Warren Buffett doubles down on tax return challenge

Billionaire investor Warren Buffett divulged to a Republican congressman yesterday that he made more than $62 million in 2010 and that just 17.4 percent of his taxable income was taxed.

However, Buffett refused to meet the request of Rep. Tim Huelskamp, R-Ka., and publicly release his tax return. In a letter sent to Huelskamp Tuesday, Buffett said he's still holding out for other members of the "ultra rich" -- like Rupert Murdoch -- to release their returns along with him.

Some congressional Republicans, including Huelskamp, asked Buffett to release his tax returns since he is the inspiration for President Obama's so-called "Buffett rule," which would ensure that taxpayers who make over $1 million a year are taxed at the same overall rates as middle class Americans. Buffett inspired the rule after remarking that he pays a higher tax rate than his secretary.

Huelskamp wrote in an open letter to Buffett that if a rule that "shape[s] an entire nation's tax policy" is going to be named after Buffett, the billionaire should be willing to provide "evidence to justify such a change in policy."

In his response to Huelskamp, Buffett said his adjusted gross income last year was $62,855,038, and his taxable income came to $39,814,784. He explained to CNN that the roughly $23 million difference between his adjusted gross income and taxable income was due largely to deductions he took for charitable giving and local taxes.

Buffett said he paid $15,300 in payroll taxes and that his federal income tax bill came to $6,923,494, or 17.4 percent of his taxable income. He paid a lower tax rate, he told CNN, in part because a large part of his income came from investments, which are taxed at a lower rate than wages.

In his letter last week to Buffett, Huelskamp said he'd release his tax returns if Buffett released his returns. Buffett responded that Huelskamp -- and most other congressmen -- probably pay the normal rate of around 30 percent, so Huelskamp's offer would be pointless.

"What would be useful would be to get more of the ultra rich to publish their returns," Buffett wrote. "If you could get other ultra rich Americans to publish their returns along with mine, that would be very useful to the tax dialogue and intelligent reform. I stand ready and willing -- indeed eager -- to participate in this exercise."

To dispel any doubts about the accuracy of his claims, Buffett wrote to Huelskamp that he'd be willing to bet on it.

"If you can get any of the ultra rich to relase their returns simultaneously with mine, I will be willing to have a pre-release wager with anyone who wishes for any sum that they wish that the figures in my return will be exactly" what he stated, Buffett wrote.

In a response today to Buffett's letter, Huelskamp said in a statement he was "disappointed" Buffett still hasn't released his tax returns, even after the congressman offered to release his. "I guess Mr. Buffett still fears public disclosure - and my offer still stands," he said.