Warren Buffet recently made the news by suggesting that the rich should pay more taxes, and that he wouldn’t mind paying more.
The problem is that his company is currently attempting to avoid paying taxes to the IRS, and there may be up to a billion dollars of outstanding taxes owed by his company to the IRS, or in dispute.
Berkshire Hathaway struggled for 14 years with the IRS over the dividends received deduction, which was finally settled in the company’s favor in 2005.
For at least 20 years, and probably much longer, Buffett has been struggling to minimize his company’s taxes.
Why is Buffett not able to practice what he preaches?