Monday, June 23, 2014
In response to Warren Buffet’s claims that the ultra rich are paying much less in taxes than others and calling for a remedy to the inequality, the Tax Foundation analyzed Buffett’s argument. The analysis claims that while it may appear on the surface that those who make the least are paying the most in taxes, when all factors are taken into account the rich are actually paying more than their fair share. The analysis points out that the income for different groups come from different sources, such as dividends from stocks versus salary positions, and while the tax rates for dividends is lower they are also taxed prior to the funds being released to the individual.
See Robert Milburn, Tax Myths, Barron’s, June 16, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.