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Buffett's First Tax Bill: Just $7 as a Teen
15 Apr
Summary
- Buffett paid $7 in taxes on $592.50 earned as a 14-year-old paper boy.
- His company Berkshire Hathaway paid $26.8 billion in taxes in 2024.
- Buffett advocates for higher taxes on the wealthy.
Warren Buffett's financial journey began with a $7 tax payment at age 14, derived from earnings of $592.50 as a newspaper delivery boy in 1944. This initial tax filing, which he shared publicly, detailed minor business expenses for bicycle upkeep and watch repair, showcasing early financial acumen. His income that year, equivalent to over $11,000 today, required him to file under existing IRS regulations.
Decades later, Buffett's perspective on taxation evolved significantly. In 2024, Berkshire Hathaway reported paying a record $26.8 billion in taxes. Buffett himself has been a vocal advocate for higher taxes on the wealthy, famously noting that his effective tax rate was lower than that of his secretary. This advocacy even influenced policy discussions, such as the proposed 'Buffett Rule' in 2012, which aimed to ensure high earners paid a minimum tax rate.
