After Finishing Billion Dollar Investing Spree, Buffett Bemoans ‘Income Inequality’

[red states rule]

Is it arrogance that prevents liberals from seeing their blatant hypocrisy? If Buffett feels he is undertaxed why didn't send those billions to the Federal government or donate the money to the "poor"?




Based on his recent investments, it seems that Warren Buffet is incredibly optimistic about the U.S. economy. And while he has been investing at a breakneck pace, he has also been condemning the growing “income inequality” in the U.S.
“You’ve seen a period where the American workers have generally gone no place and where the really super rich as a group increased their incomes five-for-one in this rarified atmosphere,” he said in a recent Business Wire (http://www.businesswire.com/news/home/20111115006090/en/Warren-Buffett-Remarks-European-Debt-Crisis-%E2%80%9CBuffett) article.

Late Monday, Warren Buffett’s Berkshire Hathaway filed its third quarter 13-F form. The form provides investors with a glimpse at the holdings of Wall Street’s biggest funds. While investors do not know the trading strategy used by the big boys, the 13-F form can provide insight to how successful investors think (but keep in mind that this information is subject to change with the end of the third quarter).

Here’s what Berkshire Hathaway is doing with its money:

The most talked about new position is Warren Buffett’s stake in IBM (which is rare considering he generally avoids investing in tech companies). He now has a significant 5.4 percent stake in the blue chip giant at an average price of $170. Warren Buffett explained that IBM fits all of his principles. One such principle is the requirement for top-tier management (IBM recently announced that Virginia M. Rometty will succeed Sam Palmisano as chief executive).

Buffett revealed Berkshire accumulated the stake–about 64 million shares valued at $10.7 billion–from March to October. According to the 13-F, IBM is now Berkshire Hathaway’s second largest stock position.

http://www.theblaze.com/stories/after-finishing-billion-dollar-investing-spree-buffett-bemoans-income-inequality/

[fj1200]

It's not his money.

[logroller]

Is it arrogance that prevents liberals from seeing their blatant hypocrisy? If Buffett feels he is undertaxed why didn't send those billions to the Federal government or donate the money to the "poor"?

If he were to voluntarily give money to the government, he would lose leverage relative to his competitors. He does donate billion$ to the Bill and Linda Gates Foundation, who seek to help the poor.

[Psychoblues]

Indeed, lr. Mr. Buffet does donate billions to a number of causes, foundations, etc. that are all designed to help those less fortunate than himself. He is not alone. God bless those that look after the children, the poor, the indigent, the elderly and those that are in any way in need and cannot otherwise achieve self satisfaction. That's probably a bit too deep for most of you.

Psychoblues

[fj1200]

That's probably a bit too deep for most of you.

Oh brother. :rolleyes: Your location is not "deep south", it's deep S*.

[Psychoblues]

Oh brother. :rolleyes: Your location is not "deep south", it's deep S*.

Sooooooo,,,,,,,you're confused? Just call me a Prophet as I quite accurately forecast this dilemma with some of you.

:laugh2::laugh2::laugh2:

Psychoblues

[fj1200]

Sooooooo,,,,,,,you're confused? Just call me a Prophet as I quite accurately forecast this dilemma with some of you.

Moving ever deeper I see.

[Psychoblues]

Moving ever deeper I see.

Why do you think Mr. Buffet and many other people that have extra wealth donate so much of it to philanthropic causes?

And, just keeping myself entertained. I hope you don't mind.

:laugh2::laugh2::laugh2:

Psychoblues

[fj1200]

Why do you think Mr. Buffet and many other people that have extra wealth donate so much of it to philanthropic causes?

And, just keeping myself entertained. I hope you don't mind.

Because they are charitable people. And Bill Gates playing the guilt trip didn't hurt getting some of those guys to donate, Jobs resisted though. Do you presume I have a problem with charitable giving?

[Psychoblues]

Because they are charitable people. And Bill Gates playing the guilt trip didn't hurt getting some of those guys to donate, Jobs resisted though. Do you presume I have a problem with charitable giving?

Any inclination by you towards charities is really none of my business. But I do appreciate those that freely give and for good causes, good causes being subjective. The world will always have poor and under trodden peoples. And for all eternity some have had charity and concerns for others less fortunate than themselves even to the point of one acquiring only a few crumbs of bread, not nearly enough for even himself but splitting the bounty with others equally or more so needy. Most others? Not so much.

Psychoblues

[ConHog]

Why do you think Mr. Buffet and many other people that have extra wealth donate so much of it to philanthropic causes?

And, just keeping myself entertained. I hope you don't mind.

:laugh2::laugh2::laugh2:

Psychoblues


Short answer. Because if they don't donate it to charity the government would just take it in taxes anyway. Do you really believe Buffett is as altruistic as you seem to be saying he is? Billionaires don't become billionares or remain as billionaires without being greedy bastards whether they are liberal or conservative in nature.

[red states rule]

It's not his money.

Last I saw, Buffett's personal wealth was around $45 billion and he was #2 on the rich list

Again, if he feels he is undertaxed he can send more in AND pay the back taxes he has owed for YEARS

[red states rule]

Any inclination by you towards charities is really none of my business. But I do appreciate those that freely give and for good causes, good causes being subjective. The world will always have poor and under trodden peoples. And for all eternity some have had charity and concerns for others less fortunate than themselves even to the point of one acquiring only a few crumbs of bread, not nearly enough for even himself but splitting the bounty with others equally or more so needy. Most others? Not so much.

Psychoblues

I thought was what all those liberal; social programs were supposed to take care of PB. THe total cost to the US taxpayers is over $10 TRILLION for those programs yet we are told "poverty" has never been worse in America

Where did all that money go?

[fj1200]

Last I saw, Buffett's personal wealth was around $45 billion and he was #2 on the rich list

Again, if he feels he is undertaxed he can send more in AND pay the back taxes he has owed for YEARS

The investment was made by Berkshire Hathaway. I'm sure the rest of the shareholders would be upset if Buffett just sent their money to DC.

[DragonStryk72]

Why do you think Mr. Buffet and many other people that have extra wealth donate so much of it to philanthropic causes?

And, just keeping myself entertained. I hope you don't mind.

:laugh2::laugh2::laugh2:

Psychoblues

Because they've done so since before the income tax existed. The rich of this country have almost always given back in some way, either through donating to worthy causes, or championing some of their own creation.

Money given to the government just gets pissed away down the pipe.

[red states rule]

The investment was made by Berkshire Hathaway. I'm sure the rest of the shareholders would be upset if Buffett just sent their money to DC.

I am, of course, talking about his personal funds

Also, if Buffett feels he is undertaxed, why has he been fighting the IRS for years over what he is told he owes in taxes

Like most libs, Buffett wants OTHERS to pay more - but not himself

And, recent IRS data shows the "rich" do NOT pay a lower percentage then lower paid workers

[fj1200]

His personal funds were not invested.

[red states rule]

His personal funds were not invested.

The man is worth over $40 billion so there is not an issue with Buffett cutting a check to the IRS for a $10 billlion donantion - as well as the back taxes he has refused to pay for the last several years

[fj1200]

The man is worth over $40 billion so there is not an issue with Buffett cutting a check to the IRS for a $10 billlion donantion - as well as the back taxes he has refused to pay for the last several years

There is a problem with him cutting a Berkshire Hathaway check.

[red states rule]

There is a problem with him cutting a Berkshire Hathaway check.

FJ, it is clear you are being dense. I don't know if on purpose. I have made it clear Buffett can easily write a personal check to the IRS if he feels he is ubdertaxed and he can pay the back taxes he has refused for the last several years

Reminds me of other liberals who bellow for higher taxes but try to duck paying their own. John Kerry, Tim Geithner, Charlie Rangel, Tom Daschel, and Claire McCaskill to name a few

[fj1200]

FJ, it is clear you are being dense. I don't know if on purpose. I have made it clear Buffett can easily write a personal check to the IRS if he feels he is ubdertaxed and he can pay the back taxes he has refused for the last several years

Who is being dense? He can write a personal check. The title of the thread refers, however, to Berkshire Hathaway money. Two different pots.

[red states rule]

Who is being dense? He can write a personal check. The title of the thread refers, however, to Berkshire Hathaway money. Two different pots.

The thread title is

After Finishing Billion Dollar Investing Spree, Buffett Bemoans ‘Income Inequality’ (http://www.debatepolicy.com/showthread.php?33348-After-Finishing-Billion-Dollar-Investing-Spree-Buffett-Bemoans-‘Income-Inequality’)

Buffett also invests his personal money as well FJ, he invests to make more money to add to his personal wealth. Then he whines about the poor and how he is undertaxed

Not a different pot just more liberal hypocrisy

[logroller]

Last I saw, Buffett's personal wealth was around $45 billion and he was #2 on the rich list

Again, if he feels he is undertaxed he can send more in AND pay the back taxes he has owed for YEARS

As you said-- he's #2 on the rich list; do you think he built that wealth by being fool-hearted?

This is a repeat of a previous thread in which I explained why Buffett feels the way he does, why he owes those taxes and continues to fight the IRS, and why it would be futile to donate BH proceeds to the IRS. You say FJ is being dense, but you, apparently, didn't absorb my explanation either-- just kept says 'lib this' or 'lib that'-- both excellent talking points:rolleyes:, but pretty lean on details regarding how taxation affects investment strategies. I'll try once more...


[Berkshire Hathaway] averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years, while employing large amounts of capital, and minimal debt.-wiki
Long term growth is BH's bread and butter, and Buffett believes the Bush tax cuts were detrimental to the long-term stable growth of the market-- thereby hurting his bottom line via increased tax-liability relative to short-term investment strategies-- simply "sending more money in" would decrease BH's market leverage.

But why not just say that, instead of "the rich don't pay taxes"; he would, probably say that he already pays more than what the other guys do-- why should he pay more if they don't? Again, its a leverage issue; which at his level (the filthy stinking uber-rich .01%ers) is difficult for most to comprehend. The scope and intricacies of taxation for companies like his take teams of accountants and experts months to compile the thousands of pages which make up their returns. Not to mention the strategic analysis which IS what they do. Trying to explain to the general public how certain types of tax loopholes that do in fact encourage growth, but growth that is unsustainable is difficult, if not impossible. Hence, he comes up with more readily acceptable premise that rich people don't pay enough taxes-- which isn't entirely true, they just don't pay taxes on things Buffett thinks are beneficial to the market, the general public and, first and foremost, his investment strategy. Just because he stands to benefit from the changes he proposes doesn't mean he's selfish or mistaken. Was there an issue with unsustainable growth (ie inflated markets) since the inception of the Bush Tax Cuts???

Berkshire Hathaway stock produced a total return of 76% from 2000–2010 versus a negative 11.3% return for the S&P 500.-wiki

[red states rule]

LR. most of Buffetts' income is from captial gaines which is taxed at a much lower rate than normal earned income

Also the lie that rich people like Buffett pay a lower percentage than his secretary has been proven to be a lie based on IRS numbers

Buffett yelling for higher taxes is like Al Gore yelling about global warming while traveling the world in his private jet


http://cdn.financialsamurai.com/wp-content/uploads/2011/04/toptaxes.jpg

[fj1200]

The thread title is

...

Not a different pot...

I'm aware of the thread title; it reinforces my point that it's a different pot. I daresay that WB is not investing anymore although he is invested.

[logroller]

LR. most of Buffetts' income is from captial gaines which is taxed at a much lower rate than normal earned income

Also the lie that rich people like Buffett pay a lower percentage than his secretary has been proven to be a lie based on IRS numbers

Buffett yelling for higher taxes is like Al Gore yelling about global warming while traveling the world in his private jet


http://cdn.financialsamurai.com/wp-content/uploads/2011/04/toptaxes.jpg
You're confusing his income and taxes with the corporation he operates (completely different beasts), yet again utilizing pundit wit that has nothing to do with why Buffett believes and acts the way he does. He's a billionaire with 44+ years running one of the most respected and powerful corporations in the US, eighth largest in the world last I checked-- who are you to question what he believes is best regarding long-term growth respective of tax strategies?

[red states rule]

You're confusing his income and taxes with the corporation he operates (completely different beasts), yet again utilizing pundit wit that has nothing to do with why Buffett believes and acts the way he does. He's a billionaire with 44+ years running one of the most respected and powerful corporations in the US, eighth largest in the world last I checked-- who are you to question what he believes is best regarding long-term growth respective of tax strategies?

I am not questioning what he believes in regards to business LR

Only his hypocrisy when it comes to paying more in taxes to an already bloated and wasteful government

[logroller]

I am not questioning what he believes in regards to business LR

Only his hypocrisy when it comes to paying more in taxes to an already bloated and wasteful government
Business? We're not talking about a lemonade stand. His business encompasses everything financial-- Risk management, capital growth, global investment...and yes taxes too. If it's monetary in nature, he's aware of how it behaves.
Did you read my first post? i explained why he said what he said; I believe you are capable of understanding the motives behind him saying that and you're just being stubborn. Do you think he's wrong about the effects the 2002 tax cuts had on investment behavior? You seem so hung up on a few billion in taxes, when the effects of those cuts were instrumental in the market collapse that would/should have happened if the government didn't bailout those same investors who buffett says should pay more tax. Instead you say the rich already pay more in taxes. Right, I'm sure they were all too happy to pay taxes on their million dollar bonuses; bonuses made possible because of the billions of taxpayer dollars used to bail them out of their toxic investment strategies.

[red states rule]

Business? We're not talking about a lemonade stand. His business encompasses everything financial-- Risk management, capital growth, global investment...and yes taxes too. If it's monetary in nature, he's aware of how it behaves.
Did you read my first post? i explained why he said what he said; I believe you are capable of understanding the motives behind him saying that and you're just being stubborn. Do you think he's wrong about the effects the 2002 tax cuts had on investment behavior? You seem so hung up on a few billion in taxes, when the effects of those cuts were instrumental in the market collapse that would/should have happened if the government didn't bailout those same investors who buffett says should pay more tax. Instead you say the rich already pay more in taxes. Right, I'm sure they were all too happy to pay taxes on their million dollar bonuses; bonuses made possible because of the billions of taxpayer dollars used to bail them out of their toxic investment strategies.

The 2002 tax cuts pulled the economy out of the Clinton downturn and actually brought in MORE revenue to the government

To bad the R's spent all of it and then some in their final years in Congress

What caused the economy to tank was the Dems obsession with making home ownership a "right" just like they are doing with health ins and healthcare

I am not "hung" up over the few billion in taxes Buffett owes, Mearly he should be willing to pay whatever the government says he owes since he feels he is undertaxed anyway

[logroller]

The 2002 tax cuts pulled the economy out of the Clinton downturn and actually brought in MORE revenue to the government

To bad the R's spent all of it and then some in their final years in Congress

What caused the economy to tank was the Dems obsession with making home ownership a "right" just like they are doing with health ins and healthcare

I am not "hung" up over the few billion in taxes Buffett owes, Mearly he should be willing to pay whatever the government says he owes since he feels he is undertaxed anyway

The dot com bubble had nothing to do with the Bush tax cuts.
I believe we do, in fact, have a right to own property, like homes; you just have to pay for it. What caused the economy to tank was the under-stated risk of over-valued assets. This of course led to a boom in investment, showing growth as purposed-- but ignorant of long-term concerns. The Bush tax cuts encouraged this kind of investment by reducing the tax liability for short term capital growth. Any growth, of course, is conducive to increased tax revenues; just like slash a burn agriculture leads to increased agricultural output.

[fj1200]

What caused the economy to tank was the under-stated risk of over-valued assets. This of course led to a boom in investment, showing growth as purposed-- but ignorant of long-term concerns. The Bush tax cuts encouraged this kind of investment by reducing the tax liability for short term capital growth.

Now you're just talking crazy. One has nothing to do with the other.

[logroller]

Now you're just talking crazy. One has nothing to do with the other.

In the long run, cheaters don't prosper. Short-run though...

[fj1200]

In the long run, cheaters don't prosper. Short-run though...

Free-market competition doesn't work in the short-run?

[logroller]

Free-market competition doesn't work in the short-run?

Not as well as it does in the long-run; but the treasury dept would be rendered useless if they let that happen.