How the Rich Legally Pay Less Tax.

Added: 2026-05-05

[00:00:00]Warren Buffett once told Congress that he paid a lower effective tax rate than his secretary. He wasn't complaining. He was explaining how the system works.

[00:00:11]In 2021, a leaked IRS database obtained by ProPublica revealed the actual taxes paid by America's 25 wealthiest individuals over a five-year period.

[00:00:25]Their combined wealth grew by $401 billion.

[00:00:30]They paid $13.6 billion in taxes.

[00:00:35]That is an effective rate of 3.4%.

[00:00:39]The average American pays over 14%.

[00:00:43]This is not cheating. This is the tax code doing exactly what it was designed to do. Just not for the people who paid for it to be written.