Tag Archive: Warren Buffett


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Warren Buffett’s Berkshire Hathaway Enjoys 51% Rise In Profits

 

 

 

” Berkshire Hathaway, the investment firm led by Warren Buffett, has posted a 51pc rise in profits thanks to the performance of its insurance companies and the rising value of the businesses it owns stakes in.

Berkshire said net income rose to $4.89bn (£3.14bn) in the first quarter of its financial year on the back of revenues growing 15pc to $43.9bn.

The conglomerate controls almost 100 companies across insurance, utilities, clothing and consumer goods, but also holds stakes in some of the world’s biggest businesses, including Coca-Cola, Wells Fargo, and Tesco, which is Berkshire’s biggest holding outside the US.”

 

 

 

 

 

 

 

NewsBusted 4/17/13

 

 

 

 

 

 

 

 

Tax Deal Is A Victory For Hollywood Cronyism

 

 

 

 

” Whereas “you guys”—by which Matthews meant the good guys, the Hollywood liberals—donate to Obama “for cultural reasons because you share values with the president.”

“That’s exactly right,” Reiner said. “And it’s interesting. But the Hollywood community is the only donor base, as you call it, that would—that has no quid pro quo.”

Yes, it is interesting. It is interesting that Matthews and Reiner were so completely and totally ensconced in their blanket of self-righteousness that they never stopped to consider that “people on Wall Street and the business world, in Texas and around there,” might also donate to Republicans because they share Republican cultural values. “

 

No Quid Pro Quo Here …

 

” The sordid details of the fiscal cliff bill are more difficult to ignore. Once again the “only donor base” that “has no quid pro quo” saw its quo multiply nicely. The tax break that allows film and television studios to expense millions of dollars if they operate within the United States costs around $300 million a year. It was set to expire at the end of 2012. However, the efforts of Chris Dodd at the Motion Picture Association of America and of other Hollywood minions ensured that American taxpayers would provide this subsidy to Katzenberg and Spielberg and Clooney and company for at least another two years.”

 

Only In Obamerika Do Those Clamoring Loudest For Tax Hikes Receive The Best Tax Breaks

 

” The Sunlight Foundation Reporting Group has the most comprehensive catalogue of the gifts included in the fiscal cliff bill for Obama’s favorite constituencies. There is the Production Tax Credit, which benefits the alternative energy industry and its liberal benefactors. There is the exemption for New York City bonds, which is intended to help the city recover from a terrorist attack that occurred 11 years ago but which also helped line the pockets of Goldman Sachs and the future members of Democratic administrations employed there. There is a tax credit for maintaining railroad tracks for which BNSF Railway lobbied intensely. BNSF is a subsidiary of Berkshire Hathaway, which is of course the conglomerate operated by the billionaire Democratic donor and oddball Warren Buffett.”

 

 

 

… How Much Government Would They Pay For?

 

 

 

taxes

taxes (Photo credit: 401(K) 2012

 

 

 

 ” Let’s assume that the two winners who will split the jackpot take the estimated $379.8 million lump sum. After all, with President Obama’s call for a tax increase on upper income earners, a call echoed by Warren Buffett, these newly minted millionaires could face a 39.6 percent rate—not the current 35 percent.

 

Suppose they’re smart, though, and take the money this year. Then the federal government keeps $132.9 million and the winners keep $246.9 million—less whatever state and local taxes they will owe.

 

Total spending in fiscal year 2012 was $3.54 trillion. Put in other terms, the government spent an average $9.7 billion a day, $404.1 million an hour, and $6.7 million per minute. Do the math, and that $132.9 million in tax revenue would fund the entire federal government for a whopping 20 minutes. “

 

A Very Good Question 

 

” Basically because he’s a rich, successful guy (which is why a lot of people are listened to on a lot of subjects).

To that end, economist and former Romney advisor Greg Mankiw has a short post talking about Buffett as a master of “tax avoidance,” wherein he lists four things Buffett does to avoid paying taxes. “

 

 

 

 

” Other folks, in the past, have charged that Buffett specifically benefits from the tax proposals he backs.

Tim Carney of the Washington Examiner has pointed out:

Buffett regularly lobbies for higher estate taxes. He also has repeatedly bought up family businesses forced to sell because the heirs’ death-tax bill exceeded the business’s liquid assets. He owns life insurance companies that rely on the death tax in order to sell their estate-planning businesses.”

 

 

Remember This :

 ” But if he were truly sincere, perhaps he might simply try paying the taxes the IRS says his company owes? According to Berkshire Hathaway’s own annual report — see Note 15 on pp. 54-56 — the company has been in a years-long dispute over its federal tax bills. “

 

And This :

 ” What is represented by the 6% or 11% statutory rate v. “paid” differential?  “Loopholes”, aka the normal operation of the tax code.  The taxes are not legally payable yet as a function of the tax code and may never be actually paid if the changes in asset values are not “recognized” for tax purposes.   However it’s important to note that the 11% or 6% differences are not exactly chump change either.  5.9% of the pre-tax earnings total of $38.2 billion reported over those three years represents $2.2 billion in arguably “underpaid” tax and the 11.1% differential would represent $4.25 billion “underpaid” tax.  If Berkshire were an “evil” oil company these figures would likely be spun this way. “

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