Warren Buffett, CEO and chairman of Berkshire Hathaway, just announced today that he wrote a personal donation check to the United States treasury in an effort to comply with “The Buffett Rule.” In another interesting turn of events, every Berkshire Hathaway investor is going to have 30% of their capital gains and dividends withheld. This money will then be sent directly to Washington.
The Buffett Rule was championed by congressional Democrats and Pres. Barack Obama, and it proposed that everyone would an income over $1 million pay a 30% tax.
Warren Buffett is going to personally unveil the three-foot by six-foot donation check on the Treasury steps in a press conference this afternoon. According to the press release put out for the event, Warren Buffett said, “As I wrote in the New York Times, ‘My friends and I have been coddled long enough by a billionaire friendly Congress. It’s time for our government to get serious about shared sacrifice.’ Today, I, Warren Buffett, and personally getting serious about shared sacrifice.”
Buffett’s actions received a lot of praise from the White House, and Pres. Barack Obama said, “Let me be clear. This puts to rest any GOP driven allegations that Warren Buffett was a hypocrite on the tax issue or was just engaging in a bit of moral preening.”
According to the Joint Tax Committee, if The Buffett Rule is enacted, over the next decade, it would raise $31 billion worth of tax revenue. As a way to put this in context, that is only less than 1/10 of 1% of the federal spending that will take place in the next 10 years.