Warren Buffett has an op-ed inwards today's NY Times on 1 of his most pop themes: The rich should pay to a greater extent than inwards taxes. At showtime blush, his pose seems noble: H5N1 rich guy says that people similar him should pay to a greater extent than to back upwards the commonweal. But on closer examination, 1 realizes that Mr Buffett never mentions doing anything to eliminate the tax-avoidance strategies that he uses most aggressively. In particular:
1. His society Berkshire Hathaway never pays a dividend merely instead retains all earnings. So the provide on this investment is alone inwards the degree of uppercase gains. By non paying dividends, he saves his investors (including himself) from having to directly pay income revenue enhancement on this income.
2. Mr Buffett is a long-term investor, then he rarely sells as well as realizes a uppercase gain. His unrealized uppercase gains are untaxed.
3. He is giving away much of his wealth to charity. He gets a deduction at the amount market value of the stock he donates, most of which is unrealized (and thus untaxed) uppercase gains.
4. When he dies, his heirs volition operate a stepped-up basis. The income revenue enhancement volition never collect whatever revenue from the substantial unrealized uppercase gains he has been accumulating.
To endure sure, in that place are pros as well as cons of changing the provisions of the revenue enhancement code of which Mr Buffett takes advantage. Tax policy ever involves hard tradeoffs. But it seems strange to me that whenever Mr Buffett talks nearly taxing the rich more, the "loopholes" that he uses never look to operate inwards into the conversation. Sumber https://gregmankiw.blogspot.com/
1. His society Berkshire Hathaway never pays a dividend merely instead retains all earnings. So the provide on this investment is alone inwards the degree of uppercase gains. By non paying dividends, he saves his investors (including himself) from having to directly pay income revenue enhancement on this income.
2. Mr Buffett is a long-term investor, then he rarely sells as well as realizes a uppercase gain. His unrealized uppercase gains are untaxed.
3. He is giving away much of his wealth to charity. He gets a deduction at the amount market value of the stock he donates, most of which is unrealized (and thus untaxed) uppercase gains.
4. When he dies, his heirs volition operate a stepped-up basis. The income revenue enhancement volition never collect whatever revenue from the substantial unrealized uppercase gains he has been accumulating.
To endure sure, in that place are pros as well as cons of changing the provisions of the revenue enhancement code of which Mr Buffett takes advantage. Tax policy ever involves hard tradeoffs. But it seems strange to me that whenever Mr Buffett talks nearly taxing the rich more, the "loopholes" that he uses never look to operate inwards into the conversation. Sumber https://gregmankiw.blogspot.com/
