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Post by T Bhat on Jul 7, 2011 22:45:22 GMT -5
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Post by gopalbhat on Jul 10, 2011 20:03:34 GMT -5
I was reading the interview with Buffet. He said "If you go back 15 years, the average income of the 400 top people— the 400 top people's around 45 million. They paid about 27 percent. Now it grew, the most recent figures, to 350 million. That is incredible. And that's nothing like's happened to the rest of the world. The tax then was 16.6. So while they've gotten ungodly richer, the rate has come down 11 points. Now, that is a big tilt in the world. And I would go after the very rich." So I went to US Treasury Website (and sort of read only one technical paper. Got to reread it) www.treasury.gov/resource-center/tax-policy/tax-analysis/Documents/OTAtech03.pdfLooks very interesting. Food for thought. Based on Page-17 table (I am going to assume 300 million as US Population) 1% make 349,780 and above (i.e. 3 million) pay 31.3% of total taxes I am going to vote Obama and ask him to raise 1% income tax for top 10% and Any dividend earnings over 100K per year should be taxes at slightly higher rate. I am assuming people who have worked hard and saved and got dividend stocks should be able to live comfortably. But once they earn above average, they got to pay little more. Very interesting. Thanks for sharing your thought and material |
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Post by gopalbhat on Jul 10, 2011 20:54:56 GMT -5
Becky (the interviewer) says the rich are paying their fair share and half of Americans aren't paying any personal income tax. Buffet came swinging..."40 percent of the revenue in the United States comes from payroll taxes, 40 percent. And they're being— my cleaning lady is being charged a payroll tax. Her payroll tax, counting the portion her employer pays, is higher than my capital gains tax."
If you cut my tax rate to 0, I will still drink five of these ( I guess cherry coke). But if you cut my cleaning lady's payroll tax rate, she might drink one of these.
Economically, it makes sense. The rich will have all they want to have irrespective of a slight tax increase. But poor cannot. so cutting tax rate for them will probably increase their spending and economy might improve since rich are few in number
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