From Big Government:
Surprise! Warren Buffett’s Company Has $1 Billion Federal Tax Obligation
October 13, 2011
“It’s time for our government to get serious about shared sacrifice.”
– Warren Buffett, NY Times Op-Ed August 15, 2011
Those high-minded and selfless words from one of the nation’s richest men inspired the Democrats’ latest push for higher taxes on job creators. It also sounds like one of the creepy slogans chanted and repeated by the aromatic “Occupy Wall St” protesters when they decry corporate greed and the doomed capitalist system.
Yes, Mr. Buffett has entered his ninth decade of this mortal coil as somewhat of a folk hero to progressives and leftists who would normally be revolted by a multimillionaire investor. But Buffett (whose many holdings include the GEICO insurance company) has purchased a little mediainsurance by speaking out against his own tax rates and has practically begged the government to take more of his money and money from the rest of us who are business owners and are trying to be next decade’s Warren Buffett.
Meanwhile, according to research done by Americans for Limited Government, Buffett’s company, Berkshire Hathaway, has a decade-old dispute with the IRS over its corporate tax bill, an obligation worth $1 billion dollars, so far.
“The company has been short-changing the tax collection agency for much of the past decade. Mr. Buffett’s company has not fully settled its tax bills from 2002-2009. Yet he says he’d happily pay more. Except the IRS has apparently been asking him to pay more going on nine years.”
If Buffett’s 15% capital gains tax rate were raised to the 35% income tax rate for his tax bracket, it would certainly bring in a little bit more money for the federal government, but it wouldn’t raise $1 billion more dollars in revenue.
The details of the tax obligation center around the corporate taxes filed by Berkshire Hathaway for the years 2002-2004. The IRS caught Buffett’s company shortchanging the American government. Buffett, the poster boy for “shared sacrifice”, responded by releasing his lawyers on the IRS and threatening protracted litigation. The company is working on a settlement with the IRS.
At the same time, the IRS has opened up another investigation focusing on the 2005-2006 tax filings and again, Buffett’s company is threatening a long and costly fight. The top corporate tax rate is 35% and according to Forbes Magazine, the effective rate for Berkshire Hathaway hovers around the 29% range.
As Mr. Buffett is trotted out in front of the “super-committee” in Washington to speak in virtuous tones about how we must all pay our “fair share”, I hope one of the congressmen or senators reminds him that he still owes a bit of money for that microphone he’s using to gain more legacy enhancers and glowing paragraphs in his NY Times obit.
***Written by Larry O’Connor***
Big Bloviators like Buffett and George Soros speaking about “the rich paying their fair share”. One owes $1 BILLION in federal taxes, the other has his money offshore to avoid federal taxes. Yet, both will excoriate rich businessmen/women to pay “their fair share”
Still the public should know that Soros keeps his billions safe from American taxation by having his money offshore in secret accounts; however, it is important to note that if any of us campesinos attempt to hide funds in this manner we will be serving time in the slammer. We must remember that Soros has adjusted his life to the fact that he is a self-professed deity and is destined to be among the supreme ruling Elite of the world. Therefore it is unnecessary to subject his fortune to the same taxation we as ordinary Americans endure in order to bring about the Wealth Redistribution that he and Obama have envisioned for the world.
by William Engdahl
EIR Investigation Executive Intelligence Review (EIR), November 1, 1996
The Quantum Fund is registered in the tax haven of the Netherlands Antilles, in the Caribbean. This is to avoid paying taxes, as well as to hide the true nature of his investors and what he does with their money.
In order to avoid U.S. government supervision of his financial activities, something normal U.S.-based investment funds must by law agree to in order to operate, Soros moved his legal headquarters to the Caribbean tax haven of Curacao. The Netherlands Antilles has repeatedly been cited by the Task Force on Money Laundering of the Organization for Economic Cooperation and Development (OECD) as one of the world’s most important centers for laundering illegal proceeds of the Latin American cocaine and other drug traffic. It is a possession of the Netherlands.
Soros has taken care that the none of the 99 individual investors who participate in his various funds is an American national. By U.S. securities law, a hedge fund is limited to no more than 99 highly wealthy individuals, so-called “sophisticated investors.” By structuring his investment company as an offshore hedge fund, Soros avoids public scrutiny.
Soros himself is not even on the board of Quantum Fund. Instead, for legal reasons, he serves the Quantum Fund as official “investment adviser,” through another company, Soros Fund Management, of New York City. If any demand were to be made of Soros to reveal the details of Quantum Fund’s operations, he is able to claim he is “merely its investment adviser.” Any competent police investigator looking at the complex legal structure of Soros’s businesses would conclude that there is prima facie evidence of either vast money laundering of illicit funds, or massive illegal tax evasion. Both may be true.
To make it impossible for U.S. tax authorities or other officials to look into the financial dealings of his web of businesses, the board of directors of Quantum Fund NV also includes no American citizens. His directors are Swiss, Italian, and British financiers.
George Soros is part of a tightly knit financial mafia—“mafia,” in the sense of a closed masonic-like fraternity of families pursuing common aims. Anyone who dares to criticize Soros or any of his associates, is immediately hit with the charge of being “anti-Semitic”—-a criticism which often silences or intimidates genuine critics of Soros’s unscrupulous operations. The Anti-Defamation League of B’nai B’rith considers it a top priority to “protect” Soros from the charges of “anti-Semites” in Hungary and elsewhere in Central Europe, according to ADL National Director Abraham Foxman. The ADL’s record of service to the British oligarchy has been amply documented by EIR (e.g. The Ugly Truth About the Anti-Defamation League [Washington, D.C., Executive Intelligence Review: 1992]).
According to knowledgeable U.S. and European investigators, Soros’s circle includes indicted metals and commodity speculator and fugitive Marc Rich of Zug, Switzerland and Tel Aviv; secretive Israeli arms and commodity dealer Shaul Eisenberg, and “Dirty Rafi” Eytan, both linked to the financial side of the Israeli Mossad; and, the family of Jacob Lord Rothschild.