Not All Income Is Created Equal

It seems like politicians never tire of discussing whether the rich pay their fair share of taxes. In  the 2012 election, there was much discussion in the political arena about the fact that Warren Buffett (one of the wealthiest people in the world) pays taxes at a lower marginal rate than his secretary. “How can a man who is worth billions and earns millions every year have a lower tax rate than his middle-class secretary?” they would say. “What tricks do his accountants and attorneys use to get his taxes so low? What secrets do they know?”

In reality, there is no secret involved in how he reduced his tax ...

Get Tax Insight: For Tax Year 2013 and Beyond, Second Edition now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.