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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That is completely different thing, you compare someone who owns a business and someone on a simple salary.
Not to mention that paying for company car is expenses. You do not pay for the car and pay just a fraction of that amount (that you would pay for company car) to taxes. So it even turns out better in terms of less expenses (eg instead of 100% he spends on the car, you would spend 27% or whatever you tax bracket is).
Get smart and compare adequate situations next time.