I’m sure you’ve heard it. Warren Buffet’s secretary pays more in taxes than he does! It’s a very popular (and powerful sounding) headline that the media loves to use. Let me start off by saying, first off, if you are lookin for some kind of political tirade, you will not find that here. I want to approach this topic in a very logical and reasoned way. You are more than welcome to disagree with the reasoning and logic behind this topic (and we can still be friends!); however, I’m sick and tired of the media twisting and turning some very basic business and general math principles. My goal with this quick discussion is to hopefully help you speak clearly about this topic the next time it may come up in your everyday life. Or, maybe you never speak about it at all, but at least being able to listen to the discussion in a more informed way I would argue is a good thing. Putting all politics aside and looking at this topic through the lens of “why” and “how” is this possible, let’s dig into the reason the rich are paying less in taxes that many middle class Americans!
