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Saturday, September 11, 2010

Warren Buffet Likes Estate Taxes

Warren Buffet is an outspoken advocate for estate taxes. A pro-State troll says "Isn't that nice! He's advocating that insiders give up their wealth."

Insiders use charities and trusts to dodge taxes. Warren Buffet's charity helps him avoid estate taxes. His children will pay themselves a salary, when they administer the trust. By donating their wealth to charity, billionaires avoid taxes while simultaneously controlling their wealth. Many "charities" actually spend their money promoting pro-State propaganda.

Who is hurt most by estate taxes? Small business owners are hurt the most. Typically, a small family-owned business valued at $10M-$200M is forced to sell, to pay the estate tax bill.

Who specializes in buying small family-owned businesses? Warren Buffet and Berkshire Hathaway buy these businesses! It's in Warren Buffet's rational self-interest to advocate for estate taxes. It's an opportunity for him to buy businesses in an estate tax foreclosure sale.

Estate taxes force the sale of businesses from non-insiders to insiders. The banksters use their money-printing power to buy the business. The banksters print the money that pays the estate tax bill.

When the banksters finance an estate tax sale, they literally print new money to fund the purchase. The banksters then take possession of real assets. Via State restriction of the market, it's hard to start new small businesses.

What about insiders? Don't they pay estate taxes?

Consider Brian L. Roberts, the chairman and CEO of Comcast. He inherited control of Comcast from his father. He owns special supervoting shares of Comcast. These special shares give him control, even though Comcast is a public corporation.

These shares only represent a tiny equity stake in Comcast. For estate tax purposes, these shares are only valued based on the equity stake they represent, even though these shares give Brian L. Roberts control of Comcast. It's like Brian L. Roberts is the full owner of Comcast, but he only paid estate tax based on the tiny slice of equity those shares represent.

Via option grants and equity grants, Brian L. Roberts pays himself and his friends a nice salary. In this manner, Brian L. Roberts inherited his business from his father tax-free. In the present, State insiders pass their State-backed power on to their children, more reliably than kings could 500 years ago.

Most mainstream media corporations have special supervoting shares. This gives insiders control, even though it's a public company. Mainstream media corporations are a key component of the State propaganda engine.

A small business owner works all his life to build his business. He pays the income tax and inflation tax as his business grows. When he dies, the estate tax forces him to sell. The estate tax enables the banksters to take possession of real assets.

Warren Buffet is a bankster, although he less corrupt than most. Like all big financial institutions, Berkshire Hathaway receives huge direct and indirect State subsidies.

Warren Buffet advocates for the estate tax. That isn't because he's such a swell guy. The estate tax gives him the opportunity to purchase family-owned business worth $100M-$200M. Insiders use trusts and other tricks to protect their assets.

Warren Buffet received huge direct and indirect State subsidies. Even if Warren Buffet paid full estate tax on his wealth, he still was an overall negative lifetime taxpayer. The value of State-granted perks is worth more than the taxes Warren Buffet paid.

State-backed power can be reliably passed from one generation to another. For example, Bush was President primarily because his father was President. His entire family has been looting via the State for a long time.

Taxes don't hurt State insiders. The State perks they receive are worth more than the taxes they pay. State insiders pay a negative effective taxation rate. Taxes hurt productive workers. This is the opposite of what most slaves are brainwashed to believe.


Scott said...

Wow, great insight. I knew Buffett's "tax me more" was a scam, but I never saw this particular angle of the scheme.

Buffett is a real low life that has profited for years selling crappy fire traps to desperate and foolish poor people.

Look into the economics of trailers. They depreciate so the owner can never build equity, and they prevent the poor from being able to build up a little bit to give their kids a head start on life to start a business, go to college, or own their own home.

Anonymous said...

Another one you don't hear much about is the Williamson Act in California. Large land owners can avoid high taxes via a contract with the state, if the land is used for agricultural or conservation purposes. Later the owner can withdraw from the program and build subdivisions, etc. This is a major savings, and has the additional effect of reducing the productivity of useful land -- I think the less productive the land is, the lower the tax. If conservation/open space is the purported, there are better and more fair ways to do this.

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