With the recent talk over Warren Buffet’s comments about taxing Millionaires and Billionaires and the ensuing media response it got me thinking – at least about my own tax bills. Warren Buffet pays so little money in taxes (in percentage terms) because a majority of his income is through investments which are taxed at 15%. He may take a salary of $100k or so but the majority is taxed a much lower rate.
How can I get to the point where the majority of my income is coming from investments? Sure I need to invest more in the market and other securities, although I’m getting killed in the current market, but do revenues from my properties get put in the category? If not how do follow in that manner?