Warren's real federal tax rate on 99% of his income: 59%
A portfolio company makes $1 in income. Without any taxes, Warren could put $1 in his pocket if he wished. Instead the portfolio company (Wells Fargo) pays 33% taxes, then the holding company (Berkshire) pays 29% taxes, then Warren pays 15% dividend taxes. In the end it's 59%, all of which is really truly a tax on Warren once the smoke and mirrors go away.
(- 1 (* 1 0.67 0.71 0.85)) => 0.595655
So right now 7 out of 12 months of his income is taken by the federal government, and he thinks they should take more! Maybe 9 out of 12 months, where ideally (in his mind) the state government would then come in and take the rest.
A portfolio company makes $1 in income. Without any taxes, Warren could put $1 in his pocket if he wished. Instead the portfolio company (Wells Fargo) pays 33% taxes, then the holding company (Berkshire) pays 29% taxes, then Warren pays 15% dividend taxes. In the end it's 59%, all of which is really truly a tax on Warren once the smoke and mirrors go away. (- 1 (* 1 0.67 0.71 0.85)) => 0.595655
So right now 7 out of 12 months of his income is taken by the federal government, and he thinks they should take more! Maybe 9 out of 12 months, where ideally (in his mind) the state government would then come in and take the rest.