Warren Buffett's new tax story

[Brainfade]

A few months ago, Buffett earned praise for his plea to the rich to shell out more in taxes. He expressed outrage over how his secretary paid a higher tax rate than he did. Pres Obama announced the "Buffett rule" based on this plea. Everyone, including ICF posters, were singing the man's praises. Now it comes out that his company owes taxes from 2002 onwards. Yaar, first pay what is due now before talking about your desire to pay more.

Warren Buffett, hypocrite Last Updated: 11:51 PM, August 28, 2011 This oneÃÔ truly, uh ... rich: Billionaire Warren Buffett says folks like him should have to pay more taxes -- but it turns out his firm, Berkshire Hathaway, hasnÃÕ paid what itÃÔ already owed for years. ThatÃÔ right: As Americans for Limited Government President Bill Wilson notes, the company openly admits that it owes back taxes since as long ago as 2002. Ÿe anticipate that we will resolve all adjustments proposed by the US Internal Revenue Service (ŪRS? for the 2002 through 2004 tax years ... within the next 12 months, the firmÃÔ annual report says. It also cites outstanding tax issues for 2005 through 2009. Obvious question: If Buffett really thinks he and his ÅÎega-rich friends should pay higher taxes, why doesnÃÕ his firm fork over what it already owes under current rates? Likely answer: He cares more about shilling for President Obama -- whoÃÔ practically made socking ÅÎillionaires and billionaires his re-election theme song -- than about kicking in more himself. BuffettÃÔ free to back Obama, of course. And if his firm wants to keep its tax bill low, well, thatÃÔ its right, too. But it would be nice if this ÅÑro-tax-hike tycoon were a bit more honest about it. Start, for example, with his grossly disingenuous recent claim that, as he wrote in The New York Times, he paid only 17 percent of his income last year to the government -- even as many working stiffs who make far less than him coughed up higher percentages. Fact is, unlike most other folks, Warren Buffett gets most of his income from dividends and capital gains, which are nominally taxed at 15 percent. Left unsaid is that much of that is taxed at 35 percent (via the corporate income tax) before he even gets his hands on it. So in effect, heÃÔ paying taxes twice (that is, when his companies actually pay, anyway). Counting both taxes, his effective rate would really be well north of 40 percent for a big chunk of his income. ThereÃÔ more. Obama, and co-conspirators like Buffett, claim to want to slap only ÅÎillionaires and billionaires. But in 2009, for instance, fewer than a quarter-million taxpayers (less than two tenths of 1 percent) reported income over $1 million -- and their combined bill was less than $200 billion. Raise the top tax rate on them by 13 percent, as Obama wants (from 35 percent to 39.6 percent) and you bring in only another $26 billion, tops -- and thatÃÔ if your tax hike doesnÃÕ stifle the economy and kill jobs (which it surely would). Yet whatÃÔ $26 billion in a world of $4 trillion federal budgets with trillion-dollar-plus deficits? No wonder ObamaÃÔ hikes on ÅÎillionaires and billionaires actually start with folks earning as little as $200,000. Looks like BuffettÃÔ not the only disingenuous one here. But again, thatÃÔ clear from their individual behavior: Obama, Buffett and Democrats like Bill Clinton keep saying they want to pay more taxes. Fine. They can always write checks.

http://articles.businessinsider.com/2011-08-29/wall_street/29978064_1_tax-rate-berkshire-hathaway-irs

[Crookbond]

You would think that the Post would find an author that actually knows something about finance. Berkshire Hathaway does not pay dividends and any income that an investor gets from capital gains certainly does not originate from the profits of a company. So much for that whole double taxation "grossly disingenuous" statement that the author bases his article on. Also, the IRS and Berkshire have been down this road before. Guess who won? That's right, Berkshire. So before you make any claim that he isn't paying what is owed, maybe you should wait until the whole thing plays out. I put my money on Buffett. http://www.tax-news.com/news/Berkshire_Hathaway_Victorious_In_Tax_Dispute_With_IRS____21618.html

[punjabi_khota]

26 billion is a shyte load of money, it is double standard to claim that is nothing while harping on salaries and shyte for school teachers.

[yoda]

Yea we need fewer Warren Buffetrs and more Rush Limbaughs to make this world a better place. :hahaha: Regarding the OP, he owes it to his own shareholders to make sure that his company pays the right amount of taxes and not more. And he is not asking people to voluntarily pay more, that is what the right has suggested he do. All he is asking for is to raise the rates for the filthy rich so they can be legally obligated to pay more. And if like his company if those individuals have special situations like Berkshire has with dividends, they are entitled to fight it like his company is doing now.