Why might the effective tax rate for the extremely wealthy Warren Buffett be lower than the effective tax rate for a single taxpayer with an AGI of $75,000 (2011)?© BrainMass Inc. brainmass.com June 4, 2020, 1:51 am ad1c9bdddf
First, we should define what the effective tax rate is: Actual income tax paid divided by total taxable income before tax, and usually expressed as a percentage.
Next we look at a Form 1040 to see that it is the amounts on line 43 and line 60 on page 2 (2010 Form 1040). http://www.irs.gov/pub/irs-pdf/f1040.pdf
The reasons why Warren Buffet's ...
The 287 word solution explains the concepts and gives 9 reasons why Warren Buffet's effective tax rate may be less than a single taxpayer with an AGI of $75,000.