They always want it both ways!

[kcjenkins]

Best of the Web Today - November 6, 2007

By JAMES TARANTO

'Berkshire Has Protested'

Yesterday we noted that Warren Buffett, chairman of Berkshire Hathaway, was complaining that he doesn't pay enough in taxes. We noted that this is by choice: He could make a donation to the Treasury if he wanted; and he has taken steps to shield his assets from the death tax.

It turns out Berkshire Hathaway isn't eager to maximize its tax burden either. This is from the company's 10-Q, a quarterly earnings report to the Securities and Exchange Commission (page 8):

Berkshire and its subsidiaries' income tax returns are continuously under audit by Federal and various state, local and foreign taxing authorities. Berkshire's consolidated Federal income tax return liabilities have been settled with the Internal Revenue Service ("IRS") through 1998. The IRS has completed its audits of the 1999 through 2004 tax returns and has proposed adjustments to increase Berkshire's tax liabilities which Berkshire has protested. The examinations are in the IRS' appeals process. The unsettled issues primarily relate to the timing of deductions for unpaid losses and loss adjustment expenses and other liabilities of property and casualty insurance subsidiaries.

Now of course we can't really criticize Berkshire for trying to minimize its tax liability. Its executives, after all, have an obligation to their shareholders. But it does make Buffett look all the more silly when he complains taxes are too low while shielding his personal fortune from Uncle Sam.

[JohnH]

And to think I was so crass as to suggest that he (and others like him) might be nothing more than a publicity-seeking windbag unwilling to back up his words with actual deeds. Should I be ashamed of myself for suggesting such a thing?

[taxxcpa]

And to think I was so crass as to suggest that he (and others like him) might be nothing more than a publicity-seeking windbag unwilling to back up his words with actual deeds. Should I be ashamed of myself for suggesting such a thing?

I believe that Buffett may believe in what he says from a philosophical point of view. I can see why someone might believe that everyone should pay more taxes, but unless it applies to everyone they do not think they should pay more than their share under the present laws.

In my opinion, everyone should pay LESS tax, but I do not think I should start the ball rolling by paying less than the present laws require me to pay.

[JohnH]

The difference between the two, in my opinion, is significant. I also agree that everyone should pay less tax, but the only thing I can do about it is advocate for changes. There is no mechanism for me to pay less tax no matter how sincerely I believe it should be so.

On the other hand, if I sincerely believe that I'm not personally paying enough tax, there is a mechanism for me to assuage my guilt. It's in place specifically for people who hold such opinions and actually have the courage to act on their stated convictions. So if I'm willing to publicly complain that I'm not paying enough tax, I should have enough character to take advantage of the opportunity to take demonstrable action. Maybe even to set an example in the hopes that others of like minds will follow - now there's a novel idea. Otherwise I'm just posturing and strutting for the media attention it will get me without any real intention of doing anything remotely constructive about the "problem".