I Got Mine! Pt. II

Warren Buffet is a big fan of the “estate tax” (aka the “death tax”) reasoning that dynastic wealth is not healthy for a democracy. We had some thoughts on Buffett and the death tax, previously. But is he being hypocritical for the manner of his donations to the Bill and Melinda Gates Foundation?

All of this leaves me perplexed by the way Buffett is contributing the bulk of his assets to the Bill and Melinda Gates Foundation. Buffett has received excellent legal advice to guarantee that his contributions will not generate federal tax. This provokes the question: Why?
Buffett could give his fortune to the Gates Foundation in a manner which generates federal tax. This would leave less for the foundation but more for the federal fisc. Indeed, Bill Gates, like Warren Buffett, advocates retaining the federal estate tax. He too could leave his assets to his foundation in a fashion which would share part of those assets with Uncle Sam

On the surface, we’re inclined to give Buffett a pass on this as his reasoning for the death tax was based upon the federal government merely being that instrument which would prohibit the continuance of this supposed dynastic wealth. Buffett’s logic did not seem to account for the death tax serving as a way to line the government’s pocket.

However, given that charities these days often become tax shelters in themselves and which profer their largesse in the form of salaries to its executives (family members?) and board members as well as other goodies via “administrative fees”, any sort of black and white conclusion becomes difficult to attain.

We do however, strongly resent now more than ever, Buffett’s support of the death tax. The fact that the government can take half of what a man who has worked hard for (and which has already been taxed on the front end) and invested wisely in order to leave behind as a down payment on a house for his children or as tuition help for his grandchildren strikes us as the actions of an out-of-control government that needs to be taken out at the knees.

So, again.... Screw you, Buffett!