Warren Buffet is now famous for claiming that his secretary pays more in taxes than he does. Forget for a second that she doesn’t literally pay more. Also forget for a second that she most certainly doesn’t pay the rate that Buffet claims she does.
Instead, focus on Buffet. And his salary:
Warren Buffett, the billionaire chief executive officer of Berkshire Hathaway Inc. (BRK/A), was paid a $100,000 salary for a 30th straight year after warning that excessive executive compensation can hurt shareholders.
Buffett, 80, received no bonus in 2010 and he doesn’t get stock options or grants, the Omaha, Nebraska-based firm said today in a filing. Buffett’s personal and home-security services paid for by Berkshire cost $349,946. The company’s compensation committee has determined salaries since 2004. Buffett, Berkshire’s chairman and largest shareholder, formerly recommended his own salary to the board.
It’s reasonable to conclude that Buffet will earn another $100,000 next year. Plus, of course, the security compensation. So, if he gets his way and Obama and the Democrats raise the marginal tax rate from the 35% it is now to what ever they wanna move it to, guess what happens to Buffet’s tax burden?
It remains almost exactly the same.
- Buffett’s adjusted gross income last year was $62,855,038
- Buffett’s taxable income last year was $39,814,784
- Buffett paid $15,300 in payroll taxes last year
- Buffett’s federal tax bill came to $6,923,494, or 17.4% of his taxable income last year