Posted October 19, 2019 06:22:34In a statement to CNBC, Berkshire Hathaway Chairman and CEO Warren Buffett said that “tax avoidance will continue to exist, particularly as we transition to a new tax regime.
As tax reform continues, tax avoidance will increase.”
In a blog post, Buffett also pointed to his position as the world’s largest shareholder in Apple Inc., and said that the company “has proven to be a great tax-efficient investment vehicle.”
Buffett wrote:In the past year, Apple’s stock price has risen about $7 billion, and the company is trading at a discount to its earnings in 2017.
But the tax code has allowed companies to shift profits and earnings around to pay lower taxes, and that has been a key issue for Warren Buffett.
“The tax code is not as complex as it used to be.
It’s much easier to make tax-deductible, so we have a very favorable tax situation,” Buffett wrote.
“I don’t think it will continue, and it will probably accelerate.
The new tax rules are being put in place to help people who want to take advantage of this tax break.”
A key issue is the tax rate for the wealthy.
Under the current tax system, the top individual income tax rate is 39.6%, while the top bracket is 35%.
The top corporate tax rate, meanwhile, is 39% and the top rate for pass-through entities is 15%.
Buffett wrote that he has “no problem” with the current system, and pointed to “significant revenue gains” from the current rules.