Warren Buffet must be either a fool or a knave. Or maybe he's just ready for the dog track.
While I was in the Canadian wilderness, Warren Buffet said the rich should pay more taxes. No doubt some rich should pay more, particularly the hedge fund and private equity fund managers ... and Warren Buffet himself.
Buffet gets most of his income and wealth from stock in Berkshire Hathaway, which he has held for many years, thus qualifying for long term capital gains tax treatment on whatever shares he sells. That rate is 15%.
But does he even pay that? Nope.
He donates stock to charities such as the Gates Foundation and pays nothing - the gain is never realized for his tax return. And he even gets a tax deduction on the full value of the stock donated. That deduction offsets whatever other ordinary income which would be taxed at rates as high as 35%. In summary, he pays no gain on the stock donated, yet gets a full value tax deduction for its value: that's free money.
And he says he'll leave all his wealth to the Gates Foundation, thus avoiding any estate taxes. No capital gains taxes will ever be paid.
Warren Buffet is shirking paying his fair share to support the government, including the elderly and the poor and for national defense and for all the other services which benefit him
He's a freeloader.
How can those loopholes be closed?
Make all capital gains be realized and due when any transfer of the stock occurs, whether on donation or on death. Do not permit those taxes (already low) to be offset by charitable donations.
Then billionaire freeloaders would be forced to pay their fair share.
Word of the Day
"Hie" - verb, intransitive and / or reflexive [$10] Shakespeare. Archaic and poetic.
Hie means go quickly
Sentence: Warren, hie to the dog track, you old hypocrite.