Super Rich's Tax Rate Plummets

Quite a bit—but it likely won't happen

(NEWSER) - Warren Buffett made waves yesterday when he told the federal government to stop "coddling" him and other wealthy Americans and raise taxes on the rich. His plan would roll back the Bush tax cuts on people who earn more than $1 million and on capital gains and dividends income, and would close the loophole that allows a lower tax rate for hedge fund managers. But how much would it actually help? Quite a bit, writes David Kocieniewski in the New York Times : "The tax increase on all three fronts would generate as much as $500 billion in new revenue over the next decade." More»

Let's have some real 'shared sacrifice'

(NEWSER) - Washington keeps talking about “shared sacrifice”—but it's not asking the mega-rich to join in, writes Warren Buffett in the New York Times . “While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks.” It seems that lawmakers “feel compelled to protect us, much as if we were spotted owls or some other endangered species.” The investor offers himself as a case in point: Last year, his taxes amounted to just 17.4% of his taxable income, while everyone else in his office paid an average of 36%. More»

But rates will increase in the coming years

(NEWSER) - Griping about high taxes? Not so fast: Federal tax bills are at historic lows this year, and for the third consecutive year, families and businesses will pay less than they did under George W Bush. The government’s take—as a share of the national economy—is its lowest since 1950, the AP reports. And we have the weak economy and an increasing number of tax breaks to thank for the fact that income tax payments will be almost 13% lower than they were in 2008. More»

You may be able to deduct college courses, disaster losses

(NEWSER) - If you've put off your taxes until the last minute, here's a little reward for your procrastination: Time offers seven tax breaks that could save you money—now that you actually know about them:

• Higher education: There are certain credits available for qualified tuition, and you may not even need to be in a degree program to be eligible for them. Deductions are also available for college-related expenses like loan interest and room and board.
• Taking care of a sick parent: Though it may not be simple, it could be worth it to look into getting your parent declared as a dependent if you provide half or more of his or her financial support—even if the parent doesn't actually live with you.

Family taxed more than $160K

(AP) - President Obama and his family paid more than $160,000 in federal taxes last year, the White House says. 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. More»