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News :: Political-Economy |
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2nd Wealthiest Person in U.S.: Warren Buffett Urges Higher Corporate Taxes |
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by Reuters
(No verified email address) |
07 Mar 2004
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"If class warfare is being waged in America, my class is clearly winning." |
NEW YORK - Warren Buffett, the world's second-richest person, wants to pay more taxes. And he wants the rest of corporate America to pay more too.
In his annual letter to shareholders of his Berkshire Hathaway Inc. holding company, released on Saturday, the 73-year-old Buffett said Berkshire's taxes rose more than eleven-fold to $3.3 billion from 1995 to 2003, as profits rose ten-fold to $8.15 billion.
During the same period, federal income taxes paid by all U.S. companies fell by 16 percent, to $132 billion.
"We hope our taxes continue to rise in the future -- it will mean we are prospering -- but we also hope that the rest of corporate America antes up along with us," said Buffett, who has previously criticized Bush administration tax policy.
Tax cuts won by President Bush, amounting to $1.7 trillion over 10 years, have helped push the federal budget deficit to record levels, as have a weak economy and higher spending for defense and domestic security.
"Tax breaks for corporations -- and their investors, particularly large ones -- were a major part of the administration's 2002 and 2003 initiatives," Buffett said. "If class warfare is being waged in America, my class is clearly winning."
Buffett's personal wealth is closely tied to his company. Forbes magazine last month put Buffett's net worth at $42.9 billion, most of which is in Berkshire stock. His wealth was just behind that of Microsoft co-founder Bill Gates, whose estimated net worth stood at $46.6 billion.
Buffett's letter, which is 21 pages long this year, is highly anticipated by investors. Unlike most shareholder letters seen as heavy with banalities, Buffett's are considered fun to read and sometimes controversial.
Last May, Buffett wrote a Washington Post opinion article criticizing a key element of Bush's tax package -- a cut in tax rates on corporate dividends. Buffett urged that any tax cuts should go to lower-income people or others "who both need and will spend the money gained."
Buffett said corporate income taxes accounted for 7.4 percent of fiscal 2003 U.S. tax receipts. Except for 1983, that was the lowest in the last 70 years, he said.
The billionaire has not always been critical of anti-tax politicians. Last year, he backed Arnold Schwarzenegger's successful bid to become California's state's governor, despite the actor's campaign pledge not to raise taxes to reduce the state's mammoth budget deficit.
Berkshire's $3.3 billion tax payment "will almost certainly place us among our country's top ten taxpayers," Buffett said. That's a big change from 1944, when as a 13-year-old newspaper carrier, Buffett filed his first personal tax return.
He owed $7.
© Copyright 2004 Reuters Ltd
http://www.Reuters.com |
See also:
http://www.berkshirehathaway.com/2003ar/2003ar.pdf
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Copyright by the author. All rights reserved. |
