Buffett's hypocrisy

[RickN]

Some of you remember the glee from the left when Warren Buffett said they should raise his income taxes because he pays a lower rate then his secretary. You also know Buffett pays mostly capital gains taxes while his secretary pays regular income tax.

Well it turns out Buffett's company has been fighting for years to LOWER their tax rate.

With few exceptions, we have settled tax return liabilities with U.S. federal, state, local and foreign tax authorities for years before 2002. We anticipate that we will resolve all adjustments proposed by the U.S. Internal Revenue Service (“IRS”) for the 2002 through 2004 tax years at the IRS Appeals Division within the next 12 months. The IRS has completed its examination of our consolidated U.S. federal income tax returns for the 2005 and 2006 tax years and the proposed adjustments are currently being reviewed by the IRS Appeals Division process. The IRS is currently auditing our consolidated U.S. federal income tax returns for the 2007 through 2009 tax years. It is reasonably possible that certain of our income tax examinations will be settled within the next twelve months.

So Buffett’s company is still battling with the IRS to minimize its taxes as far back as 2002. The amounts in dispute are substantial:

At December 31, 2010 and 2009, net unrecognized tax benefits were $1,005 million and $926 million, respectively. Included in the balance at December 31, 2010, are $774 million of tax positions that, if recognized, would impact the effective tax rate. The remaining balance in net unrecognized tax benefits principally relates to tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.

http://www.berkshirehathaway.com/2010ar/2010ar.pdf

 

[Dale00]

Good find! Too bad such facts don't count for much in today's info-tainment media. Buffett's homespun humility and business acumen have made him a popular media figure and this probably changes none of that.

 

[HMFIC]

He's just a poor country boy from Nebraska though... Rick you're just mean for picking on him.

 

[redmax51]

Good find! Too bad such facts don't count for much in today's info-tainment media. Buffett's homespun humility and business acumen have made him a popular media figure and this probably changes none of that.

It was all over Fox News when he first came out for the higher tax rate.He's just another billionaire liberal weasel.

 

[_CY_]

not really .. yet another gross distortion.

Buffett may run the company, but he owns shares like other shareholder. Besides a major chunk of Buffetts Berkshire stocks has already given away to charity. It's my impression, Buffett was referring to his personal taxes. http://www.nytimes.com/2011/08/15/opinion/stop-coddling-the-super-rich.html

what Buffet does have is a fiduciary duty to gain the max profit to Berkshire. Like other corporate giants this includes employing teams of accountants who's job is to pay the least amount of taxes. In more than a LOT of instances this would include taking advantage of HUGE tax credits.

the super rich doesn't need help from you and me.
which leads to the need to definite rich and super rich. http://www.amazon.com/Rich-Super-Rich-Study-Power-Money/dp/0818400692

a MAJOR portion of tax credits/loopholes or what ever you'd wish to call it are going to the super rich. NOT the rich, which are the drivers for jobs, etc.

the super rich are not going to create jobs with any tax savings. they will simply tuck it away. it's the rich that does invest back and create jobs.

for instance, the lion's share of tax subsidies for ethanol production is going to ADM. One of the largest agricultural giants on the face of the earth.

this is part of the so call tax increases/loop holes demo were trying to take away until it got killed by republicans. Oil companies are making HUGE $$$$ profits, yet they receive Billions $$$ in tax incentives. these were part of so call tax loopholes demo were trying to take away, but killed by repub.

the rich doesn't need to be straddled by more taxes for they are the driver of jobs. but sorry the super rich is in another class and doesn't need to be coddled. those are the folks Buffet is referring to.

the over 50% of population that pays zero income taxes should be paying their share too. value added (VAT) or consumption tax is the only way the tax burden should be shared by all.

sorry but the facts support it's not possible to balance the budget by cuts alone. it also requires raising more $$$, which has to come from somewhere.

Some of you remember the glee from the left when Warren Buffett said they should raise his income taxes because he pays a lower rate then his secretary. You also know Buffett pays mostly capital gains taxes while his secretary pays regular income tax.

Well it turns out Buffett's company has been fighting for years to LOWER their tax rate.



So Buffett’s company is still battling with the IRS to minimize its taxes as far back as 2002. The amounts in dispute are substantial:



http://www.berkshirehathaway.com/2010ar/2010ar.pdf

 

[tntrex]

over 50% of population that pays zero income taxes should be paying their share too. value added (VAT) or consumption tax is the only way the tax burden should be shared by all.

If he wants it fair, lets do this.

 

[HMFIC]

If he wants it fair, lets do this.

+1 problem is, they don't really want it fair.

 

[mr ed]

if Warren Buffet thinks he should pay his personal share, all he has to do is take no deductions on his 1040 form.
the government does not hold a gun to your head and force you to take these deductions.
he's just another greedy rich guy who takes every deduction possible and then blames somebody else.

 

[RickN]

Another interesting note on those tax breaks for oil companies, they are the very same tax loopholes available to every company that mines, gets part of their profits from overseas, etc. They are getting NO special tax breaks.

Also balancing the budget could very easily be done with nothing but spending cuts if the jerks in DC would cut out the waste, duplication, fraud, etc.

 

[redmax51]

"the rich doesn't need to be straddled by more taxes for they are the driver of jobs. but sorry the super rich is in another class and doesn't need to be coddled. those are the folks Buffet is referring to."



Maybe but,and this is important,these are NOT the people obama and the dumacrats are talking about.



"the over 50% of population that pays zero income taxes should be paying their share too. value added (VAT) or consumption tax is the only way the tax burden should be shared by all."


I support a flat tax.





"sorry but the facts support it's not possible to balance the budget by cuts alone. it also requires raising more $$$, which has to come from somewhere."



Many disagree with this statement.For every economist you can trot out in support of this there is an economist who says all we need is cuts in spending,waste and duplication.No matter how you cut it though ,it's a massive problem that will take a really long time to fix.


Oh,and Mr. Buffet,if you really believe in this,you and Mr. Gates can step up to the plate and start writing checks.