Warren’s children will not be inheriting Berkshire Hathaway. Instead, Buffett will establish multi-billion dollar charitable foundations in their names. So they will not pay any taxes on the wealth. But they are not getting the money, you say. In fact they are getting all the benefits of the money without paying the taxes.
For instance, does anyone imagine that Peter Buffett’s children will have a hard time getting into Harvard? with Peter in charge of $1B in charity capital? How about getting a job with a top law firm? or symphony? or art museum? I’m sure many of my readers know more stories of charity scions who have made it surprisingly far on their dad’s impending contributions.
A gifted entrepreneur may gather wealth to buy desirable objects, attract a high-grade mate etc. But at a certain point, this person has all the money he can possibly spend. He may become socially superior and begin to look with fear at others who can do what he did — make money and get to the top of the social scale.
Warren Buffett will support the inheritance tax on the rich even though he will never pay a cent of it. However it will break up the fortunes of those in the upper-middle class who present a social threat to Buffett or his children.
Finally NPR has no business running a puffball piece if they don’t know how this works. Unless they are expecting a cut from Peter Buffett’s foundation of the future.
is someone I can’t get along with.
Bob Dean.
She was not a billionaire, yet manipulated the system to avoid the “death tax.” It’s going to be interesting to see how Ted’s estate is handled!