--- title: "Meaning & Key Takeaway of: If Warren Buffett made his money from…" description: "\"If Warren Buffett made his money from ordinary income rather than capital gains, his tax rate would be a lot higher than his secretary's. In fact a ver..." image: "https://sms4smile.com/quotes/i/cbc/michael-bloomberg-1293_bigs_if-warren-buffett-made-his-money-from-or_2152995.png" --- # If Warren Buffett made his money from ordinary income… ![“If Warren Buffett made his money from ordinary income rather than capital gains, his tax rate would be a lot higher than his secretary's. In fact a very small percentage of people in this country pay a big chunk of the taxes.” quote by Michael Bloomberg](https://sms4smile.com/quotes/i/cbc/michael-bloomberg-1293_bigs_if-warren-buffett-made-his-money-from-or_2152995.png) [Download](https://sms4smile.com/quotes/i/cbc/michael-bloomberg-1293_bigs_if-warren-buffett-made-his-money-from-or_2152995.png) [Open image](https://sms4smile.com/quotes/i/cbc/michael-bloomberg-1293_bigs_if-warren-buffett-made-his-money-from-or_2152995.png) > “If Warren Buffett made his money from ordinary income rather than capital gains, his tax rate would be a lot higher than his secretary's. In fact a very small percentage of people in this country pay a big chunk of the taxes.” [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The quote highlights how wealth from capital gains is taxed at lower rates than ordinary income, leading to a disproportionate tax burden on the wealthy. **In simple terms:** Capital gains are taxed less than regular income, so the rich pay less tax. Key Takeaway Consider tax reforms that equalize rates. Themes taxation inequality wealth distribution policy economics Mood critical analytical concerned Type policy economic informative When to use this quote - policy debate - legislative proposals - public finance - wealth management Key Concepts progressive tax capital gains tax loopholes Questions to Reflect On - Should tax rates be based on income type or total earnings? - How would equalizing taxes affect investment? A Different Perspective Lowering capital gains tax may reduce revenue and widen inequality. ★ ★ ★ ★ ★ No ratings yet [Bigs](https://sms4smile.com/quotes/about/bigs/) [Buffett](https://sms4smile.com/quotes/about/buffett/) [Buffett Money](https://sms4smile.com/quotes/about/buffett-money-3030341/) [Capital gains](https://sms4smile.com/quotes/about/capital-gains/) [Country](https://sms4smile.com/quotes/about/country/) [Facts](https://sms4smile.com/quotes/about/facts/) [Gains](https://sms4smile.com/quotes/about/gains/) [Gains Tax](https://sms4smile.com/quotes/about/gains-tax-346729/) [Higher](https://sms4smile.com/quotes/about/higher/) [Income](https://sms4smile.com/quotes/about/income/) [Made](https://sms4smile.com/quotes/about/made/) [Money](https://sms4smile.com/quotes/about/money/) [Ordinary](https://sms4smile.com/quotes/about/ordinary/) [Ordinary Income](https://sms4smile.com/quotes/about/ordinary-income-2334655/) [Pay](https://sms4smile.com/quotes/about/pay/) [People](https://sms4smile.com/quotes/about/people/) [Percentages](https://sms4smile.com/quotes/about/percentages/) [Rate](https://sms4smile.com/quotes/about/rate/) [Secretary](https://sms4smile.com/quotes/about/secretary/) [Taxes](https://sms4smile.com/quotes/about/taxes/) [Warren buffett](https://sms4smile.com/quotes/about/warren-buffett/) [Would be](https://sms4smile.com/quotes/about/would-be/) ## Related quotes > [Tax laws favor capital over labor, giving capital gains a lower rate than ordinary income. The rich get humongous mortgage interest deductions while renters…](https://sms4smile.com/quotes/robert-reich/tax-laws-favor-capital-over-labor-giving-capital-gains-a-lower-rate/) [Robert Reich](https://sms4smile.com/quotes/author/robert-reich/) > [The capital gains tax is 15 percent now. So I sit there in my office and I make a lot of money by capital…](https://sms4smile.com/quotes/warren-buffett/the-capital-gains-tax-is-15-percent-now-so-i-sit-there-in-my-office/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [To focus capital and entrepreneurship into empowering innovation, we should change is the capital gains tax rate. We would be better served by a…](https://sms4smile.com/quotes/anonymous/to-focus-capital-and-entrepreneurship-into-empowering-innovation-we/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [In real estate you can avoid ever having to pay a capital gains tax, decade after decade, century after century. When you sell a…](https://sms4smile.com/quotes/michael-hudson/in-real-estate-you-can-avoid-ever-having-to-pay-a-capital-gains-tax/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Well, certainly the Democrats have been arguing to raise the capital gains tax on all Americans. Obama says he wants to do that. That…](https://sms4smile.com/quotes/grover-norquist/well-certainly-the-democrats-have-been-arguing-to-raise-the-capital/) [Grover Norquist](https://sms4smile.com/quotes/author/grover-norquist/) > [After Independence, there were periods of very high taxation. So you didn't create wealth, how will you distribute it? When was the first time…](https://sms4smile.com/quotes/shiv-nadar/after-independence-there-were-periods-of-very-high-taxation-so-you/) [Shiv Nadar](https://sms4smile.com/quotes/author/shiv-nadar/) > [I'd like to give zero out capital gains tax and zero out the dividends tax, zero out alternative minimum tax, and zero out the…](https://sms4smile.com/quotes/michele-bachmann/i-d-like-to-give-zero-out-capital-gains-tax-and-zero-out-the/) [Michele Bachmann](https://sms4smile.com/quotes/author/michele-bachmann/) > [An unrealized capital gains tax will empower the federal government to access the private transactions of Americans, needlessly expand bureaucracy in Washington, and will…](https://sms4smile.com/quotes/byron-donalds/an-unrealized-capital-gains-tax-will-empower-the-federal-government/) [Byron Donalds](https://sms4smile.com/quotes/author/byron-donalds/) > [The biggest - one of the biggest barriers to driving economic growth is the capital gains tax rate. I propose taking it to zero.](https://sms4smile.com/quotes/herman-cain/the-biggest-one-of-the-biggest-barriers-to-driving-economic-growth-is/) [Herman Cain](https://sms4smile.com/quotes/author/herman-cain/) > [No one making less than $250,000 under Barack Obama's plan will see one single penny of their tax raised, whether it's their capital gains…](https://sms4smile.com/quotes/joe-biden/no-one-making-less-than-250-000-under-barack-obama-s-plan-will-see/) [Joe Biden](https://sms4smile.com/quotes/author/joe-biden/) > [Every time we've cut the capital gains tax, the economy has grown. Whenever we raise the capital gains tax, it's been damaged. It's one…](https://sms4smile.com/quotes/grover-norquist/every-time-we-ve-cut-the-capital-gains-tax-the-economy-has-grown/) [Grover Norquist](https://sms4smile.com/quotes/author/grover-norquist/) > [Buffett gave significant portions of his wealth to the Bill and Melinda Gates Foundation. Buffett made money for 50 years before he donated.](https://sms4smile.com/quotes/shiv-nadar/buffett-gave-significant-portions-of-his-wealth-to-the-bill-and/) [Shiv Nadar](https://sms4smile.com/quotes/author/shiv-nadar/) > [If you look at anyone who has achieved great success and wealth, people like Warren Buffett, Oprah Winfrey, or Lance Armstrong, they have all…](https://sms4smile.com/quotes/robert-kiyosaki/if-you-look-at-anyone-who-has-achieved-great-success-and-wealth/) [Robert Kiyosaki](https://sms4smile.com/quotes/author/robert-kiyosaki/) > [All capitalists should be like Warren Buffett, and he says he should be taxed more.](https://sms4smile.com/quotes/ed-asner/all-capitalists-should-be-like-warren-buffett-and-he-says-he-should/) [Ed Asner](https://sms4smile.com/quotes/author/ed-asner/) > [I admire people like Warren Buffett that are donating so much money to charity.](https://sms4smile.com/quotes/bethenny-frankel/i-admire-people-like-warren-buffett-that-are-donating-so-much-money/) [Bethenny Frankel](https://sms4smile.com/quotes/author/bethenny-frankel/) ## More by Michael Bloomberg > [I'm not going to run for president. No way, no how.](https://sms4smile.com/quotes/michael-bloomberg/i-m-not-going-to-run-for-president-no-way-no-how/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [Now, you might say – “But why should we pay people for doing what they’re supposed to do?” It’s a fair question – but…](https://sms4smile.com/quotes/michael-bloomberg/now-you-might-say-but-why-should-we-pay-people-for-doing-what-they-re/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [What I'm trying to do is to create excitement. So people looking at the Bloomberg's office building say, "My goodness, what's going on here?…](https://sms4smile.com/quotes/michael-bloomberg/what-i-m-trying-to-do-is-to-create-excitement-so-people-looking-at/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [You have to understand, we have better communications and better transportation, so people know what's available elsewhere and can get a message out, and…](https://sms4smile.com/quotes/michael-bloomberg/you-have-to-understand-we-have-better-communications-and-better/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [ The system \[in U.S.\] is designed for a two-party system. And those two parties have an interest in keeping third parties out. There's too… ](https://sms4smile.com/quotes/michael-bloomberg/the-system-in-u-s-is-designed-for-a-two-party-system-and-those-two/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [If you want to do something for your children and show how much you love them, the single best thing-by far-is to support organizations…](https://sms4smile.com/quotes/michael-bloomberg/if-you-want-to-do-something-for-your-children-and-show-how-much-you/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [We haven't had a world war in a long time. We do have mass movements of people out of Syria and North Africa. But,…](https://sms4smile.com/quotes/michael-bloomberg/we-haven-t-had-a-world-war-in-a-long-time-we-do-have-mass-movements/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [I think one of the great dangers here is going and categorizing anybody from one religion as a terrorist. That's not true... That would…](https://sms4smile.com/quotes/michael-bloomberg/i-think-one-of-the-great-dangers-here-is-going-and-categorizing/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [Stubborn isn't a word I would use to describe myself; pigheaded is more appropriate.](https://sms4smile.com/quotes/michael-bloomberg/stubborn-isn-t-a-word-i-would-use-to-describe-myself-pigheaded-is/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [Many of America's and New York's sons and daughters are around the world fighting for the freedoms that the Statue of Liberty stands for.](https://sms4smile.com/quotes/michael-bloomberg/many-of-america-s-and-new-york-s-sons-and-daughters-are-around-the/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [If you really believe that you're making a difference and that you can leave a legacy of better schools and jobs and safer streets,…](https://sms4smile.com/quotes/michael-bloomberg/if-you-really-believe-that-you-re-making-a-difference-and-that-you/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [The next day after I got fired, literally the next day, I started a new company.](https://sms4smile.com/quotes/michael-bloomberg/the-next-day-after-i-got-fired-literally-the-next-day-i-started-a-new/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [We all must recognize that homeland security funds should be allocated by threat and no other reason.](https://sms4smile.com/quotes/michael-bloomberg/we-all-must-recognize-that-homeland-security-funds-should-be/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [In New York City, a lot of people think "the great outdoors" is the area between your front door and a taxi cab.](https://sms4smile.com/quotes/michael-bloomberg/in-new-york-city-a-lot-of-people-think-the-great-outdoors-is-the-area/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) > [Is your company so small you have to do everything for yourself? Wait until you're so big that you can't. That's worse.](https://sms4smile.com/quotes/michael-bloomberg/is-your-company-so-small-you-have-to-do-everything-for-yourself-wait/) [Michael Bloomberg](https://sms4smile.com/quotes/author/michael-bloomberg/) [Explore all 259 Michael Bloomberg quotes ](https://sms4smile.com/quotes/author/michael-bloomberg/) ## More Bigs quotes > [I am certain that children always know more than they are able to tell, and that makes the big difference between them and adults,…](https://sms4smile.com/quotes/jacques-lusseyran/i-am-certain-that-children-always-know-more-than-they-are-able-to/) [Jacques Lusseyran](https://sms4smile.com/quotes/author/jacques-lusseyran/) > [It is said that history turns on small hinges. A human career, too, results from an accumulating series of decisions about large and small…](https://sms4smile.com/quotes/norman-vincent-peale/it-is-said-that-history-turns-on-small-hinges-a-human-career-too/) [Norman Vincent Peale](https://sms4smile.com/quotes/author/norman-vincent-peale/) > [I'm a true believer in prayer, a big believer in prayer.](https://sms4smile.com/quotes/janet-jackson/i-m-a-true-believer-in-prayer-a-big-believer-in-prayer/) [Janet Jackson](https://sms4smile.com/quotes/author/janet-jackson/) > [The biggest change for me as a mom was realizing I needed to put someone else before me. Now the hardest part about the…](https://sms4smile.com/quotes/kim-alexis/the-biggest-change-for-me-as-a-mom-was-realizing-i-needed-to-put/) [Kim Alexis](https://sms4smile.com/quotes/author/kim-alexis/) > [I'm a big fan of all the Boston guys that are acting - Matt Damon , Ben Affleck, Mark Wahlberg - they made a…](https://sms4smile.com/quotes/kenny-wormald/i-m-a-big-fan-of-all-the-boston-guys-that-are-acting-matt-damon-ben/) [Kenny Wormald](https://sms4smile.com/quotes/author/kenny-wormald/) > [The only regret I have in my career, is my managers wanted a big payday, and I wanted four or five more fights before…](https://sms4smile.com/quotes/gerry-cooney/the-only-regret-i-have-in-my-career-is-my-managers-wanted-a-big/) [Gerry Cooney](https://sms4smile.com/quotes/author/gerry-cooney/) > [It goes to show you how we in the press so often miss the big stories that are right under our noses. There is…](https://sms4smile.com/quotes/roger-ebert/it-goes-to-show-you-how-we-in-the-press-so-often-miss-the-big-stories/) [Roger Ebert](https://sms4smile.com/quotes/author/roger-ebert/) > [Okay, so I'll admit I'm curious. Big deal. We both know what that leads to. Dead cat.](https://sms4smile.com/quotes/susan-elizabeth-phillips/okay-so-i-ll-admit-i-m-curious-big-deal-we-both-know-what-that-leads/) [Susan Elizabeth Phillips](https://sms4smile.com/quotes/author/susan-elizabeth-phillips/) > [I don't want this to be a distraction. This has been distracting enough. I'm not going to rehash this going forward. I'm sure other…](https://sms4smile.com/quotes/jayson-werth/i-don-t-want-this-to-be-a-distraction-this-has-been-distracting/) [Jayson Werth](https://sms4smile.com/quotes/author/jayson-werth/) > [I didn't get how big it was until I went home, turned on the television and saw it on all the news, and later…](https://sms4smile.com/quotes/paul-simon/i-didn-t-get-how-big-it-was-until-i-went-home-turned-on-the/) [Paul Simon](https://sms4smile.com/quotes/author/paul-simon/) > [It’s a small thing to help one animal, but to that one animal it’s a big thing](https://sms4smile.com/quotes/gene-baur/it-s-a-small-thing-to-help-one-animal-but-to-that-one-animal-it-s-a/) [Gene Baur](https://sms4smile.com/quotes/author/gene-baur/) > [Since I was a little child, my nose - I think it's too big.](https://sms4smile.com/quotes/celine-dion/since-i-was-a-little-child-my-nose-i-think-it-s-too-big/) [Celine Dion](https://sms4smile.com/quotes/author/celine-dion/) > [People forget that there is a big difference between coercion and persuasion. The idea that evangelism is coercive is nonsense.](https://sms4smile.com/quotes/mark-dever/people-forget-that-there-is-a-big-difference-between-coercion-and/) [Mark Dever](https://sms4smile.com/quotes/author/mark-dever/) > [I turn a lot of stuff down - big, big movies, the kind I wouldn't want to go to the cinema to see.](https://sms4smile.com/quotes/matthew-fox/i-turn-a-lot-of-stuff-down-big-big-movies-the-kind-i-wouldn-t-want-to/) [Matthew Fox](https://sms4smile.com/quotes/author/matthew-fox/) > [I got in trouble my whole life for having a big mouth.](https://sms4smile.com/quotes/steven-tyler/i-got-in-trouble-my-whole-life-for-having-a-big-mouth/) [Steven Tyler](https://sms4smile.com/quotes/author/steven-tyler/) [Browse all 15,539 Bigs quotes ](https://sms4smile.com/quotes/about/bigs/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "If Warren Buffett made his money from ordinary income rather than capital gains, his tax rate would be a lot higher than his secretary's. 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