State of the Union 2012: Obama unveils ‘Buffett Rule’

While the president and  Democrats in Congress lust for the so-called ‘Buffett Rule,’ a tax reform named for billionaire Warren Buffett which would create a top marginal tax rate of 30 percent for every dollar earned after the first million earned in a year. While the existing top marginal tax rate is supposed to be 35% there are several loopholes the ‘Buffet Rule’ “aims to end.

However, there are approximately one billion things that our president and Buffett are neglecting to tell the American people.

Acording to a Newsmax Moneynews story entitled: Report: Buffett's Berkshire Owes $1 Billion In Back Taxes.

Billionaire investor Warren Buffett triggered a major debate over taxes recently when he wrote in The New York Times that he should be paying more to the federal government. He called on Washington lawmakers to up tax rates on the rich.

But it turns out that Buffett’s own company, Berkshire Hathaway, has had every opportunity to pay more taxes over the last decade. Instead, it’s been mired in a protracted legal battle with the Internal Revenue Service over a bill that one analyst estimates may total $1 billion.

Yes, that’s right: while Warren Buffett complains that the rich aren’t paying their fair share his own company has been fighting tooth and nail to avoid paying a larger share.

The story of Berkshire's years-long tax battle, which is generally known in business circles, took on new life this week when a group called Americans for Limited Government (ALG) reported that, according to Berkshire Hathaway’s own annual report, the company is embroiled in an ongoing standoff over its tax bills.

That report, in turn, was cited in an editorial in The New York Post.

“Obvious question: If Buffett really thinks he and his 'mega-rich friends' should pay higher taxes, why doesn’t his firm fork over what it already owes under current rates?” the Post opined.

“Likely answer: Buffett cares more about shilling for President Obama -- who’s practically made socking “millionaires and billionaires” his re-election theme song -- than about kicking in more himself.”  Click to read the full text of this article...

Update on Friday, April 13, 2012 at 11:33 AM by Basil Ryan

Obama tax return shows 2011 earnings of $789,674

The White House says President Barack Obama and his family paid more than $160,000 in federal taxes last year.

The president's 2011 federal income tax return shows reported adjusted gross income of about $790,000 last year. About half of the first family's income is the president's salary. The White House says the rest comes from sales of Obama's books.

Obama's effective tax rate is just above 20 percent—lower than many Americans who earn less. The president has made tax-rate fairness a campaign issue. Read more…

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