Warren Buffet May Owe A Billion Dollars In Back Taxes

Discussion in 'Free Speech Alley' started by Sourdoughman, Oct 12, 2011.

  1. Sourdoughman

    Sourdoughman TigerFan of LSU and the Tigerman

    Joined:
    Oct 11, 2003
    Messages:
    12,326
    Likes Received:
    575
  2. red55

    red55 curmudgeon Staff Member

    Joined:
    Oct 21, 2002
    Messages:
    45,195
    Likes Received:
    8,736
    That conservative blog should be called out for really what it is . . . full of lies and deceptions and very badly written. It is full of holes.

    First of all Warren Buffet does not owe the IRA a billion dollars -- that is an out and out lie. What has been alleged by a critic is that the corporation Berkshire Hathaway owes a billion dollars to the IRS based on it's own annual report. And that is also untrue.

    Berkshire Hathaway is the 8th largest corporation in the world and has vast holdings and complicated taxes. Buffet owns 23% of its value and controls 34% of its votes. As it noted in its annual report, “Unrecognized tax benefits represent the company’s potential future obligation to the IRS and other taxing authorities. They have to be recorded in the company’s financial statements.”

    All this is, is the money that may be owed to the IRS after all of the audits are performed and a judgement made. This happens all the time to large companies and many individuals, it happened to me this year for my 2008 tax return. The IRA will question what they see as a discrepancy and then the company/taxpayer must show the IRS how they arrived at their numbers.

    I failed to report the cost basis of some stock I inherited when my Mom died and they tried to tax me $3,400 on the whole amount. After I provided the evidence of my cost basis, I took a small loss and ended up getting a $262 refund. This is what is happening with Berkshire Hathaway. They are arguing unrecognized tax benefits and have not yet reached a conclusion.

    Being a public corporation BH is required to report to shareholders in their annual report that a certain amount of their money is being held to pay a possible tax. That's all. When the issues is settled BH will either pay the money owed, or none of it, or a part of it depending on the ruling. As noted in the BH annual report.

    “We anticipate that we will resolve all adjustments proposed by the U.S. Internal Revenue Service (‘IRS’) for the 2002 through 2004 tax years at the IRS Appeals Division within the next 12 months,” the report states. “The IRS has completed its examination of our consolidated U.S. federal income tax returns for the 2005 and 2006 tax years and the proposed adjustments are currently being reviewed by the IRS Appeals Division process. The IRS is currently auditing our consolidated U.S. federal income tax returns for the 2007 through 2009 tax years.”

    The snide author of the blog disingenuously suggest that Buffet personally owes money, which is a complete lie. He then suggests that Berkshire Hathaway failed to pay a billion in taxes, which is also a lie. BH filed their returns, pay their taxes, and they are being audited for some corporate tax benefits claimed. This is something that all corporations do and the Conservatives are the ones who provide this generous corporate welfare.

    The fact that Buffet has public said the billionaires should pay more personal income tax has nothing whatsoever to do with the Berkshire Hathaway taking advantage of all legal corporate tax benefits. The BH board is obligated to all of its owners to pay all taxes owed and not one dollar more. Buffet can talk about his own income, but he can't speak for the income of all of the BH stockholders.
     
  3. MLUTiger

    MLUTiger Secular Humanist

    Joined:
    Aug 9, 2001
    Messages:
    4,606
    Likes Received:
    810
    Just so I have this correct: By using only publicly known information (not all of the relevant data, just what's publicly known) I'm supposed to believe that I am being given a complete picture of Buffet's finances?

    Are the people who read that blog really that stupid?
     
  4. SabanFan

    SabanFan The voice of reason

    Joined:
    Oct 21, 2002
    Messages:
    26,080
    Likes Received:
    1,247
    And this response is courtesy of some liberal blog.
     
  5. red55

    red55 curmudgeon Staff Member

    Joined:
    Oct 21, 2002
    Messages:
    45,195
    Likes Received:
    8,736
    Are you calling me a plagiarist? Do you you think I can't develop my own thoughts and write them? I thought you were brighter than that?

    Well, you are a liar. Google it up and show me where I plagiarized it. Or STFU.
     
  6. Sourdoughman

    Sourdoughman TigerFan of LSU and the Tigerman

    Joined:
    Oct 11, 2003
    Messages:
    12,326
    Likes Received:
    575
    Journalism is pretty much dead in this country. I can give many examples.
    The conservative sites bring us news about the left that most of the non conservative media won't cover.
    John Edwards and his mistress went unreported by most outlets, the Enquirer of all papers broke the story and covered it.

    In 2005 any news channels, outlets other than conservative ran stories about hard times with gas prices being as high as they were.

    The same can be said for the worst recession since the great depression, the truth of the matter is that this has happened under Obama.

    Then during the 2008 elections the news media followed Obama on his world tour while ignoring McCain.
    The exact opposite happened when Sarah Palin was attacked and Obama was given a pass about Rev Wright, Tony Rescoe, etc.

    This country would be far better off if it treated both sides equally, Hillary probably would have been president and we wouldn't have a racist administration in power.
    Chances are we would have more pro-government, pro-American administration in power.

    I think that when someone like Warren says the things he does he should have to disclose his financial records and all of the truth with any company he is associated with.
    Warren Buffet has also not told the truth, he is every bit as dishonest as anyone else. Those that repeat the same thing are as dishonest as Buffet also because it leaves out part of the story.
     
  7. MLUTiger

    MLUTiger Secular Humanist

    Joined:
    Aug 9, 2001
    Messages:
    4,606
    Likes Received:
    810
    Journalism isn't any more dead now than it's ever been. There is just a lot more "journalists" out there thanks to blogging, twitter, podcasts, etc.

    I fail to see where Buffet is lying, though. I'm not so naive as to think he's the only rich guy out there without some kind of motive. For a guy like him in his position to speak out about the unequal distribution of wealth in their country should at the very least cause us to question our own beliefs. He's pretty much the only Billionaire out there with that position that I'm aware of. He doesn't have a history of being a shill for any particular political party and in his circle of friends, Republicans greatly outnumber Democrats. Historically he's avoided public politics, at least to my knowledge. Also, I notice that no one else in his position is really speaking out against him. That silence is deafening if you ask me.

    That you think he's as dishonest as everyone else doesn't sit well with me at all. I don't know who "everyone else" is, but I do know that Warren Buffet refused to participate in the toxic financial assets and gambling with securities backed by subprime mortgages. It's obvious to anyone who has followed his career even from a distance he has a code of business ethics that 99% of Wall Street lacks.
     
  8. Sourdoughman

    Sourdoughman TigerFan of LSU and the Tigerman

    Joined:
    Oct 11, 2003
    Messages:
    12,326
    Likes Received:
    575
    True, there are plenty out there but I explained why I thought it was so.
    I couldn't have made it any clearer although I failed to say Objective Journalism, there is just cheerleaders on both sides.
    I have never said he was lying, I said he is dishonest because he hasn't told the whole truth about his company and the taxes that it owes or any other income the man has that he may owe.
    Well I personally question the role of government, the government is responsible for making and enforcing the laws of the land.
    Of course they don't, that would be like committing suicide. They would be a villain and accused of all kinds of things like greedy and heartless.
    We are talking politics here plain and simple, no, I don't believe most are honest when talking politics especially someone in Buffet's shoes.
    Why should he have participated in that? He already made his billions. Funny you should mention the subprime mortgages, Chris Dodd, Barney Frank, Country Wide, Fanny and Freddy.
    That makes the perfect point for me, the difference in me and most people.
    I don't just go after Wall Street like most do, I point out how government has people also, and probably 50% or more of people in government is also the problem, greed, corruption, etc. Sure Wall Street is a problem but government today is just as big of an issue.
    Go check out the Debt clock, Debt, look at Paulson, Bernanke and the Fed.
    Then you can look at the last two administrations and the amount of money they have spent. Wall Street hardly holds a candle to these bunch.
    Why is it you suppose that government rarely to never takes the blame for any mess it creates? Why is the narrative always the public sector and Wall Street?
     
  9. Sourdoughman

    Sourdoughman TigerFan of LSU and the Tigerman

    Joined:
    Oct 11, 2003
    Messages:
    12,326
    Likes Received:
    575
    Obama talks of shared sacrifice, just what sacrifice has he,politicians or our government made? That Certainly doesn't mean the government's revenue or spending levels have or will decline under this administration. How about Warren Buffet? What sacrifice is he going to make? If Warren Buffet wants to send more money in why doesn't he just do it instead of bitching and playing politics?

    I predict NONE of any of these people will sacrifice, it will be regular people which means the middle class, poor and rich will be fine. It amazes me the way people ignore the governments role or just follow like sheep and blame ONLY the rich or private sector.
    How does Obama get away with blaming Wall Street, Bankers, corporations? He is the biggest corporate, union, Wall Street tool, he is also rich. I can say this because it is all true, he has bailed out Bankers, Unions, Corporations, Solyndra. He told the bankers that he was between them and the pitch forks after he bailed them out. It all seems like Halloween.....
     
  10. SabanFan

    SabanFan The voice of reason

    Joined:
    Oct 21, 2002
    Messages:
    26,080
    Likes Received:
    1,247
    Simmer down, Sidemeat. I didn't say copied it.
     

Share This Page