Buffett: Don't Repeal the Estate Tax

Speaking before a Senate Finance Committee hearing Wednesday, billionaire investor Warren Buffett came out against repealing the estate tax and in favor of a $1,000 annual tax credit for low-income families. "I think we need to... take a little more out of the hides of guys like me," he said in off-the-cuff remarks. "A meaningful estate tax is needed to prevent our democracy from becoming a dynastic plutocracy." A 2001 law stipulates that the estate tax will diminish gradually until 2010, when it will be waived completely for a year. In 2011, it will return at its original strength, although the Bush administration is advocating its permanent repeal. Buffett suggested reforming the tax, rather than repealing it, so it takes increasing bites depending on the size of the estate - rather than taxing all eligible estates equally. At the top end, "the rate ought to be higher than 45%," he said. He contested the argument that family-held businesses should have special treatment, arguing that if a business is big enough to owe the tax, it's big enough to borrow against the estate. "They may not prefer to pay the tax, but they have the resources," he said.

Sources: Wall Street Journal, Forbes, MarketWatch, AP
Commentary: Credit Crisis May Prove Windfall for Berkshire - WSJ • Have You Read Your Classic Buffett? • Warren Buffett, Derivatives Speculator?
Stocks to watch: BRK.A, BRK.B

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Comments

[hatarakiman:]

Mr. Buffett thinks too much. Is Bill Gates' ancestor billionaire? How about Larry Ellison, Mike Dell, or even Mr. Buffett's parents? Most of billionaires in the Forbes list build their wealth by their hard working, not from inheritance.
No matter those, who inherit huge wealth, a) waste money or b) invest money. Both are good to economy. Giving the money to the Government "directly" might not be the best way to the economy.
No matter how, the Government will get the money from sales tax, luxury tax, capital gain tax, income tax... Government has thousands of ways to get the money back from the flow of the money system.

2007 Nov 16 08:09 AM

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estate tax only hurts the poorer person. buffet said it before 50% tax on someone making 100 million a year is much easier to pay than someone making 250,000 a year. And yes, in some parts of the country after tax 250,000 isn't that much for work 70+ hours a week.

2008 Oct 03 12:21 PM