How Much Do Rich People Pay in Capital Gains Taxes? It's Double Taxation
December 25, 2012 - 12:53pm
I try to stay as apolitical as possible on this blog for reasons of keeping this site informative on actual business topics. I decided to write this article due to the statements I always hear about the amount of taxes rich people get away with NOT paying. Warren Buffett, who I truly love as an investor, speaks a bit inaccurately about his personal taxes. He always complains that he only pays 17% or so of his income in taxes while his staff, who make CONSIBERALY less, pay around 25% to 30% in taxes. But is it true?
Well, let’s do a little background. I currently own several businesses under Limited Liability Company (LLC) ownership structures. What this means is that my income from those businesses is sent directly to my pesronal tax return and I am taxed at my personal income tax levels and the company pays no income taxes. For this example, let...Continue reading this article »