Buffett the Benefactor ( Avoids Death Taxes )

The New York Sun ^ | Jun 26, 2006 | Editorial & Opinion

[george76]

Mr.Buffett. As an avowed supporter of the estate tax, Mr. Buffett could have let the government take its share of his estate after he dies.

But just as Mr. Buffett has accumulated his vast wealth without paying much personal income tax, he has found a way to avoid the tax man in this maneuver as well, even writing in his letter to Bill and Melinda Gates that a condition of the gift is that the foundation “must continue to satisfy legal requirements qualifying my gifts as charitable and not subject to gift or other taxes.”

On the estate tax, watch what Mr. Buffett does, not what he says.

[Incorrigible]

Did he reply with nothing but a stutter?

:-)

[Huck]

Some would see this as an argument for the estate tax, in that it incentives this type of philanthropy.

[george76]

The author is saying Buffet is an avowed supporter of the estate tax... for us little people.

But Buffet is not an avowed supporter of the estate tax... for himself .

[Screamname]

What gets me about these guys is how they are giving this money away to "fight AIDS, fight poverty, fight this fight that etc ec etc.." Why don`t they try promoting instead? This thing called Democracy? It`s not perfect, but teach a man to fish....If done right, it can kill off the corruption that kills democracy in the first place, and it would be cheaper... Create incentives...A million here a million there if you hold regular non interfered elections.

Look at Mexico, this is a country that has every possibility in the world to become a major world power, but the corruption is completely out of control it will never happen. You can`t even call the police without making some pay-offs. WHo is allowing this? Vincente...Vote the bitch OUT, get this moron the hell out of office! Donate a few million to the campaign of a guy who won`t allow that. If he sits on his ass and lets himself be bought off, do it again with a new guy and again and again... To just throw billions though at these charities is insane. Look at the US, we couldn`t even get the 911 money to the families. F- charities. No middle man, get the great leaders into position first, ensure that happens.

[nickcarraway]

He is giving money to "charities" which will prevent people from having the opportunities he benefitted from.

[george76]

With clever lawyers, the elites like Teresa Heinz Kerry avoid income taxes with off-shore tax shelters, etc.

These billionaires only pay taxes when they want to.

[HaveHadEnough]

Anyone can avoid the estate tax (I mean, under the proposed law that is likely to pass, only those with over $5 million are going to have to worry about this at all, and all money going to a spouse is completely estate tax free) if they give their money to charity.

I can't believe the author is suggesting that Buffet would be a better stand-up kind of guy if he left no money to charity and let the government take a good-size chunk of it.

[Mamzelle]

I know of one well-off fellow who created a "educational and scientific" foundation and donated a wad to it and deducted the wad. Then he used the foundation to fund "adventure vacations" for himself and his wife, like safaris and Antarctic cruises.

The idea for a foundation like this is that the heirs get to keep the investment interest and profits while being required by law to donate 5% of the foundation's assets to some bonafide charity.

But this fellow has about spent the whole wad on his "scientific" vacations. LOL!!

I know another well-off fellow whose wife set up another "educational" foundation, and has used about half-a-million of it over the years to buy her camera equipment so she can make "documentaries" that nobody watches.

A lot of these foundations are ways to donate money to yourself and not only take the charitable deduction--but to style yourself as a bighearted philanthropist.

[eleni121]

And their ultimate goal is to get the rest of us - government - to pay for it all.

[george76]

The author is pointing out that Buffet says one thing, but does the opposite.

[Screamname]

This is what really happens when this money is given to these "charities"....

"Yo! New guns, new tanks, we gonna rule this muthaeffin` town!"

You know what happens to AIDS drugs? They get sold off! My brother is friends with a girl who works in the same countries "Angelina and Brad" cry so much about, and what she said is all this stuff is stored in everything from sh*t hole warehouses to tents, and it is sold off by the gangs who run these areas..."My kid needs AIDS drugs..I need food".. Then they go.."How much money you got?" Then it is sold off, and with that money they buy guns and whatever they want. BMW`s, rocket launchers, there is NOTHING charitable or "free" about any of this charity BS. There is too many middle men, it NEVER works, there is always corruption.

[eleni121]

Here is the list of companies Berkshire Hathaway owns outright and the companies he has a substantial holidings in:

http://www.buffettsecrets.com/berkshire-hathaway-holdings.htm

[george76]

Many ( not all ) of these foundations are clever tax dodges.

A clever lawyer will put the airplanes, boats, cars, vacations...in this tax shelter.

This is just one of many dodges.

[Paleo Conservative]

I love it when the liberals big supporters turn out to be hypocrits. I applaud Gates and Buffet for their philanthropy. Im also happy to see them stick it to the feds.

It's a lot easier to stick it to the feds when you have an estate that large than if you have $1-$10 million estate. The heirs of people with smaller estates ofen have to liquidate the property at a substantial loss to pay the inheritance taxes.

[HaveHadEnough]

Perhaps. I just have never heard him say that people should not give to charity so as to avoid estate and gift taxes.

[traumer]

Can't take it with you....

[rlmorel]

The other thing is...pouring money into areas that cannot develop an economy on their own is like throwing bricks in the Grand Canyon.

Especially with NGOs involved...and the UN...and Europe.

I am happy Gates and Buffett want to do something with their money. Perhaps it will bring some good. But given they are big libs, I wouldn't hold my breath.

[Jaded]

I can't believe people here agree.

[Paleo Conservative]

I can't believe the author is suggesting that Buffet would be a better stand-up kind of guy if he left no money to charity and let the government take a good-size chunk of it.

We could make a little bit of a dent in this year's buget deficit with the inheritance taxes on that amount of money. With $37 billion could just about pay for the deficit for 37 days.

[Screamname]

Before they can build they need to build the foundation. You have to get the right leaders, the corruption out, otherwise it is just a waste of money. It`s like giving money to a drunken bum to try to get him on his feet; He will just keep drinking it away until the drinking is taken care of first.

Take New York city for example...It use to be one of the most corrupt cities in the country...The Federal government would constantly throw money at it with no effect. Then the corruption was slowly routed it out...then A Repulican God named Guliani came along and put in the final nail.

Today, if one politician is found accepting a bribe, he is ripped to shreds in the press and the DA`s are after him like rabid dogs (unlike New Jersey... If you are corrupt over there, you get book deals and multi-million dollar mansions, especially if you say you are a "gay American".) That will change though. Eventually the people will wake up and stop electing members of the Treason party despite how many times Bruce Springsteen yells.