Latest news with #BuffettRule
Yahoo
11-05-2025
- Business
- Yahoo
Opinion - We should listen to Warren Buffett — and learn from him
Warren Buffett announced earlier this month that he would retire as CEO of Berkshire Hathaway by the end of the year. The multinational conglomerate, which he acquired in 1965 when it was a textile mill, became the first non-technology company to reach a $1 trillion market cap. At age 94, Buffett is the fifth-wealthiest person in the world. We can learn a lot a lot about economics, politics, philanthropy, taxes and tariffs from 'the Oracle of Omaha.' Born in 1930, Buffett is an American success story. He began making money selling chewing gum, old golf balls, stamps, calendars, newspapers and magazines door-to-door before he was a teenager. At age 14, he filed his first tax return, taking a $35 deduction for his bicycle. By the 1950s, he was acquiring a reputation as one of the nation's premier 'value investors.' Buffett attributes his wealth to living in the U.S., working within a system of free-market capitalism, plus 'some lucky genes and compound interest.' Being male and white, he recognizes, 'also removed huge obstacles that a majority of Americans' in his generation faced. Buffett, who became a billionaire in 1985, has always lived modestly. He lives in the same five-bedroom home in Omaha he purchased in 1958 for $31,500. Most mornings, he eats breakfast at McDonald's on his way to work; he is addicted to Chicken McNuggets. Buffett buys a new car 'very infrequently.' He did not trade in his flip phone for a smart phone until 2020. 'I don't need fancy clothes. I don't need fancy food,' he says. 'I have everything I need to have and I don't need any more because it doesn't make any difference after a point.' Buffett made an exception about 20 years ago, he acknowledges, when he splurged on a private jet to make travel easier. Revealing that between 2014 and 2018 his own effective tax rate was about 0.1 percent, Buffett insists that wealthy Americans should not pay a smaller percentage of their income than their far-less-affluent employees. His proposal of a 30 percent minimum tax on people who make more than $1 million each year has been dubbed 'the Buffett Rule.' And he is proud of Berkshire Hathaway's $26.8 billion tax payment in 2024 — the largest in U.S. history. If America's 800 biggest corporations paid their 'fair' share, Buffett claims (no doubt with intentional hyperbole), federal taxes for most Americans could be near zero. A just tax code would reduce the burden on middle-class and working-class Americans, provide resources for public services and infrastructure and help pay down the national debt. Equally important, according to Buffett, government should 'take care of the many who, for no fault of their own, get the short straws on life. They deserve better.' In 2006, Buffett made a commitment to contribute to five charities each year, designating the vast majority of the money to the Bill and Melinda Gates Foundation Trust. His donations in 2024 totaled $5.3 billion. Buffett's giving pledge specifies that 99 percent of his wealth will go to philanthropy during his life and at his death. He has also urged rich Americans to allocate at least 50 percent of their wealth to charitable organizations. Recently, Buffett addressed global trade and tariffs. In March, he emphasized that over time, tariffs 'are a tax on goods. I mean the Tooth Fairy doesn't pay them. And then what? You always have to ask that question in economics. You always say, 'And then what?'' The 'then what,' he implied, was in essence a consumption tax that would fall disproportionately on middle- and working-class Americans. In May, Buffett said that it wasn't 'a good idea to design a world where a few countries say, 'ha, ha, ha, we've won.'' In a clear reference to the tariff wars started by the Trump administration, he deemed it 'a big mistake' to 'have 7.5 billion people who don't like you very well and you have 300 million who are crowing about how they have done.' 'The more prosperous the world becomes,' Buffett declared, 'the more prosperous we'll become — and the safer we'll feel and our children will feel some day.' Midwestern common sense delivered in plain spoken English. And, as with so many other recommendations Buffett has made, Americans across the ideological spectrum may well say, 'from his lips to God's ears.' Glenn C. Altschuler is the Thomas and Dorothy Litwin Emeritus Professor of American Studies at Cornell University. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
11-05-2025
- Business
- The Hill
We should listen to Warren Buffett — and learn from him
Warren Buffett announced earlier this month that he would retire as CEO of Berkshire Hathaway by the end of the year. The multinational conglomerate, which he acquired in 1965 when it was a textile mill, became the first non-technology company to reach a $1 trillion market cap. At age 94, Buffett is the fifth-wealthiest person in the world. We can learn a lot a lot about economics, politics, philanthropy, taxes and tariffs from 'the Oracle of Omaha.' Born in 1930, Buffett is an American success story. He began making money selling chewing gum, old golf balls, stamps, calendars, newspapers and magazines door-to-door before he was a teenager. At age 14, he filed his first tax return, taking a $35 deduction for his bicycle. By the 1950s, he was acquiring a reputation as one of the nation's premier 'value investors.' Buffett attributes his wealth to living in the U.S., working within a system of free-market capitalism, plus 'some lucky genes and compound interest.' Being male and white, he recognizes, 'also removed huge obstacles that a majority of Americans' in his generation faced. Buffett, who became a billionaire in 1985, has always lived modestly. He lives in the same five-bedroom home in Omaha he purchased in 1958 for $31,500. Most mornings, he eats breakfast at McDonald's on his way to work; he is addicted to Chicken McNuggets. Buffett buys a new car 'very infrequently.' He did not trade in his flip phone for a smart phone until 2020. 'I don't need fancy clothes. I don't need fancy food,' he says. 'I have everything I need to have and I don't need any more because it doesn't make any difference after a point.' Buffett made an exception about 20 years ago, he acknowledges, when he splurged on a private jet to make travel easier. Revealing that between 2014 and 2018 his own effective tax rate was about 0.1 percent, Buffett insists that wealthy Americans should not pay a smaller percentage of their income than their far-less-affluent employees. His proposal of a 30 percent minimum tax on people who make more than $1 million each year has been dubbed 'the Buffett Rule.' And he is proud of Berkshire Hathaway's $26.8 billion tax payment in 2024 — the largest in U.S. history. If America's 800 biggest corporations paid their 'fair' share, Buffett claims (no doubt with intentional hyperbole), federal taxes for most Americans could be near zero. A just tax code would reduce the burden on middle-class and working-class Americans, provide resources for public services and infrastructure and help pay down the national debt. Equally important, according to Buffett, government should 'take care of the many who, for no fault of their own, get the short straws on life. They deserve better.' In 2006, Buffett made a commitment to contribute to five charities each year, designating the vast majority of the money to the Bill and Melinda Gates Foundation Trust. His donations in 2024 totaled $5.3 billion. Buffett's giving pledge specifies that 99 percent of his wealth will go to philanthropy during his life and at his death. He has also urged rich Americans to allocate at least 50 percent of their wealth to charitable organizations. Recently, Buffett addressed global trade and tariffs. In March, he emphasized that over time, tariffs 'are a tax on goods. I mean the Tooth Fairy doesn't pay them. And then what? You always have to ask that question in economics. You always say, 'And then what?'' The 'then what,' he implied, was in essence a consumption tax that would fall disproportionately on middle- and working-class Americans. In May, Buffett said that it wasn't 'a good idea to design a world where a few countries say, 'ha, ha, ha, we've won.'' In a clear reference to the tariff wars started by the Trump administration, he deemed it 'a big mistake' to 'have 7.5 billion people who don't like you very well and you have 300 million who are crowing about how they have done.' 'The more prosperous the world becomes,' Buffett declared, 'the more prosperous we'll become — and the safer we'll feel and our children will feel some day.' Midwestern common sense delivered in plain spoken English. And, as with so many other recommendations Buffett has made, Americans across the ideological spectrum may well say, 'from his lips to God's ears.' Glenn C. Altschuler is the Thomas and Dorothy Litwin Emeritus Professor of American Studies at Cornell University.
Yahoo
12-03-2025
- Business
- Yahoo
Warren Buffett Said 'We Were Promised a Rising Tide Would Lift All Boats'—But Instead, It 'Lifted All Yachts' And the Rich Got Richer
Warren Buffett is a billionaire known for his frugality—still living in the same modest house he bought in 1958 and famously avoiding luxury. But what's more surprising than his lack of a yacht is his willingness to call out the people who own them. In a 2012 interview with Charlie Rose, Buffett didn't hold back on the growing wealth gap. "We were promised that a rising tide would lift all boats. A rising tide has lifted all yachts." His point? The economy may have grown, but the benefits didn't trickle down the way Americans were told they would. The ultra-wealthy got richer, while everyday workers were left treading water. And for Buffett, that's the real problem. Don't Miss: This Jeff Bezos-backed startup will allow you to . Maker of the $60,000 foldable home has three factory buildings, 600+ houses built, and big plans to solve housing — "We have not had an ounce of shared sacrifice from the very rich," he added in that same interview. In other words, billionaires keep winning, while the system does little to level the playing field. If there's one thing Buffett is, it's consistent. In 2024, he was back at it, making the same argument he's been making for over a decade: the tax system favors the ultra-wealthy, and that needs to change. At Berkshire Hathaway's (NYSE:BRK, BRK.B)) annual meeting, he pointed out that if 800 companies had paid their fair share, everyday Americans wouldn't owe a dime in federal taxes. His own company, he noted, paid over $5 billion at a 21% rate for 2023—and if Berkshire can do it, why can't others? Trending: . In an August interview with PBS NewsHour, JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon weighed in on tax policy and the national debt, offering a surprising endorsement of higher taxes on the wealthy—specifically, the Buffett Rule. "I would have a competitive national tax system, and then I would maximize growth," Dimon said, adding that some tax increases might be necessary. "You would maybe just raise taxes a little bit—like the Warren Buffett type of rule, I would do that." The Buffett Rule, first proposed during the Obama administration, is based on a simple idea: anyone earning over $1 million a year should pay a minimum effective tax rate of 30%. Not everyone is on board with the Buffett Rule. Some argue that high-income individuals already shoulder a substantial portion of federal income taxes. According to the Tax Policy Center, those making over $1 million pay an average effective tax rate of around 27% on their federal individual income taxes. Critics also point out that the Buffett Rule would impact less than a tenth of 1% of Americans and generate less than $5 billion a year, a figure they consider negligible against the backdrop of annual deficits projected to be much higher over the next decade. . Federal Reserve data shows about 93% of U.S. households' stock market wealth is held by the top 10%, with the richest 1% owning 54% of public equity markets—a record high. That means while corporate profits soar and markets hit all-time highs, the majority of Americans see little benefit. It's a dynamic that benefits those at the top. Wealthy investors don't just own more stocks—they also enjoy tax advantages, stock buybacks, and lower capital gains rates, while middle-class workers are taxed more heavily on their wages. The numbers have changed, but Buffett's argument hasn't. The top 1% continues to see their wealth grow at historic levels while middle-class workers deal with rising costs and a tax system that favors those who already have the most. Read Next: . . UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Warren Buffett Said 'We Were Promised a Rising Tide Would Lift All Boats'—But Instead, It 'Lifted All Yachts' And the Rich Got Richer originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
