What's wrong with thinking that the Gates charity will do better things with the money (ending poverty, curing diseases) than the U.S. government would (pork projects for congressmen and tax cuts for the rich)?

You know full well that anyone who wants to could donate their fortune to charities and avoid estate tax. That's even one of the main reasons proponents give for keeping the tax!

Plus, Buffett has said all along that his kids won't get a dime, and it would either go to his wife or a foundation which he could trust to properly manage Berkshire Hathaway.

Huh? I know you're a Republican and everything, but this makes no sense even by those standards. If you want your heirs to benefit from your capital appreciation, then if that capital appreciation is large, there will be an estate tax. On the other hand, if you don't want your heirs to benefit from your capital appreciation, and instead you want to give your money to charity, then you can do that and not have to worry about the estate tax, mainly because once you've given your money away, there's no estate to tax. What part of this do you not understand?

Right. Buffet is sneakily avoiding the estate tax by giving away his fortune so there is nothing left to tax. That conniving sneak! And here all these lemmings are falling for it. Obviously, it's an old trick used by the very rich: Give all of your money away to avoid taxes. Buffet, you can't fool all of us!

Seriously, dude, how much would he have been taxed by the estate tax? Whatever it is, I can gaurantee you it is not 85% of his net worth.

OK everyone, read the fine print.

Buffet is giving "everythign away". "Nothing" is going to his kids. Except...

The charities he is giving his money to are: B&M Gates, 3 foundations run by his kids (1 per kid), and 1 for his late (sorta ex) wife. The Gates get real money and have to spend the cash they get every year (essentially doubling the spending of the foundation). The kids get to manage a very large foundation.

What qualifies as allowable spending for foundations to keep their tax free status? Well office space and salaries qualify. So if one was nefarious, one would set up a foundation for your child, who could take a large swack of salary, rent some very choice real estate for "offices" (London, New York, Aspen... all critical charity hot spots)... All very charitable, of course.

So Warren gives his actual donations to Bill, who is running a real foundation, while he sets his kids up with fake foundations that they can milk as a tax free way of giving them cash (while he's alive no less) and even getting a TAX RECEIPT for his trouble!

If you're merely rich, you have to give your money to a normal charity, and they might name something after you or put your kids on the fast track for admission. You still lose your assets and everything goes away. If you're a billionaire, you can "give it away" to charities that your friends anf family control, can exploit the assets, and be applauded for this, while taking a faux leftist political stance that is really class war against the nouveau riche and entrench your position.

Just goes to show how stupid leftists are, when they don't see how they're being manipulated by the super rich. Never mind the stupidity of being a leftist and reading a wall street blog. Go farm organic hemp or somethign and let the adults focus on business and politics, you dirty hippies!

Fine print? The man doesn't have to give away a thing (except what's taken by taxes). Most of the money goes to the Gates Foundation. That a multibillionaire leaves SOMETHING to his kids shouldn't be looked down upon.
Perhaps if you had the frugality of Buffet you wouldn't have to be complaining about the tragedies the "merely rich" face when managing their assets to avoid tax burdens.

I'm pissed at his faux socialism and the way the media and leftists on this blog and elsewhere treat his political stances as heroic. He's lying.

He can do whatever he wants with his money, I'm just pointing out that what he's saying he's doing with it (and how he wants everyone else to have to deal with their money) is different from what he is actually doing.

As to the point of the tax... it makes low end leftists feel good while the GV leftists reduce crowding somewhat at Teterboro and Aspen. Economic value? Who cares, it makes the Left feel better. Utter twaddle and BS, but what else is new?

Do you actually have any evidence for the mismanagement of the funds that his children operate? Has there been any wrongdoing documented by any government agencies or the media against his children? It seems like you're getting very emotional without any reason to be.

Buffett is still leaving his children money but it is nowhere near the wealth that he has amassed through Berkshire. Most people know that he invested a good chunk of his wealth into BRK a few decades ago and has been investing with the left-over capital (around $1m). It is this smaller fortune that he is giving away to his heirs.

So let's recap:

-he unloads majority of his BRK shares to established charitable organizations

-no allegations of mismanagement have occurred with these organizations

-he has his own money outside of his BRK shares to leave to his heirs

-this money will be taxed

Why do you sound so bitter?

"He can do whatever he wants with his money, I'm just pointing out that what he's saying he's doing with it (and how he wants everyone else to have to deal with their money) is different from what he is actually doing."

Okay, he's giving away around 70% of his BRK holdings to the Gates foundation, which puts it completely out of the reach of his family. Around 15% is going to be split among four foundations controlled by his kids. Now, even if his kids were running their foundations in an unscrupulous way (and, by the way, there's no evidence that suggests that that's true), the most they could really do is draw a few hundred thousand in salary. The principal amounts held by the foundations are in no sense under the control of Buffet's children. Sure, an inflated salary for running a foundation isn't nothing, but if it's the residue of a ~$50B fortune, it's basically nothing. If Buffet wanted to, he could pay the estate tax on his holdings and still leave his children a breathtaking amount of money. Instead, he's giving it to the Gates foundation; as a result, literally millions of lives could be saved. I think you have to have a pretty messed-up sense of the world to think of that as a bad thing --as "faux socialism" (and by the way, you might want to use some of your supposed bulge bracket comp to invest in an encyclopedia--I do not think that word means what you think it means).

"As to the point of the tax... it makes low end leftists feel good while the GV leftists reduce crowding somewhat at Teterboro and Aspen. Economic value? Who cares, it makes the Left feel better. Utter twaddle and BS, but what else is new?"

The point of the tax is to raise revenue for the government (to do things like pay for the army and build roads) in a way that provides the least disincentives to work , innovation, and savings. The estate tax has been in place since the beginning of the twentieth century, and I think you'd be hard-pressed to argue that the US economy has been hamstrung during that period.

Look, I can understand why you don't like the estate tax. You have what I'd guess is a misguided belief that you're likely to die a Captain of Industry, and that the estate tax is the only thing that will prevent you from establishing a Rockefeller-like dynasty stretching forward centuries into the future. You're free to believe whatever you want. But just admit that your opposition to the estate tax is based on your (probably misguided) sense of your self-interest, and that you don't know anything about the public policy behind it. Because you clearly don't.

Haha, 'bulging bracket' got owned!

I find it strange that Sean wants to play mind-reading games with BB, pretending he can discern BB's motivations for opposing the estate tax. Why should anyone assume BB is motivated by an ambition to protect a hypothetical personal fortune rather than a concern that we have appropriate tax policies?

What we do know is that Warren Buffett did not want to hand his wealth over to his progeny and supported a tax-policy that made it more difficult for others to pass their wealth to their own heirs.

In short, he sought to make his personal preferences into a public policy which restricts the personal preferences of others. And he, along with his allies, won.

I thought that this was worth pointing out.

I find it strange than anyone who would question the motivations of a multi-billionaire who is giving away 85% of his vast fortune to charity would have the nerve to criticize someone else of "wanting to play mind-reading games" in their criticism of someone else who accuses said billionaire of "lying" as part of an oh so clever scheme to funnel miniscule amounts of his vast wealth to his children through charitable misappropriations.

You could accuse Buffett of being hypocritical by supporting an estate tax and then leaving little in his estate to tax; while short sighted in its failure to recognize that general opposition towards massive intergenerational wealth transfers is consistent both with support of an estate tax and giving away your wealth to charity before you die (and peace on earth and goodwill towards man), that idea at least would make some sense.

I don't think you guys have thught through your arguments? The reason there is no estate tax if you give all your money to charities is YOU DON'T HAVE ANY MORE MONEY!! Before you slam the Bill & Melinda Gates Foundation maybe you should do some reserch about their charity. It just so happens that it is the most efficient charity in the world when giving away money.

The point of the estate tax is to break up large fortunes and give the money over to democratic, egalitarian control. What Buffett has done instead is to give the world's second-largest fortune over to the unrestricted control of the man with the world's largest fortune.

Money that goes to the Treasury via the estate tax is subject to democratic control, and you and I have a vote in where it goes. The Gates Foundation answers only to Gates. You may like Gate's choices now, but he's free to switch his focus to any number of causes that you may find unpleasant.

Note too that Buffett's plan benefits his wealthy shareholders (at $100K per share, his company is not owned by small investors) by protecting his stock price, whereas an estate-tax assessment would have forced his estate to dump shares on the market all at once, lowering their price.

Yes my comment would be yes do some good, but this is also my question. Why always show the third world countries with the hurting starving people. That are getting so much help? Hey I'm all for helping out others, but why not just go outside our own back yard, and see the poverty in our own back yard.
Yes the money will go to the big corporations that already has their pockets lined with silver, and gold, but what about us the Americans who are living up to our necks in pain, and suffering everyday. My husband worked as a paramedic, to a private investigator for the coroners. To even a sherif, and when he has now had three heart attacks, cancer, to loosing his eye site, and might I add paid a whole ton of his money when he worked so many hours to the Tax Gov. That he has to even beg for a food card, to his disability, because at his age 44 years old he has to still be healthy. He paid years into the Taxes, and he sees all of these thrid world people coming in here and getting free houses, to free tax breaks, free medical, and free food. Hey I got it why don't we Americans try to go to the third world so we can get some help. Instead of fighting day by day with these non english speaking case workers that are now the very ones turning our families away. While they use their sepperate applications in the backl of the Human resourse office that Americans don't even know about.
UNLESS like my husband and I who also worked as security guards found out. That the thrid world people have their own sign in for free everything papers that are hidden in the back, and not the front.
So next time you see a poor third world family of 10 filling up their three shopping carts with food while they grow in birth numbers. Try remembering those of us in your own back yard who also are in need.
Hey better yet why not try and give me some of those millions, and watch how many people in the trailer parks all accross America who will get a new fresh start on life, and not for booze either. And what about going right to the doors of these American people in our own back yard like we see all the on TV show how good I am to the poor in another country.
When we start helping our own in our own back yard. Then we as a Nation can be a much stronger force to help others in theirs.
I have watched my husband have to fight for everything he has even got, and also picking him up off of his feet everytime a non American who can't even speak english to him tells him. " I'm sorry sir but there is no way we can help you or your family." As they then speak on in their language helping others out the door with thier wallets full of the dough, reigh, me, me, and more me. Driving the new cars, new clothes. While the American families are starving.
Let me show Warren Buffett, and the Gates how to spend that money, and what a shock it would be, because I would take it to the highways and biways in our very own back yards. Right to the people themselves where the real pain lives in AMERICA TOO!
To the poor single mother with children hanging on her apron. Have you ever seen a Millionaire go right to the shack door of an American to feed their young???
How about the elderly to making a differance in a trailer park, and cleaning it all up with new trailers. Hey it's just a drop in the tiny money bucket, but what a new fresh start for an American. Instead of us always seeing the poor thrid world countries getting the brand new homes. Yes by all means continue helping them, but don't forget that America is the exact same way.
If you would just take a walk out of the jet, and mansion and hang out in a camp ground where so many American's live now, because they lost their homes. To how many hours they work trying to just survive.
Try helping those of us in your own back yard face to face, and not through these so called huge organizations. Where the little guy who paid his Taxes never and I do mean ever sees a dime returned.
If I sound upset it's because I am. All we ever see is a poor hungry child in another country, when I can show you all a million little faces right here too! Would you be on TV showing them? While then showing the actions to help them that match your words for the other countries?
Yes again I'm not trying to crush these other countries with meaness, but we've been shown the whole scene over and over again. How much help that they are all getting while our own back yard is starving.
Try giving some of that cash to me, and then watch the Amercian dream come alive again.
I sure won't be heading to an organization to feed America, and help them back up on their feet. I would get a traveling bus, and take it right to the Americans face to face, and let their little faces speak for AMERICA. The land of the free that so many has lost their dream, and had it crushed in the dust.
By all means let the money be a tax right off, but show America that they too are important, and can also be on a TV show. Where they are recieving food face to face, and help with their lives to make their lives a little easier, and then you'll hear a new voice from the other countries.
To how the Americans not only help other countries poor, BUT they also help their own back yard poor as well, and not from organizations that use their power with the MULLA for more gain, and popularity.

OK I'm done, and now have to go back to my disabled little hut to take care of a dying Husband, while helping a senior Mother also disabled, and still take care of our child who doesn't understand why all of the faces getting help is in these other Countries.

May God Bless America, and never forget that there is a God that the big wigs used to serve in History, and they would roll over in their graves to see the land of the free right now, and where it's gone............

VERY mister WARRENT, HIS MONEY IS Y YOU DO HIS IT WHAT ELSE THEY PLEASE HIM. I COME FROM THE PATAGONIA ARGENTINA RAWSON CHUBUT I AM NOT RICH I DO NOT HAVE MONEY LIKE YOU, And I NEED IT, NOW I AM ASKING HIM FOR A DONATION FOR A PROJECT THAT I HAVE for THAT the fact THAT THEY ARE NOT NOT ENOUGH IS TO ASSIST To THE NEEDY HERE,. I EXPECT HIS ANSWER .
ATTENTIVELY I GREET IT.

Hello Mister Buffett!!

Heute stand ein sehr interessanter Bericht über Sie in unserer Tageszeitung.
Wir finden es sehr toll, dass Sie Ihr Vermögen an Wohltätigkeitsorganisationen verschenken und können Sie dafür nur beglückwünschen. Wir finden es auch sehr gut, dass Sie in Ihrem Alter nochmal Ihrem Leben einen anderen Sinn geben wollen. Wir sind auch dabei, unser Leben zu meistern. Leider haben wir in Ostdeutschland (Sachsen/Anhalt - Magdeburg/Gardelegen) wenig Möglichkeiten dafür. Zur Zeit gehen wir nur für 1,00 €/Stunde arbeiten. Momentan gibt es hier wenig Chancen auf andere Arbeit.
Wir sind alleinerziehende Mütter von 3 bzw. 1 Kind. Manchmal fällt es uns sehr schwer, immer den Lebensmut zu behalten. Doch durch Sie sind wir wieder motiviert und würden auch gerne eine Organisation hier gründen. Bei uns gibt es auch schon sehr viele unheilbare Kinderkrankheiten, wo die staatlichen Gelder nicht ausreichen. Die möchten wir gerne unterstützen. Auch sehr seltene Krankheiten sind hier vor Ort, für die sich die Menschen mit Blutspenden sich bereicht erhklären, um den richtigen Knochenmarkspender ausfindig zu machen und damit zu helfen.
Deshalb bitten wir um Ihre Hilfe.

Mit freundlichen Grüßen
und weiteren Erfolg in Ihren Unternehmen

Sabine Preuß und Sabine Schulz

Sabine Preuß
Str. d. Befreiung 21
D-39638 Gardelegen
T.: 03907/711216
e-mail: sabpreus@web.de

Sabine Schulz
Otto-Reutter-Platz 3
D-39638 Gardelegen
T.: 03907/779982
e-mail: SabWiehe@web.de

I think that a person have a right to give away their money to whomever or whatever organization they want to. but, what i don't understand is why give it to the a person who already has his own fortune to give to a charity. Mr. buffet I have a solution,
just give the money to me, i will distribute it to help the needy. I have a lot of organizations in my hometown that is struggling to help the poor. I am not starving but i do know how i can help the homeless, the poor, working poor and those who need assistance with legal problems. Yes, I am saying, the people who are wrongly convicted of crime but do not have the money to hire the a good attorney. Mr. Buffet I am asking you to get in touch with me and hear my proposal.

Sincerely,

annette J daniel

Before any of you jump onto the "beat up the rich philanthropist" bandwagon, I suggest you look into the foundations.

Bill and Melinda Gates have set up a foundation that does a tremendous amount of good and that is slowly siphoning their wealth off into those parts of the world most in need of a boost. Sure, they (and the rest of the foundation's board) control the money - but being the "richest man in the world" does not automatically make a person into the sort of greedy fsck who would run such a foundation for personal profit. So far, they have put their money into organizations and causes that no government wants to touch because they are too much of a political hot potato (HIV/AIDS, population management), and no industry wants to touch because there's no money to be made in fixing the problem (education, basic health care).

A for Buffett, I'm not suprised that he's done this - he and the Gates family have similar philosophies about wealth - amass it, sure, then *give* it away. Do good works with what you've earned is almost a mantra with both families. Just imagine what good could be done in the world if every multi-millionaire and multi-billionaire invested a large chunk of their fortune in foundations such as the B&MGates Foundation.

Results of a Google German-to-English translation of the June 28, 4:27AM post:

Today a very interesting report stood over you in our daily paper. We find it very mad the fact that you give away your fortune at charity organizations and can only congratulate you for it. We find it also very good that you want to give another sense to your life at your age again. We also are about to master our life. Unfortunately we have few possibilities for it in East Germany (Saxonia/notion - Magdeburg/guard putting). At present we go working only for 1,00 €/Stunde. Momentarily there are few chances here on other work. We are alone-educating mothers of 3 and/or 1 child. Sometimes it falls us very heavily to always keep the life courage. But by you we are motivated again and also gladly an organization here would create. With us there are already a great many incurable teething troubles, where the national funds are not sufficient. We would like to support those gladly. Also very rare diseases are here locally, for itself humans with donations of blood itself bereicht erhklären, in order to make the correct marrow donor and help thus. Therefore we ask for your assistance.