by Robert Janicki
Billionaire Warren Buffet, often called the Oracle of Omaha for his
business acumen, has, once again, blown his cover as a common man of the
Midwest.
Early on, Buffet jumped on President Obama's bandwagon
to criticize those companies that relocate their headquarters outside
the United States in order to reduce their tax liability. Obama, with
Buffet right behind him, has castigated corporations for moving their
headquarters out of the Unites States and characterized them as
unpatriotic, although what they are doing is completely legal.
Bear in mind that the corporate tax rate in the U.S. is 35% and
advances to over 40% when state and local taxes are included. The 35%
U.S. rate, in comparison, is the highest corporate tax rate in the
world. Also note that those companies that move their company
headquarters out of the United States are not avoiding any corporate
taxes for their operations in the U.S.. They are simply avoiding taxes
on those profits earned outside the U.S., which they are currently
obligated to pay to the U.S. Treasury.
Fast forward to the latest Buffet hypocrisy.
"In May,
billionaire Warren Buffett blasted the very corporate “tax inversion”
schemes his firm Berkshire Hathaway is about to finance as part of
Burger King relocating its headquarters to Canada to lower its tax
burden."
Buffet is Chairman of the Board of investment goliath Berkshire
Hathaway and its largest investor. It's reported that Berkshire is
about to spend $3 billion dollars to buy a significant portion of Burger
King, which is moving to Canada, to enjoy their lower corporate tax
rate.
Someone please tell me why Warren Buffet is not a
hypocrite for supporting and profiting from a corporation seeking to
reduce its tax liability in the U. S. by moving it headquarters outside
the U.S., all the while joining President Obama in condemning such
actions?