Billionaire Warren Buffet has admitted to the gross inequality of the system that has let him be successful. The admission comes soon after the Republican government released their new tax plan.
The proposed tax framework will eliminate the estate tax that is levied on money and assets to be transferred on death. This means that any assets or money inherited by the next in line will be completely tax free.
The law should be cause for great joy among the America’s rich and wealthy. Buffet however, is less than pleased.
Speaking to CNBC he said, “I don’t think I need a tax cut.” He added that doing away with the so called ‘death tax’ would be a very “terrible mistake.”
Buffet has rightly recognized that the tax would benefit only the uber-rich of the country. The poor and the middle class would have little to no assets to pass on.
The rich however would push forward millions of dollars to the next generation. This in turn would allow them to start life with a massive advantage over others.
All in all, the tax would take away any small payment that would need to be made to the country as well. This in turn would mean that absolutely no cut of the money would go to benefit the country through the tax system.
Buffet himself is worth almost $80 billion and is the third richest person on the Forbes list. By his own admission he could leave over $75 billion to a host of children, grandchildren, and great grandchildren.
However, he questions the utility of this inheritance. He questions if it would benefit either the inheritor or the country.
He points out that if the people that inherit the money do not make judicious use of the resources it would be bad for everyone involved. He says, “That’s not good for capitalism. I don’t think it’s good for the children.”
In a society that is extremely uneven to begin with, Buffet’s point of view makes perfect sense.