goldenhinde

What You Can - And Can't - Learn from Warren Buffett

With regards to estate tax, Buffett has a perspective most other don't. I cannot describe it - or the source of it but to say that Bill Gates and Bill Gates Sr. are of like mind. I suppose it would be obvious that they have a sense of duty which is stronger within them about the "need" or moral imperative to give back.

Not all wealthy think this way. No surprise there. No all of anyone thinks one way.

I would argue that estate taxes as applied to a closely held business are uneconomic and make no sense. Few businesses can recapitalize themselves at 55% of their net worth - even over 14 years as the federal estate tax allows.

If your money is tied up in a business the estate tax ought to be minimal - say 10%. so amend SEC 6166 - fine.

It is interesting to note that our sense of obligation to others here is nothing compared to the sense of obligation embedded in Asian or Middle Eastern culture. It is simplistic to say that our selfishness has caught up with us. It is also simplistic to dismiss the value that is generated by having a culture in which citizens felt honor in giving back to their communities and countries - rather than foolishish.

It is not entirely clear - other than from a more middle class perspective - that Buffett has it wrong.