The incomparable Mark Shields (any News Hour fans out there?) quotes Mr. Warren Buffett:
In my office, I have 18 or so people there, and I ask them to compute line 63, which is their tax, and then add payroll taxes, and compare it to line 43, which is their taxable income. And these people who make anywhere from $50,000 to $750,000 a year … and the lowest person in the office pays a higher rate than I do. I paid 17.7 percent last year, counting payroll taxes. … The [employees’] average was twice mine. [Private equity managers] say they fix up companies and they get paid for doing that. On balance, they’re paying a 15 percent tax rate on that and no payroll taxes, and somebody that fixes up the restroom is paying 15.3 percent in payroll taxes, just to start with. [The janitor who works] for peanuts pays a higher tax rate than people who fix up companies [for] hundreds of millions of dollars annually in income [emphasis added].
That’s right: on average, Warren Buffett’s employees pay twice as much of their income in taxes as he does. That means you probably pay a higher percentage of your income in taxes than the second-richest person in the world. Thank God the new Democratic Congress is ignoring the fact that the industry gave “77 percent of its $8.2 million in donations to Democratic candidates” and cracking down on unfairly regressive taxation anyway. Oh, wait:
In Washington, D.C. last week, Senate Majority Leader Harry Reid’s office confirmed that the Senate will take no action this year on closing the tax loophole that saves private equity and other private investment fund managers an estimated $12 billion a year.
So what does all that money buy besides huge yachts? Well, it looks like there’s a sale on politicians! Get them while the getting is good!