Buffett can just pony up

I posted earlier that it's "Time to audit Buffett's books," because if it's true that "Warren Buffett paid less tax than his secretary, either his secretary's salary is higher than Buffett's or he's cooked his reported income somehow."

In response, reader, Joel W. emailed:

I believe that Warren Buffet said that he paid a lower percentage of his total income than his secretary, rather than that he paid less. He mentioned somewhere that he paid $6,000,000 in taxes.

Of course, he probably was talking about his total income, before deductions.

He could certainly pay more in taxes if he wanted to by not taking any deductions and not putting his money into a tax-exempt trust.

Full disclosure: I work for GEICO Insurance, which is owned by Berkshire-Hathaway, Mr. Buffett's company. Other than that, I have no connection with him; all I know is what I read in the blogs.

Joel, if all you know is what you read in the blogs, and assuming that you read a fair number and cross section of blogs, then you are probably unusually well informed. And you are right that if Mr. Buffett did not claim some deductions, then he would pay more money in taxes.

But it's easier even than that for Warren Buffett - or anyone else who think s/he is paying too little in federal taxes. I am hardly the first to point out that the US Treasury will accept direct donations. For example, anyone can send money designated to pay down the federal debt:

How do you make a contribution to reduce the debt?

There are two ways for you to make a contribution to reduce the debt:

• You can make a contribution online either by credit card, checking or savings account at Pay.gov  

• You can write a check payable to the Bureau of the Public Debt, and in the memo section, notate that it's a Gift to reduce the Debt Held by the Public. Mail your check to:

Attn Dept G
Bureau of the Public Debt
P. O. Box 2188
Parkersburg, WV 26106-2188

So if Warren Buffett - or anyone else - thinks they pay too little to the federal government, all they have to do is pony up more.