Tuesday, October 11, 2016

Warren Buffett's Shocking Income Tax Rate

Donald Trump defended his $916 million tax loss by suggesting other billionaires, including Warren Buffett, used the same tax-cancelling strategy.

Not so, Buffett declared. He has paid federal income tax every year since 1944. In 2015 Buffett paid tax of $1,845,557 on an income, after deductions, of $6,086,237.

That works out to a tax rate of over 30%.

Aha! He doesn't pay at a lower rate than his secretary after all. No, but he probably never did. His much-publicized calculation included payroll taxes.

1 comment:

Jim Gust said...

We don't know what Buffett's income was. We only know his taxable income. We have no idea how many millions of dollars of tax free income he gets from his enormous muni bond portfolio.