Monday, October 6, 2014
Does Obama Think Warren Buffett Is Unpatriotic?
But, that was then and, now, Buffett, may just be on the President's sh*t list.
That's because, Burger King -- a company that Buffett's Berkshire Hathaway conglomerate has a $3 billion stake in, and for which he would receive a handsome annual 9% interest payment -- is now using Buffet's money to move its headquarters to Canada to avoid paying high taxes in the U.S.. This is done by using a process called corporate inversion or tax inversion. Just this year, Obama has called such actions "unpatriotic".
So, with that, is Warren Buffett -- who is vehemently defending the Burger King's tax inversion deal because, of course, he is a rich guy who will only get richer because Burger King can duck U.S. taxes -- now "unpatriotic" by Obama's very public definition?
Of course, one thing is sure. Buffett's backing of tax inversion has put the President in a box where he can never again refer to the Buffett Rule when trying to push higher taxes on the rich. Nor, can Obama ever criticize corporate tax inversions. Because to do so would force him to criticized Buffett; a major and very influential donor to liberal causes and liberal politics.
Picture Source: 2011: Obama Meets With Warren Buffett: http://www.theatlantic.com/politics/archive/2011/07/picture-of-the-day-obama-meets-with-warren-buffett/242161/
Buffet Rule: http://en.wikipedia.org/wiki/Buffett_Rule
Obama: Offshore 'Tax Inversions' Are Unpatriotic: http://www.huffingtonpost.com/2014/07/26/obama-tax-inversions_n_5623222.html
Warren Buffett stands by Burger King deal: http://www.politico.com/story/2014/09/warren-buffett-burger-king-111092.html
Why Burger King Is Paying 9% for Warren Buffett’s Blessing: http://blogs.wsj.com/moneybeat/2014/09/03/why-burger-king-is-paying-9-for-warren-buffetts-blessing/