'Record-Shattering': Warren Buffett's Berkshire Hathaway Has Now Paid $101 Billion in Cumulative Federal Income Tax

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4 hours ago

When Warren Buffett assumed control of Berkshire Hathaway (BRK.B) (BRK.A) in 1965, the company was a struggling textile manufacturer that had not paid federal income tax for years — a fact Buffett described as 'an embarrassment' for such a venerable firm. Fast forward six decades, and Berkshire Hathaway has become not only a global conglomerate but also America's single largest corporate taxpayer. In his 2024 annual letter, Buffett revealed that the company's cumulative federal income tax payments have now surpassed $101 billion.
This staggering sum is more than a financial milestone; it represents a direct infusion into the nation's ability to fund essential services. To put $101 billion in perspective:
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Military Budget: The U.S. Department of Defense's annual budget for 2024 was approximately $850 billion. Berkshire's lifetime tax payments could fund more than 11% of the entire U.S. military for a year, or fund the Marines for two full years.
Healthcare and Education: $101 billion could finance the federal government's entire Medicaid program for several months, or fund the Department of Education's discretionary budget for more than an entire year.
State Revenue: For comparison, many U.S. states have annual budgets well below $101 billion. Berkshire's tax contributions over the years would eclipse the yearly general fund budgets of states like Pennsylvania, Illinois, or Ohio. Texas, one of the largest economies in the world, has $250 billion in yearly tax revenue.
In 2024 alone, Berkshire paid $26.8 billion in federal income taxes, accounting for roughly 5% of all corporate income tax collected in the U.S. — a figure surpassing even the largest technology firms with trillion-dollar market capitalizations. This historic payment demonstrates the outsized role Berkshire plays not just in the corporate world, but in supporting the nation's fiscal health. Buffett called the sum a 'record-shattering payment.'
Buffett said of his company's tax bill last year that 'if Berkshire had sent the Treasury a $1 million check every 20 minutes throughout all of 2024 – visualize 366 days and nights because 2024 was a leap year – we still would have owed the federal government a significant sum at yearend.' This showcases the staggering sum of money Berkshire paid out to the U.S. government.
Buffett has repeatedly urged policymakers to use these funds wisely, advocating for investments that 'take care of the many who, through no fault of their own, get the short straws in life.' He has also warned that maintaining a stable currency and financial system requires 'wisdom and vigilance' from government leaders.
Berkshire's tax legacy is rooted in its unique approach: the company has paid only one cash dividend since 1965, instead reinvesting profits to fuel growth and, in turn, generate ever-larger tax payments. This model, endorsed by shareholders for decades, has allowed Berkshire to transform from a tax-avoiding relic into a pillar of America's fiscal foundation.
As debates continue over corporate taxation and government spending, Berkshire Hathaway's $101 billion contribution stands as a powerful example of how sustained business success can translate into tangible benefits for society at large.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com