Skip to comments.Buffets advice to not pay taxes: "a holding period of forever incurs a capital gains tax of 0%"
Posted on 08/15/2011 12:04:49 PM PDT by NoLibZone
Mr. Buffets oft stated plan to avoid any tax rate:
"Our favorite holding period is forever You only pay income taxes at any rate on realized appreciation.
An investment with a holding period of forever incurs a capital gains tax of 0%, while all along the holder can be getting wealthy from appreciation. "
The wealthy don’t live paycheck to pay check.
The dems use projected tax revenue to increase spending on vote buys.
Right. Now they tell me. Well, doesn’t matter anyway, I’m going out the same way I came in. Naked and broke. Buffet can stay here forever with all his gold.
On further thought, I guess you could borrow against the appreciated asset and gain economic benefit that way. Let's ask mortgage lenders how well THAT has worked out.
Buffet is a hypocritical buffoon. He should just shut up and give ninety percent of his money to the U. S. Treasury, and pronto. He’s one of the worst Obama lickspittles. Colin Powell is another. They’re disgusting. Both should have known better.
Not exactly, Warren. While you can hold the assets for your lifetime, when you die, the federal government will...if your friends Obama, Pelosi, and Reid have their ways...surrender 55% or more of your assets (not just the capital gains) to the federal government and probably a high percentage to the state of Nebraska.
The mob he fears will still hang him first.
He could use his economic assets as collateral and borrow somwhere else at a low rate. The investor class should boycott this traitor.
Note to Mr. Buffett: In most cases, the paper gain you incur during the course of "getting wealthy from appreciation" isn't even worth the paper it's printed on. You can ask anyone who purchased dot-com stocks in the late 1990s or real estate in 2006-2008 -- and held onto their assets "forever" -- all about that.
The wealthy do not need to sell their shares but the poor middle class is counting on future sales to provide retirement funds.
Its not that simple for the extra wealthy. Having significant shares of a company can provide you control over the actions a company makes. This can give the shareholder access to funds to pay personal expenses indirectly.
No, his position is more prosaic. He owns a lot of insurance companies and through them has placed a lot of bets that will cost him dearly if the economy tanks further. His aim is to have taxpayers shore up the economy to save his a$$.
Not exactly. When I die, my fortune will go the the Foundations of my rich friends, mostly to the Bill and Melinda Gates Foundation ..... TAX FREE!
Warren Buffett gives away his fortune: The world's second richest man - who's now worth $44 billion - will start giving away 85% of his wealth in July - most of it to the Bill & Melinda Gates Foundation
That leaves YOU to pay for the Federal Government!
You only pay income taxes at any rate on realized appreciation.
Here is how the foundation thingie works in practice. Buffet starts transferring shares to Gates Foundation. Buffet doesn’t care about the value anymore, he doesn’t need it. But he does care about the control and power that his shares provides. So, as he transfers shares the vote for those shares goes to Gates Foundation but guess how the Gates Foundation will vote ? Right, Buffet will have an effective proxy because the Gates Foundation will not want to cause Buffet to redirect his shares to another charity.
I posted as a vanity.
Info on his quote is here:
The Real Reason Warren Buffett’s Taxes Are Low
His insurance companies hold all his wealth. They don’t pay capital gains tax.
One of the reasons WHY Obama and the Democrats are losing favor right now with the American people is b/c people are beginning to realize that any taxation scheme they put into place will completely protect the zillionaires who fund the Democratic Party. Buffet is not really proposing punitively high taxes for rich zillionaires like himself. He is proposing punitive taxes for those immediately below himself who are trying to BECOME rich. Big difference.
It is as if two people are walking down the street and a beggar approaches them. Both are well off and comfortable but one is a multi-millionaire and the other is simply a properous person with a net income well below one million. The multi-millionaire gives the guy a 100 dollar bill, uses his cell phone to call the press to come by and take his picture as he is engaging in this charitable act, and at the same time piously recommends to his friend that he do likewise. However, the friend immediately recognizes the hypocrisy of this b/c a 100 dollar bill for him will represent a far larger donation - as a proportion of his total - than it will for the multi-millionaire. Not only that but he also insisted upon making it into a self-serving media event
No Warren, lower everyone else’s income tax rate to a maximum of 15%.
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