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Monday, September 26, 2011

'I'm Warren Buffett's Secretary'

Peter Pappas critiques the ad in MoveOn.Org Perpetuates Buffett Tax Lie.

http://taxprof.typepad.com/taxprof_blog/2011/09/im-warren.html

Celebrity Tax Lore, Tax | Permalink

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Comments

I wouldn't trust anything Peter Pappas writes about tax policy if he doesn't even know what "marginal rate" means. That's the amount of tax paid on the next $1 of income earned and for the "secretary" in his example, it's 10% income tax PLUS payroll taxes on top of that.

Posted by: CodeHead | Sep 27, 2011 9:00:57 AM

Lets see, Pappas is arguing that the marginal rate on ALL taxable income after deductions is 7% and Codehead above says a marginal rate can only be on the next $1 of income. Sorry, Codehead, but if used correctly in a sentence, a "marginal rate" can apply to more than the next $1 of income.

However,even if we accept your definition of marginal rate, the secretary is still at a rate lower thn Buffet's rate. Oh wait, she has to pay Social Security and Medicare taxes. Yet these taxes are suppose to be "contributions" that will be "guaranteed" to be repaid in the form of future retirement and retiree medical benefits.

I will concede Social Security and Medicare taxes should be included in her marginal INCOME tax rate, if you are prepared to acknowledge it is not a "guaranteed" program and is akin more to a Ponzi scheme that will eventually fail.

Posted by: DLN | Sep 27, 2011 10:18:23 AM

DLN:
I will concede Social Security and Medicare taxes should be included in her marginal INCOME tax rate, if you are prepared to acknowledge it is not a "guaranteed" program and is akin more to a Ponzi scheme that will eventually fail.

Done.

Posted by: the real anon | Sep 27, 2011 6:13:07 PM

The secretary is still at a rate lower thn Buffet's rate. Oh wait, she has to pay Social Security and Medicare taxes.

Posted by: web design Landon | Sep 28, 2011 10:37:52 PM

its weird to include payroll taxes for a comparison because the secretary will receive a benefit for those taxes paid but buffet, since he pays little to none, will not.

Posted by: carl | Sep 29, 2011 9:22:16 PM