Just how Dumb does Obama and Warren Buffett think you are?

Warren Buffett: ""The 400 of us [here] pay a lower part of our income in taxes than our receptionists do, or our cleaning ladies, for that matter." Mhmm.. now that is F'd UP ! Except that he and Obama are LYING It is true that the 15 percent capital gains and dividend tax rates are lower... show more Warren Buffett: ""The 400 of us [here] pay a lower part of our income in taxes than our receptionists do, or our cleaning ladies, for that matter."

Mhmm.. now that is F'd UP !

Except that he and Obama are LYING

It is true that the 15 percent capital gains and dividend tax rates are lower than the marginal income tax rate paid by a lot of workers. Of course, this ignores that because of deductions the average tax rate for the middle class is much lower than the marginal rate.

But much more importantly, Buffett's claim ignores why the capital gains and dividend tax rates are set at the level they are: corporate income has already been taxed once when the company earned it. In the United States the combines Fed and State corporate tax rate is 40%

The HIGHEST in the World

So let's take a simple example. Suppose Warren Buffet invests his money in a company and that company earns $1. The company pays 40 cents in income taxes. If the remaining 60 cents is paid as a dividend, the 15 percent dividend tax rate leaves the stockholder with 51 cents, for a combined effective tax rate of 49 percent. The analysis is the same if the company keeps the money, raising the value of the company stock, and creating a capital gain. The rate would be higher if there is a state income tax.

Sorry, but if you believe that the receptionist pays higher tax rate than Buffett....

You're an idiot
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