US Tax cut brings $29bn to Buffett’s company

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February 25, 2018

The new law had massively lowered corporate tax rates

Berkshire Hathaway, the holding company of U.S. billionaire investor Warren Buffett, received a stunning $29 billion last year from the U.S. government, thanks to a new tax law that massively lowered corporate tax rates.

February 25, 2018

The new law had massively lowered corporate tax rates

Berkshire Hathaway, the holding company of U.S. billionaire investor Warren Buffett, received a stunning $29 billion last year from the U.S. government, thanks to a new tax law that massively lowered corporate tax rates.

In his much-anticipated annual letter to shareholders, Mr. Buffett explained that the company’s net gain of $65.3 billion in 2017 was only partly due to his employees’ efforts. “Only $36 billion came from Berkshire’s operations,” he wrote. “The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.”

21% rate

Still, Mr. Buffett assured stockholders, “The $65 billion gain is nonetheless real — rest assured of that.”

The new law, greatly touted by President Donald Trump, lowered the tax rate paid by U.S. corporations from 35% to 21%, allowing many to undertake major new outlays and others to book significant fiscal gains.

Forbes magazine estimates Mr. Buffett’s personal worth at some $87 billion.


Courtesy/Source: AFP