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The numbers don't add up to the macro numbers, though--- the governments at all levels added together pull in about 25-30% of U.S. GDP in taxes, not 40%.

One thing throwing off his numbers is that he assumes all income to be ordinary income, whereas a large proportion of Americans' income, especially at the high end, get classified as capital gains or qualified dividends, which are taxed at lower rates. I believe Warren Buffett calculated that his real tax rate was 18%, for example.



I make considerably less than Warren, and virtually none is capitol gains. After home mortgage deduction, charitable deductions, etc. My effective federal tax rate was like 7.2% (If I remember what TurboTax told me correctly). The previous year it was 6.9%. My marginal federal bracket rate is 28% ($82,400-171,850).

Warren really like to talk that crap up about how he pays less taxes than his secretary. To me his secretary just needs a better tax guy.


Are you forgetting about the 12.4% you pay to SS? How about 2.9% to Medicare? Now let's add in sales and property taxes etc.

PS: Relative to his income his sales and property taxes are well under 0.1%.




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