http://buzz.money.cnn.com/2014/08/26/buffett-taxes-burger-king/
In this article presented by CNN Money, it discusses Burger King's recent acquisition of Canadian coffee chain Tim Horton's, and how Warren Buffett's Berkshire Hathaway's involvement may be hypocritical to his own principles of tax inversion.
Buffett has been quoted saying that there should be a revised tax code for those who make millions of dollars annually, which would result in them paying a higher tax rate, which would alleviate the tax burden on the middle class. By relieving some of the tax on middle class America, it would allow for growth and the ability to financially stimulate the economy.
In Warren Buffett's case, his recent investment in Burger King, in order to help with the acquisition of Tim Horton's, has raised a lot of concern on whether or not his investment is really a way to escape corporate tax rates in America. Those who have inside knowledge on the investment claim that it actually shows no beneficiary for Berkshire Hathaway from a tax standpoint, because his dividend yield will be coming from a foreign corporation, ultimately causing him to have to pay a higher tax rate. Despite what seems to not serve as a tax beneficiary, it has caused a great deal of animosity with Obama because of Buffett's claim on how corporations that take advantage of this tax loophole, are going about it legally, despite the poor image it gives off.
This presents the question of whether or not Warren Buffett is saying that it is OK for corporations to receive unpopular tax breaks.
It's about time we call these corporate persons out as being unpatriotic tax dodgers. Buffet seems to play the media expertly in a way that he is trying to make it seem like he is helping the economy when he is escaping corporate taxes.
ReplyDeleteIt would be very uncharacteristic of Warren Buffet to try to find a tax loop hole by acquiring Berkshire Hathaway. Maybe if Buffet was struggling financially or was really that greedy it would make sense, but those are not the case. Buffet was the one who proposed a higher tax for millionaires and people richer than that, including himself. I believe that all the facts on this case have not been presented yet, and Buffet will in fact have to pay more in taxes as a result. It is not fair for individuals or companies to receive tax breaks because they have found some sort of fault in the tax system. If anyone is deserving of tax reductions/breaks it would be the middle class, not multimillionaire dollar companies.
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