Buffett: Corporate-jet demagoguery is nonsense
posted at 2:55 pm on July 19, 2011 by Ed Morrissey
Via Verum Serum, this actually goes back almost two weeks, but it’s worth the time. Barack Obama supporter Warren Buffett, one of the wealthiest men in the world and a believer in redistributionism, seems to draw the line at demonizing corporate-jet owners. Why is a corporate jet any different than, say, a corporate locomotive — or any other corporate-owned transportation? Congress passed a rule allowing for 100% depreciation in the first year for all capital purchases in order to stimulate manufacturing and sales, a rule that applies to more than just corporate jets. Buffett balks at calling Obama’s demagoguery “political theater,” but the implication is rather clear:
Besides, if corporate-jet ownership breaks are the bane of fiscal responsibility as Obama keeps alleging, then why are Democrats spending $7.5 million in Rep. Zoe Lofgren’s district to expand an airport for … corporate jets?
U.S. Rep. Zoe Lofgren (D-San Jose) on Wednesday announced that Mineta San Jose International Airport has secured a $7.49 million grant from the Federal Aviation Administration to help pay for the next phase of a new taxiway extension on the airport’s west side.
The Taxiway W project is expected to enhance the safety of general aviation aircraft and further reduce the risk of accidents on the airfield. This is the third of a five-phase plan to complete the new taxiway that also will help support the future development of the airport’s west side for general and corporate aviation activities.
And that $7.5 million is just a down payment, apparently:
The remainder of Taxiway W will be built over the next several years, contingent on federal funding. The total project cost is about $55 million.
Gee — I wonder how much of that will come from Lofgren’s federal pork trough?
Blowback
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Buffet, like Wynn, like so many others, are smart fools.
Schadenfreude on July 19, 2011 at 2:59 PM
Buffett doesn’t know what he’s saying here.
According to bayam, Buffett is a progressive that supports Obama 100%.
blink on July 19, 2011 at 3:00 PM
Buffet: Investor extraordinaire, political noob.
BobMbx on July 19, 2011 at 3:00 PM
Useful (rich) idiot
faraway on July 19, 2011 at 3:01 PM
Because the San Jose area is full of Dem-leaning tech companies that aren’t evil.
Mark1971 on July 19, 2011 at 3:03 PM
LOL, right now poor bayam is adrift in the South China Sea.
Del Dolemonte on July 19, 2011 at 3:04 PM
Gee, ya think?
cmsinaz on July 19, 2011 at 3:07 PM
Warren Buffet is a Classic “Close the Door” Guy
He wants OTHER peoples taxes to go up, and complains when HIS taxes go up…
the_ancient on July 19, 2011 at 3:08 PM
Corporate Jets, tax the Rich (millionaires and billionaires), tax the Oil Companies (but prevent them from Drilling!) – this is just the usual BS to score political points!
gullxn on July 19, 2011 at 3:09 PM
Good solid A+
Gang-of-One on July 19, 2011 at 3:10 PM
:)
Schadenfreude on July 19, 2011 at 3:10 PM
Another major Corporate Jet Airport, Teterboro in the Blue State of New Jersey, also got an upgrade last year, to the tune of $39 million.
Never heard O’bama or the Dems complain about that!
Del Dolemonte on July 19, 2011 at 3:11 PM
He supports redistributionism because he makes money off the victims. To wit, estate taxes. Old Farmer passes away and family has to sell farm to pay the estate. Like vultures, WB and ilk swoop in to buy cheap from desparate family, flips the quick sale of assets, sits on the rest until they can sell high or repackage the lot along with others for sale to developers or corporate farms.
They make the money, the family loses a home & inheritance. Sweet deal for politicians, the treasury and the vultures. Then for encore, the politicians come back and rail agains corporate farms and hit them up for contributions to keep out the small/indy farms. And we wonder…
AH_C on July 19, 2011 at 3:13 PM
Warren, Warren, Warren. You and only you decided to saddle up to Marxist trash.
Own it, b*tch!
MNHawk on July 19, 2011 at 3:14 PM
Could be Buffett was OK with demonizing capitalism till it started to affect him. Buffett has owner NetJets since 1998:
http://en.wikipedia.org/wiki/NetJets
I’m not positive that the same deduction applies to NetJets, but from my understanding of the company I’d assume it would. They own a fleet of 340 business jets making them more than likely the largest private jet owner in the country.
SoRight on July 19, 2011 at 3:15 PM
Actually he’s a huge founding investor in ventures that time-share corporate/charter jets. Oddly enough, his ventures would gain business customers if they abandoned their corporate jets for his time-shares.
In any case, whenever WB speaks, I look for his golden lining. Benevolent, he is not.
AH_C on July 19, 2011 at 3:17 PM
Or opportunistic businessmen who don’t mind colluding with government if it benefits them directly. Fascism is cool as long as you’re the one pulling the levers.
gwelf on July 19, 2011 at 3:20 PM
I’m sure that’s just a coincidence.
Like Mr.i’m-taxed-at-a-lower-rate-than-my-secretary Buffet wants higher tax rates in the interest of fairness, but lobbies like hell to keep user fees on private jets a fraction of the rate that the commercial carriers pay.
billy on July 19, 2011 at 3:23 PM
I thot it was NetJets. I also remember reading an article about when NetJets did their sales pitch to him and he blew them off at first. After thinking about it, he called them back for the full presentation and was sold as a customer.
I wasn’t sure if he ended up owning it, but your link confirms it. I would think that to WB the taxes are just part of business expenses, whereas corporations use the jets for speed, convenience & prestige, the write-offs just make owning more affordable downstream.
AH_C on July 19, 2011 at 3:26 PM
In addition to owing NetJets, Berkshire also has a business that avaition services
Warren Buffett, the government should require everyone to pay more… but when it is me and my company, not so much.
AndrewsDad on July 19, 2011 at 3:28 PM
This is the thing a lot of liberals don’t get. Conservatives don’t love corporations like liberals love government. Conservatives love liberty. We want businesses which are comprised of individuals to have the liberty to pursue their interests (which creates jobs and prosperity for all along the way).
We don’t want corporations to collude with government to get special consideration. We want government to stay out of it for the most part.
gwelf on July 19, 2011 at 3:31 PM
Additionally,
This is why you’ll hear about a lot of Democrat corporate heads – they don’t mind a big government and regulation as long as they get to twist it to hurt their competition and provide special consideration for themselves.
Do you think the CEO of GE hates big government? Not at the moment.
gwelf on July 19, 2011 at 3:33 PM
He’s just a simple country billionaire who actively backed obama, and like obama has spent his entire life IN BED with anyone who agreed with him.
try again later on July 19, 2011 at 3:39 PM
The corporate jet issue was just Obama Husseins’s spite at Donald Trump (and his lavish corporate jet). Obama Hussein mainly operates out of spite.
Dhuka on July 19, 2011 at 3:41 PM
I’ve no sympathy whatsoever for anyone who sleeps with the little messiah. Buffet can now live with the downsides of sleeping with a socialist. If his jet industry gets screwed, too bad for Buffet.
BillCarson on July 19, 2011 at 3:43 PM
By the way, if Buffett wants to pay more taxes, all he has to do is declare a dividend on his company.
slickwillie2001 on July 19, 2011 at 3:47 PM
Which reminds me – what’s with all of these super rich liberals who want taxes “on the rich” to go up and give vasts amount of money to Bill Gates’ foundation. Why don’t they just give it all to the federal government. Surely there is no better us of capitol.
gwelf on July 19, 2011 at 3:52 PM
The difference between Wynn on Monday and Buffett’s complaint two weeks ago is Wynn went right after Obama, to the point he can’t take back what he said. Warren, on the other hand, is still playing around the edges, getting in jabs at some Obama statements, like those on corporate jets, but never going directly after the man himself.
That leaves Buffett room to come back and fully support Obama again in 2012 without having any comments directly attacking the president thrown back in his face. So while the jab at Barack’s hyperbolic rhetoric is nice, it’s in no way a sign that Warren’s cut ties with this White House; he’s justvtelling them there are certain targets they should stay away from, but it’s perfectly fine to go after the others (just make sure GEICO, Dairy Queen or Burlington Northern-Santa Fe aren’t involved).
jon1979 on July 19, 2011 at 3:53 PM
Mr. Buffet may be right about this ONE THING, but he can still kiss my arse. He worships at the Barry throne and I have no use for him.
CantCureStupid on July 19, 2011 at 3:54 PM
Seems pretty likely; this wouldn’t be the first time he flirted with federal facism. There’s quite a bit about Buffet that doesn’t pass the smell test, once you drop the corporate worship.
Uncle Sams Nephew on July 19, 2011 at 3:55 PM
The left has just become so confused now that they are the rich guys whose income Barry wants to redistribute: “No, not me, Barack. The enemy is that guy, the rich one standing over there. Not me. I’m one of the good rich guys. I…gave you money!”
Rational Thought on July 19, 2011 at 3:57 PM
Warren Buffett, Robber Baron?
By Christopher Chantrill
I know that we are all supposed to love Warren Buffett as the Sage of Omaha, businessman and all-around good guy, but I keep reading stories that make me wonder. Here’s a story about Warren Buffett, the estate tax, and the life insurance industry.
Did you know that the life insurance lobby is actively lobbying to restore the estate tax?
Why would the life insurance industry care about that? It turns out that ten percent of life insurance industry revenue is related to the estate tax. Wealthy people take out life insurance in order to reduce estate taxes because when you die, your life insurance payout doesn’t count as part of your estate.
Did you know that Warren Buffett owns six life insurance companies? Did you know he supports the estate tax? You do now.
More here.
Akzed on July 19, 2011 at 4:01 PM
Warren, He’s your man, remember when you lay down with dogs you get fleas.
RJL on July 19, 2011 at 4:15 PM
LOL, O’bama’s Corporate Jet (AF 1) makes Trump’s plane look like a balsa wood glider.
Del Dolemonte on July 19, 2011 at 4:28 PM
When I see the President, the house and the senate flying coach, then I’ll take that idiot seriously.
jeffn21 on July 19, 2011 at 4:34 PM
BINGO!!!
capejasmine on July 19, 2011 at 4:37 PM
Hey Warren! STFU! Barry’s your man.
Oh, and you write that check to the government yet because they’re not taxing you enough?
Freaking hypocrite!
GarandFan on July 19, 2011 at 5:01 PM
I hope everyone here has put together that when Buffet says he pays less taxes than his secretary it means he isn’t paying the top rate NO MATTER HOW HIGH IT IS. Thus he is saying tax someone else when he says “raise it!”
I used to work in corporate finance. The options for AVOIDING taxes are plentiful at the corporate level and for CEOs and NOT plentiful to successful small businesses through selling bonds,transferring stock etc.
Second, Buffet is in the finanacial services/insurance business which means tax shelters and that business ACCELERATES AND EXPANDS the higher the top rate.
What you are seeing him here is reacting to the corporate loopholes HE is using that he also can’t profit from being raised. Buffet doesn’t like transactions where he doesn’t benefit and that is all you need to know about Buffet.
Conan on July 19, 2011 at 5:37 PM
Please, please, please. If anyone every has a chance to ask Buffett a question. “Mr. Buffett, how many companies are there in the Berkshire-Hathaway portfolio that have lost money 37 years out of the last 40 years, and are scheduled to lose more and more money every year going forward as far as the eye can see?”
motionview on July 19, 2011 at 5:40 PM
For all intents and purposes, he is. But as a progressive, he’s also a hypocrite.
xblade on July 19, 2011 at 5:53 PM
Warren did buy a choo choo recently…..are we being sent a message from the uber rich? Is the proverbial writing on the wall?
Dr Evil on July 19, 2011 at 5:59 PM
Again who makes , maintains, flies, and stewards corporate jets? Pssst it is not the rich guys.
CW on July 19, 2011 at 6:18 PM
I never said that. It’s well known that Buffet supports politicians on both sides of the aisle depending on what issues he sees as most pressing at the moment. In the state of California, he supported the Governator over the Democrats. In the latest election, his vindicated belief that unregulated derivatives were ‘weapons of financial mass destruction’ led him to support Obama given his pledge to further regulate Wall Street. Interestingly enough, Greenspan himself, the former champion of self-regulation in banking, has admitted that Buffet was right all along and that tighter regulation and transparency in the CDO and related markets would have prevented the meltdown.
Or as Munger put it, the US was living in the land of Bonehedia for almost a decade:
http://www.slate.com/id/2298582/
But Buffet doesn’t have any vested interest in ‘vulture’ purchases of family farms and estates.
Remember that he didn’t make a point of supporting these taxes until it became clear to him and many others in the GOP business world that you can’t balance the budget without this revenue. Alan Greenspan and Paul O’Neill are two other prominent business leaders from the GOP that have expressed similar concerns. And the same goes for the three other wealthiest Americans- Gates, Ellison, and Zuckerberg.
Buffet has very consistently pushed for the US balancing its accounts, esp. the US trade deficit. Buffet has described US trade with China as ‘semi-trade’, since it lacks parity and results in a massive US wealth drain to China every year.
bayam on July 19, 2011 at 6:49 PM
He is called the Oracle of Omaha. Did Warren see something in his TEA leaves :)
Dr Evil on July 19, 2011 at 6:58 PM
What an obvious phony. He’s all in with socialism as long as his corporate jet isn’t demagogued and he doesn’t actually have to give up any of his billions while playing at being a socialist and calling for tax hikes. I guess he’s sort of like Leona Helmsly only Buffett would say: ‘Socialism is for the little people’ instead of “taxes”.
Drop dead, Warren, you old futz.
JimP on July 19, 2011 at 7:03 PM
Greenspan and Bernanke have both called for some higher taxes- should we be concerned that these GOP appointees are actually socialists, maybe even Soviet moles?
That’s correct, his taxes are dictated by the capital gains rate and Warren isn’t your average Wall Street stock flipper, so he only pays the long-term cap gains rate.
bayam on July 19, 2011 at 7:12 PM
I don’t know if Warren is anything more than a member of the got white guilt club. He’s from the generation that remembers Jim Crow. It’s easier for a camel to pass through the eye of a needle than a rich man enter heaven. There is a rule – If you can do no good at least do no harm….Warren’s been guilty of assuaging his conscience at the expense of his countrymen. It’s the Free Market Mr Buffet, no one put you in charge of tinkering with it.
Dr Evil on July 19, 2011 at 7:13 PM
Much like the President and our citizens, Corporate Executives are responsible for the livelihoods of every single person that both works at their company and those with which they do business. Anyone ever missed a flight? Had one delayed? Cancelled? When millions of jobs rely on you getting a deal done fast, it’s flying commercial that’s irresponsible.
And Besides….
Obama’s just mad that all those “fatcats” on corporate jets are doing more to stimulate this economy than anyone on Air Force One.
Medicated on July 19, 2011 at 8:19 PM
” He’s from the generation that remembers Jim Crow…
Dr Evil on July 19, 2011 at 7:13 PM”
I remember Jim Crow too. In fact I saw it up close and personal living in the Jim Crow South. Yet, I feel no guilt. Must be because I didn’t partake. I was too young and was taught not to hate by family and church. Warren perhaps IS guilty. Hmmmm. Say, Warren’s a Northerner isn’t he? I thought they were all saints or something./s Anyway, it’s not Barry’s Black half that everyone hates. It’s the Marxist white half. No wonder Warren is confused/ing. He voted for Barry out guilt over his racist behavior toward Black people and then his guilt made him talk the socialist talk even though it’s the white Marxist half of Obama that loves socialism. Marxism is a white people’s neurosis. The only non white people who believe in Marxism are sell out tools of the white Marxists overseers./heavy sarcasm
JimP on July 19, 2011 at 8:41 PM
Where’s my check, Warren?
slp on July 20, 2011 at 12:25 AM
It’s not about jets, really. It’s about sanity in the tax code. This is one of the few areas where the code got more sane instead of moving in the opposite direction.
No one argues that capital investment is key to economic growth, or that it is a legitimate business expense. But the old rules required capital investments to be gradually depreciated, so companies had to deduct the expense slowly over the item’s expected life (as determined by federal bureaucrats) even if they paid cash for it.
Economic need forced the change under Bush, but it should be a permanent feature that 100% of capital expenditures may be deducted in the year spent.
Adjoran on July 20, 2011 at 1:41 AM