Buffett wants a tax increase, not an aristocracy

Like most rich Buffett has lawyers who have so protected his wealth that there will be little Death Tax. It is the middle class that get killed.He needs to meet that part of America.

Mr.Buffett has lawyers that has set up trusts and such that will make his death tax very small. It is the middle class that pays most of the death taxes.His logic is same as the idea that government job is to redistribute wealth.Is that in the Constitution?

Lamar,

I do not understand your comment or what you think middle class is. The average family in America has a net worth, not counting their home of about $50,000.

If you had a net worth of the compromise number of $3.5 billion you would have made the Forbes 400 - they don't need a break!

If you had an estate of $1 million you would cover the net worth of 90% of the population and if it was $5 million it would be close to 95%.

The governments job is not to redistribute wealth, it is to assure a level playing field - admittedly it does not do that consistently - but WE ALL are the government - and we try.

Isn't it 3.5 million? But if it is 3.5 billion, I'm ticked because our Missouri farm is worth 3.6 billion.

If there is a 3.5 million exclusion, and you have a 3.6 million estate, you pay 45% of 100,000, or $45,000, which is 1.25% of your fortune.

Holy cow, the middle class is getting killed. Lol.

Who's Buffet kidding! He has huge holdings in insurance companies which market life insurance.There is an immense amount of life insurance policies in force to cover the incidence of estate taxes upon death. Of course he wants the inheritence taxes in place,if they were repealed his investments would head South!
Remember the rule"when in doubt follow the money!"

John,

This is from the NY Times story I linked too:

"Lawmakers and interest groups on both sides of the debate see several potential compromises, perhaps by freezing the exemption rate at $3.5 billion and capping the tax rate at 35 percent."

Lamar you need to check your facts... congress plans to raise the exemption to 3.5 Million not billion.

Also, Warren Buffet makes A LOT of money off of the Estate Tax via his insurance companies and all of the companies that he has been able to purchase because the death tax forced the owners to sell. The list of his businesses is long and includes the following: Dairy Queen, Jordan’s. Justin Industries, Star Furniture, Borsheim, Ben Bridge Jewlers, U.S. Liability, NetJets, R.C. Wiley, Flight Safety, and Nebraska Furniture Mart.

The reality is the super wealthy are getting richer because of the death tax!!!!!!!!!!!!!!!!

Well Sheldon, that is one whopper of an exclusion! When did the Burger King get elected to congress?

Asking Warren Buffet about other people's estate taxes is like asking the barber if you need a haircut.
Remember that life insurance is the "loophole" that feeds his most lucrative business.
Warren has already figured out how he can take his money with him when he dies: He has instructed Mr. Gates how to continue to grow his power, influence and fortune - tax-free - for many, many years after he is gone, and without giving a dime to the government in the way of estate taxes.

So few Americans are subject to the death tax after estate planning that it is impossible that a significant portion of Buffett's reinsurance business derives from sales of policies to cover that liability.

" A six-year lawsuit by franchisees over having to buy from authorized suppliers was settled in 1998 but left DQ a "wounded organization," Keller says.

The chain was bought after the settlement by Warren Buffett ..." - USA Today


The Dairy Queen and the Burger King in one thread. I smell a pregnancy joke.

Buffett purchased the Nebraska Furniture Mart long before the owner died, so how could her heirs be forced to sell the Mart to pay inheritance taxes?

Lamar Fleming said " Mr.Buffett has lawyers that has set up trusts and such that will make his death tax very small."

I'd like you to explain how having "trusts and such" keeps people from paying extate tax.

I'm subject to estate tax and if there was a way around not paying out a small fortune, I assure you I'd know about it.

btw Warren has given billions and will give more when he dies to the Bill and Melinda Gates Foundation. He won't have to pay estate tax on that money. I guess you could argue that he's still screwing the country that made him rich.

RE: using life insurance for tax advantages.

This does not alter the amount of money owed in taxes. It is a strategy to replace the money paid.

Buying life insurance to pay for estate taxes only means that you are paying out while you're alive.

The tax code, written by our country, allows donations to charities because the country generally views the work charities do as being highly desirable for the country. The country does not think it is being screwed out of a dime as it would have to step in and do the work charities do if not for generous donations to charities.

Will Warren's kids get the money he donated to charity? No. It's gone.

Get it? He didn't dodge a darn thing. He's a great citizen. His kids got screwed. He gave away more than his death tax would have totaled.

I agree with John,

Buffett wants to do the right thing. He also is the best at allocating resources and he has determined that the Bill & Linda Gates Foundation will allocate his reources toward health and education more effectively than the government!

That is almost a certainty!

Back in 2000 I realized that the estate tax was going to cause some estate planning problems for me. (back then it was 55% of anything over $675.000).
I got an estate planning lawyer who told me to either get married to reduce the tax, buy life insurance to pay the tax after I'm dead, or have a substantial portion donated to charity. He also told me that charities are using donations to pay millions to lobby Congress to keep the estate as high as it can.

Since then I have stopped all charitable contributions, except to the Red Cross after 9/11 and during the CA. fires. I also decided that the money would be better spent helping out family members that need it. The rest of my contribution dollars go to the Republican National Committee. If they want to bite the hand that feeds them I'll bite back.

Well, Sheldon, it certainly looks like you've hit a 'hot' button with this topic. Whether we like it or not, we are all going to die and for those of us that would like to leave a substantial amount of the money we've spent our lives earning, investing and accumulating to our heirs there are no good solutions unless you happen to be in the 'ultra-rich' category and can hide your money off-shore.
This accumulated wealth had certainly been taxed at least once, remember it was taxed as income, as investment income and possibly even as an inheritance already. So, why not give those of us in the middle class a break and lay off at least one of these taxes by ridding us of the 'death tax'. As for me, I hope to avoid the issue altogether and go out with the change in my pockets after I've done my duty to my family and travelled and enjoyed as much of what I've spent a lifetime earning.