Uncle Warren Unhappy With WSJ Claims He Pays Only 10.5% Tax On BofA Dividend; He Really Is Paying A Whopping 14.175%

Tyler Durden's picture

Kindly-looking, ukulele strumming, no tax paying, birthday celebrating, grandfather figure Warrenn Buffett is angry...

Omaha, NE (NYSE: BRK.A; BRK.B)—An editorial in today’s Wall Street Journal says that “Berkshire Hathaway will enjoy an effective tax rate of 10.5% on the $300 million in dividends it will receive each year from Bank of America.” That statement is incorrect.


Virtually all of the stocks that Berkshire owns are held in its property-casualty subsidiaries, and that will be the case with the Bank of America preferred.


The tax treatment for dividends paid by U.S. corporations to property-casualty insurance companies was materially changed by a law passed in 1986. The changes were described in detail in the chairman’s letter included in Berkshire’s 1986 annual report.


A minor change in rate was made in 1993. Since that time dividends that insurers receive from U.S. companies incur an effective tax rate of 14.175%. For Berkshire, that rate will apply to dividends it receives from Bank of America.

Well... glad we cleared that up.

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DK Delta's picture

Warren Buffett is a sickening hipocrite and I really don't like to hate on people.

BaBaBouy's picture


A Perfect Mirror Of American UpperClass Unbounded Greed ...

66Sexy's picture

Blood sucking Warren Buffet expecting a profit from banker bailouts. He pays alot less than that, he is GETTING taxpayer money. I hope they fukc him over. BAC will bring all these bastards down with it, once they realize there aint enough taxpayer revenue to bail out BAC, let alone anyone else... 

Wow, wouldnt that be a bitch if everyone took out huge loans, bought physical gold, defaulted those loans, shorted banks, hoarded guns and ammo, and stopped paying taxes?

Do your part to save america.

BaBaBouy's picture


Drive GOLD to $35,000 and bring Bluffet Et AL Keynesian Elitists All down ...



TheTmfreak's picture

Well if we only raised taxes on the rich then this wouldn't be a problem. Oh wait... Warren Buffet thinks they already pay enough taxes as it is?



spiral_eyes's picture

I am very happy to see Warren Buffett being dragged into the mud. He's about to lose 5 billion because he wanted Becky Quick's ass. I mean I want Becky Quick's ass, but I'm not going to pay $5 billion for it.


James's picture

When Warrens back-taxes issue surfaced yesterday story went on to state that his Geico Insurance Co. iis in fact an acronym for Government. Employee. Insurance. Company.

The "Oracle" is in fact nothing more than a evil stooge for government to transfer citizens wealth back to them.

To me, the true measure of a man is decided by the direct correlation of the amount of people who want to piss on his grave  at his death.

Ergo's picture

Yep.  Bloodsuckers.  A low tax rate for the super-rich, and a high tax rate for the working serfs. 

And Warren gets a phone call with the President first, just to make sure his investment is protected by taxpayers.  It's easy to make money like that. 

And Warren thinks serfs are silly for owning gold & silver.  Not everyone can buy companies, or invest on preferred terms with banks for low taxes and a guarantee from the President. - Go ahead and own common stock in BoA, Warren.  I double dog dare you.

ATG's picture

This last decade the silver WEB sold outperformed BRK/A 17x, and the AAPL WEB did not buy outperformed BRK/A 79x



toady's picture

Doing all that except the loan/default.

EscapeKey's picture

Just another crony capitalist, though he didn't used to be.

topcallingtroll's picture

that is also true.

Power corrupts.  Absolute power corrupts absolutely.  This is why we must have limited government and enforce individual liberty over central planning.

Whatta's picture

can we say "fuck warren" here?

just curious.

DCFusor's picture

Yeah, we could, but the beginners need to learn why.  It's for their benefit.

James's picture

Bullshit EscapeKey.

It's only coming out now Warrens true colors.

He's always been a piece of shit.

You were bamboozled by, once again, MSM

He was always portrayed as a latter day "Midas"

And we foolishly believed that.


slaughterer's picture

I miss the good old days when foreign investors could personally meet Warren'n'Charlie at a special session of the Annual Shareholder Conference for Berkshire Hathaway, before heading off to Piccolo Pete's to discuss foreign investment opportunities with good 'ol' Warren over shakes and burgers.  Those were fine occasions.  Now Warren has to sink his money into Bank of America for a lousy $300,000,000 dividend--it is a sign of the times that Warren is either a.) out of ideas or b.) the global economy has no better opportunities for him to make money.   When are Geithner/Bernanke/Obama going to put the ship back on course for Warren 'n' Charlie?   Or will they just have to "suck it up" until they retire and go to the old folks home?   

EscapeKey's picture

When are Geithner/Bernanke/Obama going to put the ship back on course for Warren 'n' Charlie?

It IS on course for Warren and Charlie. They get to front run major deals/bailouts, and the risk is handed to the taxpayer/thrifty middle class saver.

topcallingtroll's picture


Because that is exactly what that bloated ugly scumbag did with BAC

Don Birnam's picture

Tyler -- heading addendum: "The $ 40,000-a-plate-Obama-fundraiser-just-before-the-Bank-of-America-'We do-not-need-to-raise-capital'-capital-injecting-rub-a-dub-dubbing-does-his-dealmaking-in the tub" Warren E. Buffett.

gabeh73's picture

THis hippocrite oligarch motherfucker pays bribes to the government to explicitly excuse his company from taxes while using his media connections to lobby for higher taxes on "rich" families making 150k/year. 7th ring of hell reserved for scumbags like this.

He also knows better, his dad knew what the federal reserve and our monetary system were designed to do(rape the middle classes and the nouveu rich who hope to challenge the oligarchs one day).

THe education system was designed to dumb down the lower 90% so as they become programmed useful idiots who are dependent on the government and the oligarch. The combination of the oligarch and the dumbed down masses were hoped to "build a moat" around the oligarch. This is Warren Buffets plan when he looks at investments...can he get the government to build a moat for his busines to keep out competition.


Warren u are going down.

Greater Fool's picture

Where do I sign up to have 5bp deposited in my savings account? I mean, who would really miss it?

Gandalf6900's picture

Too much hate around here people....but does he really pay taxes!!!???

NotApplicable's picture

There is no such thing where WB is concerned. The man is a master criminal, and has done his utmost to destroy the economy, freedom and social stability by aiding and abetting the racket run by the other criminals in DC.

I can only hope he lives long enough to have to face up to it publicly. Him and his ilk are the most anti-human force on the planet.

66Sexy's picture

NAW, I'm cool with him just dropping dead and not taking it with him...

NotApplicable's picture

Except that 'it' will still oppress us via all of the various "philanthropies" he funds. Just like with Cecil Rhodes, death will not hinder his ability to destroy, but rather it will allow all of his energies to form a single point of focus.

tarsubil's picture

Indeed, if you strike him down, he shall become more powerful than you could possibly imagine.

sun tzu's picture

Does it really matter if he pays taxes? If he paid 50%, it wouldn't affect him. If we had to pay 50%, we would be starving. That's why he says taxes should be higher. Pure evil

zorba THE GREEK's picture

Is Warren Buffet Kramer"s father?

Id fight Gandhi's picture

They both lose money for their followers.

rgd's picture

bubble bath tarrifs, bitchez!

Gandalf6900's picture

nope he's luke skywalkers uncle

The Real Fake Economy's picture

so rumors in the MSM are starting to spread that Obama may finally get around to doing something about all of those underwater mortgages and provide relief, by forcing bank to re-calculate the loans and write down some of them for losses.  anyone else think this is a bunch of bologna?  anyway, is this the fed's/treasury new version of stimulus?  they've tried helping the banks in every which way conceivable all to no avail, so perhaps by helping some of main street, the economy might see a boost?  i don't know that even this will work.  

Missiondweller's picture

Its exactly what I would expect from a marxist hell bent on "social justice". I'm not sure how I see how this would help the banks though. It would be good for banks to get it off their books but who takes the loss? The taxpayer? banks would go bust if they had to take the loss themselves. Just look at BAC.

EscapeKey's picture

Yeah, sure, no doubt it will involve a 0.001% relief on mortgages, twice the maturity at slightly lower monthly rates, all backed "by the taxpayer" (and inflation theft), thereby allowing the banks to sell their phony mark-to-unicorn MBS'es to the... taxpayer - at full price.

Isn't it awesome how the class which will bear the brunt of the bailout, will also bear the future risk? By awesome, I meant for the kleptocratic elite.

pods's picture

And all of those refis will of couse clear up the clouded note, thus giving the banks the leverage they need to foreclose when the time comes.

So banks will pay a little, get 10-20 more years of interest, and have all those pesky impeded mortgages go away.

That is why WF wanted me to refi so damn much, as they know they severed the security interest in my house.


Leopold B. Scotch's picture

I just can't wait until the government owns all the housing stock and rents it back to us at a fair price.

pods's picture

There is a school of thought that this in fact is already the case.  


NotApplicable's picture

Last I heard it was only 96%, so they've still got some work to do.

DCFusor's picture

That's only if you think rising property taxes are "reasonable" in times when everyone else has to belt-tighten.  Even those of us who aren't in that debt game and just own outright.

So, a bunch of people get po'd and go down to the county courthouse in my tiny county, to protest that though their valuations are all down, their taxes aren't, and demand a re assessment.  County says fine -- reassess, now we just raise the rates, FU, citizens.

At what point do we realize we outnumber them.  It's like the plane hijack situation.  Yeah, the first guy in the rush to disarm the hijacker probably gets it, but if we all do the rush, we get the bad guy for certain.  Ahh, the governments insure we don't and can't trust one another in the clutch, so we wisely (!) choose not to try and just take it.  I get it.

James's picture

I'm of that school pods.

OpenEyes's picture

I believe that the rumors are Barry will propose that all homeowners can re-finance at today's lower rates (particularly those who are underwater or would not otherwise qualify to re-fi).  This is NOT for the benifit of the home owners, it's for the banksters!  This will allow them to continue to carry those mortgages on their balance sheets as performing assets.  For the homeowner, it's more like "hey, we'll give you more time to pay us back for the inflated mortgage that you have on the house that is losing xx% per year in equity"

gabeh73's picture

you r correct. The banks lose when people squat for 8 months...sell the copper and appliances...stop maintenence and then leave the keys for the bankers....take all the savings and put it into gold and silver.


The bankers will try to stop it with various schemes designed to look average joes.

A Man without Qualities's picture

They are trying to do something, but it's actually a cover to fix the MERS mess.  

pods's picture

Bingo.  This is the reason.  

(sorry if I like jumped you above, escapekey's argument made me think of it)


NotApplicable's picture

Someone who never apologizes.

gmrpeabody's picture

oops..., sorry. I was gonna post that, but you beat me to it.

Poetic injustice's picture

No, he deferrs them to 10 years forward. After 10 years...