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Generic Confusion

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Wednesday, December 08, 2010

Warren Buffett supports the estate tax

Why does America's second richest man support the estate tax? Doesn't it hurt people like him?

Not really, considering it helped him become the second richest man in America.

What do these companies have in common?
Dairy Queen, Jordan’s, Justin Industries, Star Furniture, Borsheim, Ben Bridge Jewelers, U.S. Liability, NetJets, R.C. Wiley, Flight Safety and Nebraska Furniture Mart.

As Dick Patton reveals in an article in Human Events, these are all companies bought by Berkshire Hathaway when their family owners were forced to sell to settle their estate tax bill.

In addition, Buffett's life insurance companies sell survivorship life insurance, which is primarily sold to pay estate taxes and transfer some wealth into a form that can be transferred to heirs without being subject to the tax.