On Monday (and before in 2010), the HomaFiles said:
I am serious about eliminating the estate deduction for charitable gifts.
That would get Warren Buffett whining another tune.
You see, he’s reported to be bequeathing most of his estate to his buddy & fellow fat-cat Bill Gates’ foundation.
Let’s see, he ducks a lot of estate taxes, just by channeling money to his mega-rich buddy.
Sounds like a loophole to me.
Mr. Buffett: why not pay your fair share and then ship after-tax dollars to your friend, Bill.
Today (2 days after the latest HF post on the subject), the WSJ jumped on the bus: hopped on issue:
For billionaires like Mr. Buffett, the single most important deduction in the tax code is for charitable giving. Middle-class earners can’t give nearly as much money away to reduce their overall tax burden. Yet we don’t hear Mr. Buffett calling for the elimination of that deduction in the name of fairness.
Mr. Buffett has also already sheltered the bulk of his fortune from federal taxes by putting them into a foundation that will give the money away. That’s an act of generosity, but if the government’s purposes are so vital, why doesn’t he simply give the money to the IRS?
Rebecca Quick of CNBC put that question to Mr. Buffett in 2007. His answer: “Well, that’s a choice and it’s an option . . . If I had to give it to a single individual, or make some young Buffett a multibillionaire, or give it to the government, I’d absolutely give it to the government. I think that on balance the Gates Foundation, my daughter’s foundation, my two sons’ foundations will do a better job with lower administrative costs and better selection of beneficiaries than the government.”
Mr. Buffett is no doubt right about the relative efficiency of private donors, but should billionaire philanthropists get such a large tax preference? Another case of fairness?
Coincidence?
Or, is the WSJ peeking at the HomaFiles?
The Homa Files 