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View Full Version : Buffett's folly



Lager
01-25-2012, 10:05 PM
I used to have some measure of respect for Warren Buffett, primarily in admiration of his business and investment skills. But after watching network news this evening, I have to seriously ask if perhaps some illness or condition might be affecting his reasoning skills as he advances in age.

How far have we dumbed down political discourse in this country if people are actually buying the President's blatant and manipulative political stunt with Buffett's secretary at the SOTU address? Wasn't it audacious enough having her occupy a seat that usually hosts some hero or person who has faced some extraordinary circumstances? But now we have to watch Buffett parade her around the talk circuit as some kind of victim? If he was worried about how much she was paying in taxes, why didn't he compensate her in Berkshire stock? In fact, how do we know he didn't?

It's fine if he wants to lobby for a change in the tax code, just a bit disingenous since he's built quite a fortune taking advantage of it. I'm amazed that they underestimate and insult the intelligence of the average voter so much that they think this stunt will work. Buffett must realize that the President's taking advantage of the fact that most people really don't understand capital gains and why the lower rate is justified. I'm just surprised he's willing to act like such a tool.

Starbuck
01-25-2012, 10:28 PM
I'm surprised, too. He arranged his business so that he pays as little as possible, and then complains about the inequity of it all. Famously, he keeps his salary at $100,000 and then draws beaucoup bucks in dividends, which are taxed at the 15% rate.

Gimmee a break, Buffett!:rolleyes:

Lager
01-25-2012, 10:38 PM
The dividend rate doesn't bother me. Many elderly retirees have to live off dividends since the fed likes to keep bank rates near zero. I don't begrude them that benefit, simply because some super rich dude benefits as well.

Starbuck
01-26-2012, 12:35 AM
Dividend rate is fine. Let's keep it.

But let's compare apples with apples. Buffett does not have a lower tax rate because "the rich don't pay taxes", which is the muddled message that is being heard.