Comments on: Warren Buffett and the Estate Tax

By: Sales Use Tax » Links – Nov 13

Sales Use Tax » Links – Nov 13 — Mon, 31 Jan 2011 04:14:08 +0000

[...] Warren Buffett and the Estate Tax Nov 11 (Oxford University blog) – Professor Zelinsky suggests that Buffett, a prominent and outspoken proponent of the federal estate tax, who has criticised the fact that he pays a lower tax rate than his secretary, could and should contribute his fortune on a taxable basis. [...]

By: Warren Buffett and Bill Gates on the estate tax | New York Trusts & Estates Law Blog

Mon, 01 Jun 2009 23:50:17 +0000

[...] to a blog post by Edward Zelinsky, a law professor at Cardozo, Warren Buffett has made the same argument in the past: Among his [...]

By: Wendy

Wendy — Sat, 15 Nov 2008 18:29:43 +0000

I respect and support Mr. Buffett as a philanthropist, however if Mr. Buffett is so inclined to pay more in taxes or distribute the wealth, why doesn’t he start with taking a normal salary like every CEO does instead of hiding his true tax bracket under capital gains at only 15%? The vast majority of Americans making payroll income do pay taxes according to what they make. We work to take care of our children and grandchildren as the Bible promotes, it is our obligation to do so. Mr. Buffett shouldn’t generalize about taxation in any aspect of the tax code for the entire country when he is the only CEO collecting his fortune while avoiding social security & Medicare taxes, avoiding payroll income taxes as well as matching the 7.65% tax from his employees paying into FICA; this in addition to avoiding estate taxes by donating to charities – however very generous. He takes the money that he makes under capital gains/losses (on investments) and taxed at only 15%. Be clear, Mr. Buffett’s payroll or income tax is based on the value of his stock (Berkshire Hathaway), so his ‘salary’ therefore is only $100,000 to $200,000 per year. His personal reasons for doing so are commendable; however he should not make statements or promote for the rest of Americans to pay more in taxes in whatever area of the tax code, when he himself avoid taxes or uses the system to avoid them because of his personal decisions.

By: George Cisneros

George Cisneros — Fri, 14 Nov 2008 05:21:23 +0000

Remember who he is and what he does to make money, and there is your answer.
The genius of Buffett is to come across as an average Joe, the guy next door.
The majority of his holdings are small closely held businesses that are well run. The problem for most of these type businesses is that either by improperly planned retirement, sudden disability or death – the family has an income and/ or estate tax bills, but are well shy of it with liquidity.
Buffett swoops in like superman. He provides a service, but he comes out way ahead.
If the estate tax was taken away, he would have to pay a much fairer price as the business is not between a rock and and a genius providing the hard place.

By: steve

steve — Fri, 14 Nov 2008 03:23:55 +0000

mr parker is right buffet left the bulk of his estate tax free to his childrens’ charity. I should either start my own charity for my kids or make my own church.

By: Paul Parker

Paul Parker — Thu, 13 Nov 2008 17:25:47 +0000

The kids – and presumably further lineals – haven’t exactly been “left by the roadside”:

He (Buffett) also announced plans to contribute additional Berkshire stock valued at approximately $6.7 billion to the Susan Thompson Buffett Foundation and to other foundations headed by his three children. The bulk of the estate of his wife, valued at $2.6 billion, went to that foundation when she died in 2004.

By: Patti Spencer

Patti Spencer — Thu, 13 Nov 2008 10:03:37 +0000

This writer has missed the boat. Buffet has lobbied against the accumuation of wealth in individual hands – has never said anything against the transfer tax policy alowing the charitble estate and gift tax deduction. And further – it takes no particular skill to get the charitable deduction for your client – just give it to the charity.

By: John Thacker

John Thacker — Thu, 13 Nov 2008 00:13:06 +0000

This article misses the whole point of why Buffett supports the estate tax. It is not simply to get revenue for the federal Treasury. It is to prevent a permanent aristocracy from forming based on inherited wealth.

The fact that Mr. Buffett’s company, Berkshire Hathaway, has insurance as its core business, and that life insurance (together with transferring the policy) is a primary way to avoid estate tax doesn’t mean anything? Repealing the estate tax would be bad for his company by making people less likely to buy life insurance.

By: Sean Hosty

Sean Hosty — Wed, 12 Nov 2008 17:24:34 +0000

Another reason the article misses the point is that Buffett’s fortune can accomplish much more public good than giving his money to the bloated inefficient, Federal Government. Nor, do I think Buffett wants his billions funding the Iraq war?

By: Roman Mitz

Roman Mitz — Tue, 11 Nov 2008 17:30:33 +0000

In addition, the taxes on his Berkshire investment, were it not tax-free, would be taxed at the long-term capital gains rate–which is far lower than the rates discussed which include the payroll tax et al.