Warren Buffett is a cheating hypocrite. He is demanding that others pay higher taxes while, as reported, he is avoiding paying taxes because he leaves his money in his corporation to avoid paying capital gains taxes. Undoubtedly, Buffett applies nearly all his expenses, with the exception his small house he has lived in for nearly his whole adult life, to his corporation Berkshire-Hathaway.
Buffett likes to brag that he pays fewer taxes than his secretary. That’s because he pays himself a small salary, less than she gets meaning he doesn’t have to pay earned income taxes, but doesn’t pay capital gains. In effect he is cheating the government that he demands that American pay higher taxes.
Buffett has indicated he will give most of his money to the Bill and Melinda Gates Foundation when he dies which means that the federal government will get basically nothing in taxes from his estate.
Buffett has three children. To get around paying taxes on money he gives to them, he established three foundations one for each of his children Howard, Peter and Susie. He then gave each of the foundations at least one billion dollars and made the children CEO’s of their individual foundations. It is not reported precisely, how much each of the children earn for their work as CEOs, but nearly all of their activities, including their homes, vacation homes, and the rest of their toys can be charged to the foundations as foundation expenses and they would not have to pay taxes on those items.
So while Buffett demands that others pay higher taxes, he chooses not to. Don’t you think that’s a little hypocritical on Buffett’s part?