Buffet: Everybody should pay more taxes except me!

[GhostTX]

Well....basically what he's doing.

On Monday, The Blaze reported that Warren Buffett’s company, Berkshire Hathaway, owes back taxes dating to 2002. The news is significant because in a recent op-ed column for the New York Times, Buffett, one of President Obama’s staunchest supporters, stated that, to now, the “super wealthy” have been coddled and deserve to be taxed at an even higher rate than they currently are.

When Buffett made his revelation earlier in the month, most assumed his company was up-t0-date on its taxes. That assumption has turned out to be incorrect, however — and to a substantial degree perhaps.

According to Berkshire’s 2010 annual report, the company has been in a near decade-long struggle with the IRS over its own taxes. Using public documents, a certified public accountant detailed Berkshire’s tax problems to Americans for Limited Government researcher Richard McCarty, revealing the damage could be close to $1 billion. Netright Daily adds:

According to page 56 of the company report, “At December 31, 2010… net unrecognized tax benefits were $1,005 million”, or about $1 billion. McCarty explained, “Unrecognized tax benefits represent the company’s potential future obligation to the IRS and other taxing authorities. They have to be recorded in the company’s financial statements.”

He added, “The notation means that Berkshire Hathaway’s own auditors have probably said that $1 billion is more likely than not owed to the government.”

$1 billion is not an insignificant chunk of change, even for Buffett, representing about 0.2 percent of the company’s $372 billion in total assets.

http://www.theblaze.com/stories/how-much-is-buffetts-berkshire-hathaway-back-tax-bill-exactly-about-1-billion/

[Denny]

Just another fucking hypocrite...

[CJ]

oh geez, he's the premier liberal mouthpiece... it'll get "corrected" real quick. You'll get a press release in a few days saying it was a mistake and it's already been taken care of - guaranteed.

[Slowhand]

It won't be the answer any of you want to hear, but this isn't uncommon whatsoever. Deferred tax attributes are a part of every single business in this country, and the IRS will often get involved in arduous battles over them in which their examiners are completely unqualified.

It doesn't mention if the auditors cited are internal or external, but no auditor, internal or external, can just throw the classification of "more likely than not" onto a deferred tax attribute simply because they don't want to pay it; they've got to be able to reasonably defend their position to the IRS, and it sounds like they've been able to so far.

This has absolutely nothing to do with Warren Buffet's personal finances or the statements he made regarding the super wealthy. Move along, or find another spot on here:

[Denny]

Ya, and he has no say in it... right.

Funny that he failed to mention it in his "patriotic" rant. Fuck that worm.

[stevo]

It won't be the answer any of you want to hear, but this isn't uncommon whatsoever. Deferred tax attributes are a part of every single business in this country, and the IRS will often get involved in arduous battles over them in which their examiners are completely unqualified.

It doesn't mention if the auditors cited are internal or external, but no auditor, internal or external, can just throw the classification of "more likely than not" onto a deferred tax attribute simply because they don't want to pay it; they've got to be able to reasonably defend their position to the IRS, and it sounds like they've been able to so far.

This has absolutely nothing to do with Warren Buffet's personal finances or the statements he made regarding the super wealthy. Move along, or find another spot on here:

I would think differently, as he is describing a class that he himself is a part if not defines, and is guilty of the very thing he is advocating against.

Stevo

[Slowhand]

I would think differently, as he is describing a class that he himself is a part if not defines, and is guilty of the very thing he is advocating against.

Stevo

Didn't know that Berkshire Hathaway was a sole-proprietorship; pretty rare to see an investment fund with unlimited personal liability these days!

[Slowhand]

Ya, and he has no say in it... right.

Funny that he failed to mention it in his "patriotic" rant. Fuck that worm.

A. BH has a CFO and a comptroller and a whole gaggle of accountants to handle the firm's taxes; I highly doubt Buffett concerns himself with the deferred tax assets and liabilities his firm has.

B. You're still ignoring the fact that this is an absolutely 100% positively completely ordinary way to conduct business and that it's likely that the firm won't have to pay a large chunk of those taxes and that it will be via 100% completely utterly legal means. Fund accounting is gross and hairy; these things can take a while, especially when all of the qualified people are working in industry and the IRS is left with their government goonies.

C. I'm in no way a Buffett supporter and think many of his ideas on taxation are absurd and ill-conceived, but that doesn't have anything to do with his firm's taxation strategies.

[Denny]

A. BH has a CFO and a comptroller and a whole gaggle of accountants to handle the firm's taxes; I highly doubt Buffett concerns himself with the deferred tax assets and liabilities his firm has.

B. You're still ignoring the fact that this is an absolutely 100% positively completely ordinary way to conduct business and that it's likely that the firm won't have to pay a large chunk of those taxes and that it will be via 100% completely utterly legal means. Fund accounting is gross and hairy; these things can take a while, especially when all of the qualified people are working in industry and the IRS is left with their government goonies.

C. I'm in no way a Buffett supporter and think many of his ideas on taxation are absurd and ill-conceived, but that doesn't have anything to do with his firm's taxation strategies.

I'm not ignoring anything. If he is so concerned that he's not paying enough into the system, no one is holding him back. But to pull the bullshit he did by publically demonizing everything that the GOP has PROMISED it would try to do (which is what got them elected) while BH is basically shitting on a plate and saying dinner is served, is hypocritical in the least. Maybe I should have reworded "has no say in" to "has no knowledge of."

[Broncojohnny]

Stupid ass argument, Buffett only owns 38% of Berkshire.

[Denny]

Stupid ass argument, Buffett only owns 38% of Berkshire.

LMAO! I retract everything I said about that saint.

[Slowhand]

I'm not ignoring anything. If he is so concerned that he's not paying enough into the system, no one is holding him back. But to pull the bullshit he did by publically demonizing everything that the GOP has PROMISED it would try to do (which is what got them elected) while BH is basically shitting on a plate and saying dinner is served, is hypocritical in the least. Maybe I should have reworded "has no say in" to "has no knowledge of."

What you're suggesting he do is be managerially opportunistic and subvert the shareholders of BH in order to further his own agenda. As a manager, his first and foremost duty is to best serve the interests of ownership (stockholders) using whatever legal means necessary. As an owner, he's got a lot of other stockholders to contend with.

It's a for-profit business and it isn't "his" firm; their goal is to make money and their agenda, by law, needs to be distinct from his. His personal views on taxation of the superrich have nothing to do with BH's tax situation.

[Denny]

What you're suggesting he do is be managerially opportunistic and subvert the shareholders of BH in order to further his own agenda. As a manager, his first and foremost duty is to best serve the interests of ownership (stockholders) using whatever legal means necessary. As an owner, he's got a lot of other stockholders to contend with.

It's a for-profit business and it isn't "his" firm; their goal is to make money and their agenda, by law, needs to be distinct from his. His personal views on taxation of the superrich have nothing to do with BH's tax situation.

No, I know he can't do that (Thus, the reason I said I should change the wording. Stay up). But it is pretty pathetic that it's perfectly OK for his "investments" to do that (legal or not) while he is up on his soapbox with nothing more than a cheapshot at the GOP because he KNOWS nothing more is going to come of it other than make Republicans look bad for carrying out their promise to the people who voted them in.

[Hobie]

I often disagree with Slowhand and agree with Denny, but Slowhand's right. Seems like The Blaze is up to spin/misleading journalism/faggotry at the expense of accurate reporting. Fuck, they're trolling! LOL.

For 10+ years I've been aware that Buffet thinks the system is out of whack, but that Berkshire Hathaway is doing what's best for their shareholders as they should.

[Denny]

Just like the politicians that were damning the stimulus and accepting money for their states... gotcha.