When Warren Buffet, formerly the richest man in America (he's down to #2 on the list at 30+ BILLION dollars) says this... ] Now the Senate says that dividends should be tax-free to ] recipients. Suppose this measure goes through and the ] directors of Berkshire Hathaway (which does not now pay a ] dividend) therefore decide to pay $1 billion in dividends ] next year. Owning 31 percent of Berkshire, I would ] receive $310 million in additional income, owe not ] another dime in federal tax, and see my tax rate plunge ] to 3 percent. ] ] And our receptionist? She'd still be paying about 30 ] percent, which means she would be contributing about 10 ] times the proportion of her income that I would to such ] government pursuits as fighting terrorism, waging wars ] and supporting the elderly. Let me repeat the point: Her ] overall federal tax rate would be 10 times what my rate ] would be. I certainly hope someone is listening. Dividend Voodoo (washingtonpost.com) |