. The taxes on the corporations whose stock I own does indirectly effect my return, but I still get a good return. If the taxes on that return were higher it would not keep me from investing. I think this is true of most investors.

Double taxation exists everywhere, not just on the returns from stocks. For example I pay income tax, then buy something and pay sales tax. I could list lots of examples but I am sure you see my point.

19 posted on 08/18/2011 10:51:51 AM PDT by RonBush
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To: RonBush

You are right see my post #16. Buffet’s company paid $5607 million in taxes and reported $19,051 million pretax income.
That’s just a bit under 30%

In addition, simply adding the payroll tax %, ignores the fact that it is eventually returned to the person under a formula that returns more percentage wise to those who had lower incomes during their working years.


28 posted on 08/18/2011 11:08:11 AM PDT by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
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