The Not Overtaxed Billionaire – Warren Buffet Releases Tax Information

Including FICA Payroll Tax It’s a Whopping . . .

Billionaire Warren Buffet has been a terrible thorn in the side of Conservatives who maintain (A) that rich people are overtaxed, (B) rich people need to have their tax bills reduced and (C) if the taxes on rich people are reduced they will go out and invest and creates jobs and grow the economy.  Now none of that is true, and Mr. Buffet has said so and maintained that his secretary and everyone in his office who makes a whole lot less than he does pay a higher effective rate of tax.

Mr. Buffet has so far refused to release his tax returns, but he has just now provided this information, which comes to us via the excellent web site, Tax Prof Blog.

Buffett Releases 2010 AGI ($62.9m), Taxable Income ($39.8m) & Tax ($6.9m)

Following up on last month's post, Republicans Demand Buffett's Tax Return: Warren Buffett yesterday sent this letter to Rep. Tim Huelskamp (R-Kan.) (responding to this letter from Rep. Huelskamp), declining an invitation to release his tax return but disclosing this information from his 2010 Form 1040:

• Adjusted Gross Income (line 37):  $62,855,038
• Taxable Income (line 43):  $39,814,784
• Federal Income Tax (line 60):  $6,923,494

Mr. Buffett also reported that he paid $15,300 in payroll taxes, resulting in a 17.4% effective tax rate:

($6,923,494 + $15,300)/$39,814,784 = 17.4%

Mr. Buffett said he would release his full tax return if the other 399 of the richest 400 Americans release theirs.

Ok, don’t anyone hold their breath waiting for the other 399 wealthiest Americans to release their tax returns.  Most if not all will readily say that they are horribly overtaxed, but you will just have to take their word for that.  After all, what have they got to hide?