Is this why 9/9/9 is a joke ? Warren Buffet would pay 440k?

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NOpublican'sin2012

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Herman's 9/9/9 plan would have Warren Buffet with 40 million in income paying 440k in federal income tax under The 9/9/9plan . What a deal for him http://news.yahoo.com/blogs/lookout/warren-buffett-likely-pay-no-income-taxes-under-215446867.html
Margret he paid 7 million last year
midnyter they did the math in the source . Cant you read?
 
Buffet donated $23 million to private institutions and $0 to the government. You would think by his rhetoric the reverse would be the case.
 
Lets actually do the math instead of feeling it.

40 million in straight income (not capital gains) means he would pay 3.6 million, plus he would pay 9% tax on any personal purchases he made, and another 9% on any purchases he made for his business.

That's just a little above the 440k you said he'd pay.

The two things it would do is:
1. Get the government out of the deciding who's winning and who's losing game.
2. Cut the IRS in half.
 
The bigger absurdities happen at the low income end of the scale, where a 9% federal sales tax on top of whatever state or local sales taxes are already in place would starve a lot of people.

Why anyone would take a flat tax seriously today is a mystery, since the gap between the rich and the poor is widening all the time. But don't worry; it will never happen.
 
I think the issue would be that he would not be paying on his current amount. In other words he's paying on his income after all these write offs and crap. Under 9-9-9 I believe he would be paying on all income without any cuts or contributions. Buffet said in 2010 he paid 7 million in taxes, but under 9.9.9 he'd have to pay on the billions from berkshire hathaway he was protected from under current law. I think the problem you have is you are counting his income based on current tax practices, but his income would be counted differently under the new system.

Like for example I make say 300 million a year under IRS rules but my taxable income after everything is 50 million, so I end up paying 7 million income tax, which is about 15% ish. But under 9.9.9 i pay 9% of 300 million not the 50 million adjusted down with all these deductions and crap. So now Buffet ends up paying the neighborhood of 27 million. But the result would be buffet would have no reason to donate 23 million like he did in 2010 to charity to get tax write offs. In the end instead of paying 7 million in 2010 for IRS and 23 million for deductions and paying over 30 million towards society he'd be paying 27 million straight to uncle sam.

The impact on middle class would also be confusing, for example a family making 60,000 a year might have a very low tax liability due to child tax credits and stuff like that, but under this play you don't get that. So taxes go way up, but you don't pay FICA, so the result would actually be more IRS tax but less overall fica/irs combined tax.
 
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