As noted in this blurb: The Command Post - 2004 US Presidential Election - Huffington Receives Flack Over Taxes, CA gubenatorial candidate Arianna Huffington paid just over $700 in income tax last year. That is comparable to what I paid. Huffington, however, lives in a $7 million house. I couldn't afford a place with grounded electrical outlets last year. Of course, "she apparently did nothing illegal." Kudos to her for taking advantage of tax loopholes for rich people. Lesson learned: if you have enough money to lose some, then you can mostly avoid taxes by writing off your "business losses." If you're on your way up from somewhere near the bottom, then there's no easy way out. Perhaps this tax scheme contributes to two stereotypical responses. First, there's the "liberal guilt" reaction in which Huffington realizes that doesn't "shoulder a fair share of taxes." Her way of "giving back" to the community is to run for governor. And possibly to buy a sandwich for some homeless internet CEO. The second reaction is a natural one that I can identify with: "I paid more than my fair share on the way up and I'll be damned if I'm gonna keep paying through the nose now that I have some money." I think it is clear that some systemic tax reforms are in order.