The Lies of Warren Buffett
Ever hear billionaire investor Warren Buffett say that he pays less tax than his secretary? Does he really? Is our federal income tax code so unfair that a man with money to burn pays less tax than a does a minimum wage worker? Consider this for a moment. If a single person makes $7.25 an hour, works 40 hours a week and works an entire year, he/she will have paid $1,159 in federal income tax. No small amount of money for someone who only makes around $15,000 a year. However, when that person files their taxes in 2020 for 2019, they can take the standard deduction of $12,200 which makes their taxable income only $2, 875 for the year. That person has more than overpaid their taxes for the year and now will see a refund of at least $872. Therefore, that worker only has an effective federal income tax rate of 1.91% In contrast, an attorney for example making $125,000 a year having taken the standard deduction of $12,200 will have paid $14,631 in federal income tax and possibly stil