Warren Buffett’s Big Lie About Taxes
Buffett and his holding company also owe the IRS more than $60 billion in “deferred” taxes making him the BIGGEST tax avoider in the world. Why do both Clinton and Obama support him?
Today Warren Buffett claimed he didn’t make use of tax loopholes on his personal taxes — what he didn’t tell you was that he only pays himself $100,000 a year and doesn’t distribute dividends to himself personally.
Democrats are attacking Donald Trump for “avoiding taxes” while one of their biggest donors and champions is reportedly being accused of BOTH tax avoidance and evasion (note, avoidance is legal and evasion is illegal).
Warren Buffett is one of the wealthiest men in the world. He famously complained that the government didn’t tax him enough, falsely claiming that his secretary paid a higher tax rate than he did. Despite these facts, Warren Buffett actively practices “tax avoidance” on his personal returns and corporate returns and according to reports, “tax evasion” to the tune of a billion dollars in his holding company.
According to Barron’s the billionaire significantly reduces his “taxable income” by shielding it in a holding company — allowing him to avoid paying taxes on more than $71 billion dollars of wealth accumulated over the years. His taxable income is only $40M — .05% of his net worth — a far lower tax rate than even Donald Trump with his, now famous, NOL. On average Buffett pays around $7M in taxes each year — but if his holding company operated as a normal S&P company he would have to pay almost $300M in taxes each year. Quite a MAJOR personal tax avoidance scheme — but that is chump change compared the avoidance scheme his holding company is running.
Berkshire Hathaway, the billionaire’s holding company, agreed the company owed almost $7.9 billion in taxes the year before last, but used a loophole in the tax code that allows them to “defer” paying what they owed. More shocking is the fact that Berkshire has deferred MUCH of its taxes over the past decade — almost $61 billion — money the company acknowledge it owes to the government but hasn’t paid.
Finally, despite complaining that the federal government doesn’t charge him enough in taxes when the IRS told him that he underpaid his taxes by $1 billion instead of happily writing the check he took the IRS to court. The legal battle is still underway and it is not clear who will prevail. Hillary needs to explain why she’s comfortable allowing her donors and supporters to leverage the tax code to their advantage and when it doesn’t work to their advantage take the IRS to court. It is the height of hypocrisy to attack Trump for something your supporters are doing everyday.