Warren Buffett Outclasses The Trumpeter …

buffett-2I have always been impressed by Warren Buffett.  Generally, I find wealthy people to be narcissistic, boorish snobs … not that I have known all that many wealthy people.  But Buffett always seemed different, more down-to-earth.  And, while I did not know very much about him, I was vaguely aware that he was, in addition to being wealthy, quite a philanthropist.  Let us look at just a few pertinent facts about Mr. Buffett before getting into his role in today’s post:

  • Named 3rd wealthiest person in the world by Forbes Magazine in 2015
  • Chairman, CEO and largest shareholder of Berkshire Hathaway, a multi-national conglomerate that wholly owns GEICO, BNSF, Lubrizol, Dairy Queen, Fruit of the Loom, Helzberg Diamonds, , and also owns 26% of the Kraft Heinz Company, to name but a few
  • Is noted for his adherence to value investing and for his personal frugality despite his immense wealth
  • His children will not inherit a significant proportion of his wealth; he announced a plan to give 83% of his wealth to the Bill & Melinda Gates Foundation

Now why is he on my radar today, you ask?  During Sunday night’s presidential debate, when Donald Trump was being questioned by Anderson Cooper about his refusal to release his tax returns, he admitted that he had used a number of tax ‘loopholes’, including the loss carry-forward provision, to avoid paying federal income taxes for many years.  He followed this admission with “And so did Warren Buffett and so did George Soros and so did many of the other people that Hillary is getting money from. Warren Buffett took a massive deduction.”

The following morning, Mr. Buffett released the following letter:

1040-2Some Tax Facts for Donald Trump

Answering a question last night about his $916 million income tax loss carryforward in 1995, Donald Trump stated that “Warren Buffett took a massive deduction.” Mr. Trump says he knows more about taxes than any other human. He has not seen my income tax returns. But I am happy to give him the facts.

My 2015 return shows adjusted gross income of $11,563,931. My deductions totaled $5,477,694, of which allowable charitable contributions were $3,469,179. All but $36,037 of the remainder was for state income taxes.

The total charitable contributions I made during the year were $2,858,057,970, of which more than $2.85 billion were not taken as deductions and never will be. Tax law properly limits charitable deductions.

My federal income tax for the year was $1,845,557. Returns for previous years are of a similar nature in respect to contributions, deductions and tax rates.

I have paid federal income tax every year since 1944, when I was 13. (Though, being a slow starter, I owed only $7 in tax that year.) I have copies of all 72 of my returns and none uses a carryforward.

Finally, I have been audited by the IRS multiple times and am currently being audited. I have no problem in releasing my tax information while under audit. Neither would Mr. Trump – at least he would have no legal problem.

Contacts

Warren E. Buffett, 402-346-1400

Omaha, Nebraska

buffett

Mr. Buffett has class.  This man donated nearly $2.6 billion to charitable causes last year alone!  AND he paid federal income taxes!  This, folks, is the supreme antithesis of Donald Trump.  Warren Buffet is the man who should be running for President of the United States!  He is a Democrat and is supporting Hillary Clinton, but frankly, even if he ran on the Republican ticket I would probably vote for him.  In the words of one commenter, “Warren Buffett does business as an honest man. Trump is not familiar with the word honest.”  I think that sums it up nicely.

Sadly, Warren Buffett is not the one running for president, Donald Trump is.  And Trump is not so transparent, not so forthcoming as Mr. Buffett. While I have no doubt that Mr. Buffett has legally used the tax law to his advantage whenever possible, it appears that there was no subterfuge, as there is with Trump.  While Mr. Buffett was giving $2.85+ billion, Donald Trump has not even contributed to his own foundation since 2008, and that was a lowly $30,000.  He is also currently under investigation for a number of irregularities:

  • Spent more than a quarter-million dollars from his charitable foundation to settle lawsuits that involved his for-profit businesses
  • Used $5,000 from the foundation to buy advertisements touting his chain of hotels
  • Spent $10,000 of the foundation’s money on a portrait of himself bought at a charity fundraiser in 2014
  • Used $20,000 from the Trump Foundation to buy a different, six-foot-tall portrait in 2007
  • Gave $25,000 to a political group supporting Florida Attorney General Pam Bondi. That gift was made about the same time that Bondi’s office was considering whether to investigate fraud allegations against Trump University. It didn’t.
  • Spent $12,000 of the foundation’s money to buy a football helmet signed by then-NFL quarterback Tim Tebow in 2012

And the list goes on.  The most recent development surrounding the Trump Foundation, however, is that it has never obtained the certification that New York requires before charities can solicit money from the public.  As a result, if New York Attorney General Eric Schneiderman finds that Trump’s foundation raised money in violation of the law, he could order the charity to stop raising money immediately. With a court’s permission, Schneiderman could also force Trump to return money that his foundation has already raised.

Add to the above irregularities the fact that Trump is still facing lawsuits over Trump University that will go to trial beginning next month, and we can see that this presidential wanna-be is a walking liability! One question that comes to mind:  If Trump is not beneath using his ‘charitable’ foundation’s money for his own personal use, would he think twice before using our tax dollars to pay his legal fees, or shore up his businesses?  Perhaps buy Melania a fur coat for Christmas?  Where, if anywhere, does he draw the line?  Think about it.

17 thoughts on “Warren Buffett Outclasses The Trumpeter …

  1. Dear Jill and friends,

    Mr. Buffett has nothing to hide, whereas, Mr. Trump does. At this point most peoples have figured out that he probably is not as wealthy as he claims, that he is miserly in donating to charity, and that he pays -0- in federal income taxes. The concern is what we can’t figure out, like he may be hiding some shady business deals, especially with foreign entities.

    Ciao, Gronda

    Liked by 1 person

    • I read an article in Forbes a few months back that said his wealth falls far short of what he claims. Of course, to most of us even a measly million would be a lot, but to people with gold fixtures in their bathrooms, perhaps not so much. And you know what? I am happier just the way I am than I would be living in such extravagance. But back on topic … yes, I am certain he has many shady, underhanded deals that we are not aware of. Likely the ones we ARE aware of are but the tip of the iceberg!

      Liked by 1 person

  2. Relevant post. Part of HRC’s tax plans is to close what Buffett described as a loophole that favors him, as opposed to Trump’s plan which benefits the wealthier folks more than everyone else.

    What’s more the Clinton Foundation helps with global healthcare, among other things and has an A rating from Charity Watch. And, while there is a correlation between meetings with funders while she was Sec of State, when your are trying to solve global healthcare problems, that seems to attract money and time from leaders around the world. My point is it would have been a disservice to exclude meeting with them, as they are a key part of the global community.

    One more comment on Clinton, although I know this about Trump. A reporter said she became more of a Clinton fan after reading her emails. Why? She said this woman is extremely efficient in maximizing utility with her trips. So, when she went to an area, she would make sure she met with multiple people, which may included global leaders interested in helping solve global healthcare issues.

    Nice work, Keith

    Liked by 2 people

    • I would love to see a full accounting of inflows and outflows for Trump’s foundation since its inception. Of course, I would love to see his tax returns, too. Interesting comment by that reporter … she is obviously more astute and not looking for a conspiracy around every corner than many would be. Thanks for the compliment, Keith!

      Liked by 1 person

      • It should be noted the man who says he will put Clinton in jail has four court dates after the election where he must attend and not just send his attorneys (it is hard for him to attend all of the lawsuits he is involved with at 1 1/2 per week). He has three class action lawsuits for Trump University and one for alleged rape of a thirteen year old girl. And, as you note his Trump Foundation is being investigated for self-dealing and is not registered in New York as a Foundation and may not be in other states.

        Liked by 1 person

I would like to hear your opinion, so please comment if you feel so inclined.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s