http://money.cnn.com/2007/06/26/news/newsmakers/clinton_buffett/index.htm So how does Buffet pay only 17.7% in taxes? There just doesnt seem to be many loopholes left in the tax law. We know what cap gain taxes are, so how does he get his taxes so low?
Do you think Buffet jumps in his minivan, fights rush hour traffic, punches a time clock and works on the line? Cap tax rate is 15% in the US, and nothing on certain investment vehicles. http://en.wikipedia.org/wiki/Capital_gains_tax
Oh yes, Im accustomed to trading short term so much, I forget about the 15% rate on long term cap gains.
and while paying 17% of his income it is about only .00000000001% of his net worth ( obviously im shooting number out me ass , but you get the point )...and that is the ultimate goal of becoming rich, building non taxable wealth....but since most spend more or at par of what they make they will mostly always pay a big chunk of their net worth in the end....