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|Subject: Re: Is your 401(k) Inadequate For Retirement||Date: 7/31/2008 6:29 PM|
|Author: ChurchyLaFemme||Number: 13766 of 20069|
No doubt Warren pays a lot of his taxes at the 15% rate for long-term capital gains and dividends. And he should pay the lower rate because the economic activity that generated the dividends and gains has created a lot of jobs and a lot of wealth for a lot of people (Berkshire shareholders). This kind of behavior should be encouraged so we get more of it. In fact, if it weren't for the stuff Buffet has done, his secretary wouldn't have a job.
You're only looking at it from only one side, fleg. Without all those employees at Warren's disposal, he couldn't run the ship. In fact, there would be no ship. Maybe a cabin cruiser, but no ship. He needs them as much as much as they need him. Without the stuff they've done in support of Berkshire-Hathaway's goals, he wouldn't be in the position he's in.
It's a two way street.
As for me, well, let's see. I've hired an electrician, a plumber, and a carpenter in the last few months. They've helped me achieve my renovation goals and I don't feel compelled to think that they should pay more taxes than I do simply because I provided them with some income. Nor do I think that my kids (family shareholders) should pay more in taxes because I've generated wealth for which they will eventually be beneficiaries.
I'm no Warren Buffet. I'm perfectly happy being in the 0% cap gains bracket for the next couple of years. With restrictions of course, but what the hell? I'm also quite happy making sure I stay in the 15% marginal income tax bracket. How about you?
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