Warren Buffet Would Pay NO Taxes Under Cain's Plan

[DemocratSinceBirth]

Billionaire investor Warren Buffett’s push for increasing taxes on the very wealthiest Americans — who, due to the preferential tax treatment of investment income, often pay lower taxes than those in the middle-class — led to the creation of the Obama administration’s “Buffett rule.” The rule is aimed at ensuring that millionaires can’t use special treatment in the tax code to drive their tax rates down below that of their employees.

Republicans have met the Buffett rule with universal derision, calling it “class warfare.” “If it’s not class warfare, it’s highway robbery,” said 2012 GOP presidential candidate Herman Cain. “Pick my pockets, because that’s what he’s doing!” As it turns out, Cain’s much-touted 999 tax plan would basically do the opposite of the Buffett rule, driving Buffett’s already low tax rate down to new depths:

If the “9-9-9″ tax plan promoted by Herman Cain, a leading Republican presidential candidate, had been the law of the land last year, Warren Buffett would very likely have paid no income taxes, according to an analysis prepared for Yahoo News and The Lookout by the American Institute of Certified Public Accountants. At most, Buffett would have paid taxes on just 1 percent of his income.

http://thinkprogress.org/economy/2011/10/17/345663/buffett-nothing-under-999/

[dkf]

1. Actually he could land up paying 100% of his income if he spends enough.

The only way he pays no taxes is if he doesn't buy anything.

[DemocratSinceBirth]

2. Given His Income And Net Worth The Percentage He Spends On Sales Taxes Would Be Quite Small

.

[dkf]

3. Depends. Too bad he has sensible kids.

[DemocratSinceBirth]

4. Well

I suspect there is a bit of myth behind the notion that Warren Buffett is "everyman" but he doesn't seem to live the lifestyle of the "rich and famous".

Same thing with the departed Sam Walton.

[Cigar11]

6. Why spend ... ?

When you have as much money as he does ... the World is a FREE Meal!

[totodeinhere]

5. I oppose the 9-9-9 plan, but it is incorrect to assert that Buffet would pay "no taxes" under the

plan. He might not pay any income tax but he would certainly pay the 9% sales tax and the 9% business flat tax. However, I oppose the plan because it would shift too much of the tax burden to middle and lower income groups. But it would not mean that people like Buffet would pay no tax. I realize that you indicated that "At most, Buffett would have paid taxes on just 1 percent of his income." But in your headline you said "no tax."