Warren Buffet has spoke about this before when he wrote an op-ed for the NY Times entitled Stop Coddling the Super-Rich in August of 2011 where he thought it was ridiculous and unfair that his effective tax rate was lower than that of his personal secretary and called for Congress “to get serious about shared sacrifice“.
What are the mechanics behind tax structure that gives Buffet and other incredibly wealthy individual’s such an advantage? This Barron’s article explains a lot….
Warren Buffett’s Nifty Tax Loophole
Warren Buffett is fond of saying his tax rate is lower than his secretary’s. He does not publicize his tax returns, but for the tax year 2010, he paid $6.9 million on taxable income of $39.8 million, according to partial disclosures he made in 2011.