Warren Buffet's income is predominately taxed as 'capital gains'...investment income on multibillions invested, as you said.. he has almost no 'salary'.
The tax rate issue (that he brought up) is: he pays 15% capital gains tax on billions, she pays 25% income tax on her 60-100 k salary.
I like the
idea of a fair tax, the one presented by Mike Huckelberry
!
It does tax on spending, and 'rich' people spend more $$$.
However, Poor people spend ALL their income 100% would be taxed, billionaires do not spend anywhere near 100% of their income, therefore they 'might' only be taxed on 2% of their income. That is an extreme example of a REGRESSIVE tax rate, which puts a disproportionate burden on the low income people.
Of course there are tax breaks for poverty level folks, but it did seem to hit
lower to middle enlisted military pretty hard; Their calculator said that I would
GAIN -$3000 approximately (that is minus). I did not spend a lot of time researching it, just enuff to know that the calculator said I was hosed if it worked the way it was then....before Huckleberry
dropped out of primary race. How many people here believe that someone like Terrel Owens (new 27 million contract) deserves a lower tax rate than the soldier who just posthumously received the Congressional Medal of Honor, for saving the lives of the crew in his tank? Of course he does not pay taxes now....but there are many like him in Iraq etc. No offense to T.O. I love the NFL, but I do not believe the football players are '
worth' more than Soldiers, Marines, Airmen and Sailors.....I need a ladder so I can get off my soap box...sorry.