Thursday, October 13, 2011

Taxing the Rich: Warren Buffett reveals his 2010 income... a paltry $62.9million (and he paid just 10% of that in tax)

Warren Buffett is trying to lead by example, holding up his own payslip as a reason why the country's ultra rich should pay more in taxes.

Mr Buffett, 81, revealed today that he made $62,855,038 in 2010, proving that he clearly hasn't been going to bed worried about his financial future.

Even though he received nearly $62.9million last year, Mr Buffett only paid $6.9million in federal income taxes, which is just over 10 per cent of his total income.

That tax rate is far smaller than many who make less than the man nicknamed the 'Oracle of Omaha'.

The salary of the multi-billionaire is right at the heart of national political debate as he was the one that inspired President Obama to implement a national tax on the country's wealthiest one per cent.

The reason for the startling percentage is that only $39.8million of his salary was taxable because much of his income is generated from investments which are taxed at a significantly lower rate than standard wages.

'People who make money with money are getting taxed at a far lower rathe than people who make money by their own labor,' Mr Buffett told CNNMoney. Read More