“As a registered investment advisor, I work with wealthy people on a daily basis,” said Dave Young, president of Paragon Wealth Management. “Regardless of what the president says, these people pay a lot of taxes."
Provo, Utah (PRWEB) October 13, 2011
Paragon Wealth Management’s president, Dave Young, posted his opinion on his blog, Money Managers Live, about Warren Buffett’s claim that he pays less in taxes than his secretary.
Young said Buffett’s investment performance has suffered the past 13 years, which could be one of the reasons he claims to pay less in taxes than his secretary. From June 30, 1998 to August 31, 2011 he has returned only 2.6 percent compounded to his investors in Bershire Hathaway. Young said another reason could be that his secretary gets paid significantly more than other secretaries and is in a higher tax bracket.
“I’m only speculating, but Warren owns several large insurance companies,” said Young in his article. “It is very much to the benefit of his insurance companies to have high tax rates. Because of the tax preferential treatment that insurance products receive, those companies would benefit significantly from higher tax rates. In that way Buffett would benefit from higher taxes.”
Young agrees that everyone should pay their fair share of taxes, but he doesn’t believe that Warren Buffett or President Obama should make up facts to mislead the public that the rich are not paying their fair share.
“As a registered investment advisor I work with wealthy people on a daily basis,” said Young. “Regardless of what the president says, these people pay a lot of taxes. It could easily be argued that they pay much more than their fair share.”
Young said the top 10 percent of earners pay 70 percent of all income taxes. According to the Tax Policy Center, the average person making $50,000 pays $6,250 in Federal Income Taxes, $75,000 pays $11,250 and $1,000,000 pays $291,000.
“Do the rich get to use the roads more or do they get better police and fire protection?” asked Young. “Do they get better protection from the military? I know they get much more attention from the IRS.”
Visit moneymanagerslive.com to read the full article.
About Paragon Wealth Management
Paragon Wealth Management is a registered investment advisor(RIA) in Utah that actively manages all types of traditional and retirement accounts such as IRA and 401(K) rollovers, and pensions and trusts. Paragon has received numerous awards such as the Best of State award in Investment Advisory Services in 2011, and the NABCAP Premier Advisor award in 2010. Paragon has also been recognized on several lists such as WealthManagerWeb's Top Wealth Manager's list in the U.S. in 2010 and others. Call 800-748-4451 or visit http://www.paragonwealth.com for more information.
Paragon cannot guarantee the accuracy of information from other sources. Opinions are as of the dates indicated only. This report is not a solicitation for any security. Past performance is not a guarantee of future results. Investments in securities involve the risk of loss. Do not rely upon this information to predict future investment performance or market conditions. This information is not a substitute for consultation with a competent financial, legal, or tax advisor and should only be used in conjunction with his/her advice.