Media Darling Warren Buffett Barks Up Estate Tax Tree

Photo of Jeff Poor.

The billionaire-turned-populist beloved by the media is in Washington telling Congress to keep taxes high.

Warren Buffett, ranked as the 21st most influential liberal in the United States by the Telegraph (U.K.), appeared before the Senate Finance Committee November 14 to make his case against the repeal of the estate tax. And he used a very abnormal circumstance as his evidence.

Leona Helmsley, a billionaire hotel and real estate mogul known as the "Queen of Mean," died in August. It was discovered after her death that she named her dog, Trouble, in her will.

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"Leona Helmsley's dog, Trouble, reportedly is inheriting $12 million," Buffett said. "If Mrs. Helmsley's estate is within the 45-percent bracket, Trouble could instead receive $22 million if the estate tax was removed."

The "Oracle of Omaha" also demonstrated wealth hasn't affected his propensity to perform mathematics.

"Alternatively, just from Trouble's share of the Helmsley's estate tax, 10,000 families making less than $20,000 annually could receive $1,000 each to make their lives a bit better," Buffet added.

However, there was a case of mistaken sex when it came to Helmsley's doggy heir. Trouble, a female white Maltese, was referred to by Buffett as "he" throughout the testimony.

"Even though Trouble probably heard Leona say, quote, ‘Only the little people pay taxes,' end quote, I don't think he would mind the estate paying $10 million for him to get his $12 million," Buffett said.

But, why does Buffett think this is important?

"We need to raise about 20 percent of the GDP to fund the programs the American people want from the national government," Buffett said. "Further shifting of this requirement away from the super-rich is not the way to go."

The media have had a love affair with Buffett, often citing his desire for the rich to pay higher taxes.


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I know plenty of dogs

Who deserve millions of dollars more than the IRS does. In fact, that applies to just about every dog I know (just not the mean ones!). The freedom to leave money to a pet or some silly cause is one of the reasons people are motivated to get rich enough to build and run snazzy hotels. People need to get used to it.
JMR

Rally online with fans of Dr. Ron Paul.

Buffoon

Buffett may have been a savvy investor. When he talks about public policy he sounds like a buffoon.  Part of his investment strategy was to buy family owned companies hit be estate taxes. So perhaps he is a bit self serving.

In any case, there is no law that says Buffett has to avail himself of income tax deductions. I suggest that he take the no deduction pledge so he can feel good about himself.

Exactly. You don't have to

Exactly. You don't have to agree with how someone chooses to use their wealth (and believe me, there are many who I don't agree with, Soros for instance) but you should respect their right to use their money as they choose. Whether that is to leave it to an orphans fund or their pet goldfish named Sushi is up to them. And Warren Buffet himself loaded with cash should know better. Would he like it people suddenly took away his right to use his money as he chooses?

 

 

"We need to raise about 20

"We need to raise about 20 percent of the GDP to fund the programs the American people want from the national government," Buffett said.

They want? What in the world does a "want" have to do with what the Federal Governments' responsibility is??? I WANT a new Cadillac. So what? Is someone supposed to pay for it because I want it?

A need or a want is not a claim to another's labor or possesions (paraphrased from "Atlas Shrugged")

where do we send our wish

where do we send our wish lists?  Perhaps Warren can send you that Cadillac.

"Alternatively, just from

"Alternatively, just from Trouble's share of the Helmsley's estate tax, 10,000 families making less than $20,000 annually could receive $1,000 each to make their lives a bit better," Buffet added.

The point being Mr. Buffet, that individuals not the government gets to decide how they wish to spend their money or bequeath their estate.  This is nothing less than self promotion you're advocating, not populism. It's easy to tell other people what to do with their money when it has no impact on you.  In fact, I would go so far as to challenge you to re-write your Will so when you die, to equally divide your wealth among those whom you deem worthy of your beneficence. 

Leona gifting her estate to her dog is irrelevant to the issue.  But it is sure convenient to your self promotion.  Anyone looks good compared to a public villan.

Hanlon's Razor: Never attribute to malice that which can be adequately explained by stupidity. dscott's corollary: The line between malice and stupidity is called depraved indifference.

 don't think he would mind

 don't think he would mind the estate paying $10 million for him to get his $12 million," Buffett said

Perhaps we should ask the dog and not just let Mr. Buffett speak for everyone.  I would certainly mind.  There does my opinion cancel out Warrens' opinion?  Mr. Buffett is certainly free to send an extra check to the government if that is where he feels it would be best used, but to assume that everyone agrees is nonsense.  Economics is driven by incentives and if I am going to be penalized for working hard and being successful, why should I even try?  The estate tax could be one of the most un-American principles I have ever heard of.

 

What's your point, Warren?

"Leona Helmsley's dog, Trouble, reportedly is inheriting $12 million," Buffett said. "If Mrs. Helmsley's estate is within the 45-percent bracket, Trouble could instead receive $22 million if the estate tax was removed."

And if Helmsley's estate was in a 75% tax bracket, the dog would get $6 million -- if it were in a 90% tax bracket, the dog would get $2 million. While I think it's ridiculous to leave ANY money to a dog, what would be "fair" for the dog -- and why should the government get to be the one who decides what is fair?

The death tax doesn't hurt people like you, Warren, who can drop a million here or there and not worry about it -- but it absolutely destroys small family businesses, who have a net worth high enough to get hit by outrageous taxes (on wealth that, in many cases, was previously taxed). Often small family businesses have to sell out to big corporations (like ones you own, Warren?) to pay the IRS bill, since few companies have half their value in liquid assets.

He has played the tax game like a Stradivarius

He has played the tax game like a Stradivarius, but why shouldn't he? This example points out the need for something like a flat tax which would be equitable. If you purchase something(except food) you pay tax; if you don't, you don't.

 This plan would have served Mr. Buffett in this way: He would have had fewer taxes to pay because the failed and distressed businesses that he purchased( at fire sale prices) could have remained with the original owners. At least some of the sources of his great wealth would not have been available to him. Estate taxes are great for the few and a disaster for most of us.

Ok, that settles it

I am marrying a dog.

All i hear about is that Homosexuals NEED marriage so that they can leave each other in their wills and along comes this lady and casually leaves all her money to the dog and it's no problem.

I am fighting mad 

(sarcasm off)

Typical liberal - every so

Typical liberal - every so magnamimus with OTHER PEOPLE'S MONEY! 

Hey, Buffet, how about YOU write a check to the U.S. Tresuary for the balance of your wealth. Tick, tock, tick, tock . . .

What do you want to bet that this piker ends up not paying one red cent in death taxes. 

Meanwhile, it is wage earners that pay taxes not billionaires. In federal taxes alone, the top 1% of the wage earners pay 37% of all federal taxes!  While the bottom wage earners, that Buffet was talking about all of us helping are already being helped to the tune of thousands of dollars each year.  It is called the Earned Income Tax Crediti, Buffet! 

Buffett's BUSINESS is tax avoidance

Buffett wants taxes high because Buffett owns insurance companies that sell products designed to protect you from paying taxes. He also buys small businesses at fire-sale prices when estate tax liability forces a sale.

He's creating demand for his product, and Congress isn't sharp enough to see it.

Reality Check

Good point.

My buddy is in the insurance business. I used to tell him I could not understand how he slept at night. (He insures against construction-worker stupidity, a business I'd never dare to consider entering).

Then he showed me the numbers (stupidity apparently ISN'T random, it's instead a constant. Who knew??) and THEN he showed me just-how-deferred insurance companies' income-taxes really are. Now I know why he sleeps like a baby, and why insurance-company buildings tend to dwarf banks...
JMR

Rally online with fans of Dr. Ron Paul.

estate tax

Isn't Buffet the guy who made headlines  for donating his forture to the(tax Exempt) Gates Foundation?

Yes He Did!!!

And he's also the guy, that could have "donated" some of that fortune to the federal government, above and beyond any stipulations in the estate tax regulations.  But did he?  No!!  And that's the clincher.  People like Buffet and Gates, Sr. have no problem showing their incredulity at removing estate taxes, yet neither of them have ever written an extra check to the state, or the federal governements because it made them feel better.  As a matter of fact, I'd bet a small sum that they both pay a boat load of cash to tax lawyers who minimize their tax liabilities.  What a bunch of two faced hypocrites.

Buffet too dumb...

to know how he got so rich. Either that, or he now feels "guilty" and is biting the hand that fed him.

Ok, Warren Buffet is

Ok, Warren Buffet is definitely on my $h1t-list now!  First, I think Leona Helmsley as well as ANYBODY else should be able to do with their money as they please.  Warren Buffet HIMSELF gives enormous amounts of money to Africa and then writes off those gifts on his taxes.  We all know how wasteful "that" is, considering Africa has never gotten any better.