Warren Buffet is a billionaire, but pays less in taxes than the middle-class. He pays primarily capital gains versus income tax, and the majority of his income is through stock investments. He makes major contributions to charity, reducing his salary. He hires top accountants to legally reduce the effective tax rate. Creating jobs also reduces taxes via government incentives. Lastly, he takes advantage of a new tax law: Bonus depreciation for fixed assets, and reducing corporate tax rate from 35% to 21%.
- One reason Warren Buffett pays less in tax than is secretary is that is he taxed on capital gains as opposed to income.
- By making many contributions to charitable causes Warren Buffett lowers the amount of taxes he is required to pay.
- Warren Buffett uses other techniques to save on taxes such as hiring an accountant, creating jobs and taking advantage of loopholes in tax law.
“With several presidential frontrunners advocating programs to increase taxes on the rich to reduce wage gaps and pay for free government programs such as “Medicare for All” and free public college tuition, it’s important to look at the big picture questions.”
Read more: https://www.entrepreneur.com/article/338189