Buffett's Latest Tax Break [ Buffet has never even paid the Bush Rates! ]

Wall Street Journal ^ | Aug 29 2011 | WSJ

[NoLibZone]

For a guy who spends a lot of time advocating for higher taxes, Warren Buffett does a remarkably good job of minimizing his own corporate tax bill. This is all to the good for Mr. Buffett and his fellow Berkshire Hathaway shareholders, who no doubt can invest the money more wisely than the federal government is likely to do.

Mr. Buffett's recent decision to invest in Bank of America represents another tax-avoidance triumph for the Berkshire chief executive. U.S. corporations are subject to a top federal income tax rate of 35%, the second highest in the world. But the Journal's Erik Holm notes that Mr. Buffett and the Berkshire bunch won't pay anything close to that on their investment in BofA preferred shares.

That's because corporations can exclude from taxation 70% of the dividends they receive from an investment in another corporation. This exclusion is intended to prevent double- or even triple-taxation as money is earned by one company, paid to another company and then ultimately paid out to shareholders. The policy makes sense; we only wonder why the exclusion isn't 100%.

[libertarian27]

http://www.fms.treas.gov/faq/moretopics_gifts.html

Gifts to the United States Government

How do I make a contribution to the U.S. government?

Citizens who wish to make a general donation to the U.S. government may send contributions to a specific account called “Gifts to the United States.” This account was established in 1843 to accept gifts, such as bequests, from individuals wishing to express their patriotism to the United States. Money deposited into this account is for general use by the federal government and can be available for budget needs. These contributions are considered an unconditional gift to the government. Financial gifts can be made by check or money order payable to the United States Treasury and mailed to the address below.

Gifts to the United States
U.S. Department of the Treasury
Credit Accounting Branch
3700 East-West Highway, Room 622D
Hyattsville, MD 20782

Any tax-related questions regarding these contributions should be directed to the Internal Revenue Service at (800) 829-1040.

[AD from SpringBay]

This needs to be bumped to the top every day for the next six months.

[Blood of Tyrants]

Buffet is a typical rich liberal elite. Always advocating higher taxes -— for other people.

[Razz Barry]

We're tempted to suggest that Mr. Buffett should do what he might call the patriotic thing and volunteer Berkshire to pay the full 35% rate as a good corporate citizen. But even if Mr. Buffett won't say it, most Americans know that more jobs will be created if the money is deployed by the Berkshire bunch than by the Beltway boys.

I suggest instead of giving more money to a wasteful government, Mr. Buffett should stop laying off employees at his North Georgia carpet mills. Shaw Industries, owned by Berkshire, has laid off hundreds of employees. If Buffett has money to waste, he should put those employees back to work. They'd be less likely to waste the money. It would help the government by taking those people off unemployment. Sure, he'd have carpet that would not sell. He could give it to people who are rebuilding their homes.

[49parallel]

Gads, just a bunch of idiots in the media.

Here’s what Buffett is talking about...

http://www.charlierose.com/view/interview/11845

Oh, and the WSJ writer screwed up on the 10.5% tax rate he’d used. Buffett has issued a news release to correct them.