Do progressive taxes

[Roberts]

Much of Warren Buffett's income actually comes in the form of tax exempt muni bonds. If you start taxing those bonds he will stop buying them, pushing up interest rates to taxable yields.

Tax free yields are roughly 4.3% for the same credit quality and duration as taxable bonds yielding 5.5%. The community is paying higher interest rates EQUAL to the taxes collected by the potential wealthy investors.

Of his EARNED INCOME, most of it comes in the form of Berkshire paying his bills for him (security, home expenses and taxable benefits). For his wealth, his actual paid income is upper middle class.

[DaveO]

Another factor is the fact that Berkshire is arranged as a holding company not a mutual fund. Were it a mutual fund it would distribute income to its shareholders in the form of taxable dividends and capital gains. Instead the holding company pays the taxes and lets the gains roll. Maybe if Warren considered the amount of tax Berkshire pays on his ownership of the stock he would sleep better.

Don't forget his donation of highly appreciated stock to Bill's foundation for which I'm sure he took a deduction at FMV for.