The Buffett loophole, in which Warren Buffett skirts paying billions in income taxes annually. When Costco, almost immediately upon supporting higher taxes on the wealthy, paid one of the largest special dividends in history to avoid paying higher taxes. Show me a single person in this country who pays more Federal income taxes than they are legally required to do so. Individuals regularly and often contribute large sums to local government, yet everyone goes to great lengths to avoid supporting the Federal government.