Monday, August 15, 2011

Stop Coddling Warren Buffett

Tim Carney reminds us:
As most of the media goes gaga over Billionaire Obama fundraiser Warren Buffett calling for tax hikes, (like he did in 2001, and 2004, and plenty of times in between), let’s remember a few things. 
Buffett Profits from Taxes He Supports

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.

Buffett Profits from Government Spending

Buffett made about a billion dollars off of the Wall Street bailout by investing in Goldman Sachs on the assumption Uncle Sam would bail it out. He also is planning investments in ethanol giant ADM and government-contracting leviathan General Dynamics.

If your businesses’ revenue comes from the U.S. Treasury, of course you want more wealth


  1. Let's not forget that Tax Exempt bonds, which is usually the investment that makes up a large portion of an ultra wealthy individual's portfolio, goes up in value as tax rates rise. If you own a large amount of muni bonds that have been hit by the local government revenue short fall fear premium, higher taxes would be a great way to get back some of that risk premium.

  2. Oddly enough I wrote about this very thing several months ago...