Quote:
Originally Posted by Rochard
No, they don't. This is why Warren Buffet pays less in taxes than his secretary. They might be taxed at a higher rate, but they have more loopholes. You see, his secretary makes $x per year and has a certain percentage of taxes taken out. But Warren Buffet pays for her company car, and writes that off as an expense. Same thing with his limo and his limo driver. When your car breaks down you pay to fix it. When Warren Buffet's secretary's car breaks down, it's a business expense he'll write off.
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You forgot to mention that the secretary happens to get many untaxed benefits... company car... health care... 401k... education... social security contributions by employer... unemployment insurance paid... stock options... various other perks, like discounts on employer's products... free phone service... etc...
it's not uncommon for an employee to get almost as much in untaxed benefits as they get in actual salary...
but "Warren Buffet pays less in taxes than his secretary" sounds so much cooler than the truth...