Originally Posted by Arkie
When Warren Buffet says he only pays a 15% effective tax on his income, that's because his income mainly comes from capital gains and dividends, and he is completely ignoring the fact that the companies he owns must pay a corporate income tax of as much as 35% before he can receive those gains and dividends.
Fortunately, we do have access to facts
that do not distort or color the picture. The chart below uses the numbers as crunched by the Congressional Budget Office. The effective total tax rate
shown is the ratio of total federal taxes (income, social security, corporate, excise)
divided by comprehensive household income. As Greg Mankiw notes, our tax system is highly progressive: "the rich face average tax rates more than twice those of the middle class, and about seven times those of the lowest quintile."
And these effective tax rates include all the benefits of whatever deductions may have been available to individuals and companies along the way.
This is inaccurate as you are only talking about one side of the equation. An accredited investor is outside the normal rules that govern FDIC. Once you achieve this you are, without a doubt, offered better investments, more sophisticated means to bypass federal rules, and despite Sarbannes Oxley are more than capable of getting insane returns on investments 80% of Americans have no idea even exist.
The bottomline is the party is over and the loopholes need to be closed. I think it is nothing short of childishness that the "wealthy" are being so immature about the larger issue of our own nation building and are so obsessed with profits. Do they not see the profits they can make right here in America? I do not ask them to stop pillaging but pillage so that it benefits us all.