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It's quite common to hear the "look how much the rich give to charity" argument. In reality this is often just a means of avoiding taxes. Charities only have t
by bigtunacan 11y ago
It's quite common to hear the "look how much the rich give to charity" argument. In reality this is often just a means of avoiding taxes.
Charities only have to spend 5% of their interests each year, and that can go to salaries, expenses and such. Why do you think so much of Warren Buffett's "charitable donations" go to charities he created? They are tax shelters that are run by his kids. That is his way of avoiding estate taxes.
- graycat 11y agoYour point is partially correct, but Warren told Bill and Melinda that their foundation will get essentially all of Warren's fortune. Then the foundation will decide how to use it. I doubt if Bill and Melinda will just sit on Warren's fortune and draw a salary for managing it. Instead, likely Bill and Melinda will allocate it as best they can. Spending $100+ billion effectively is actually not so easy, but I do believe that Bill and Melinda and their foundation will spend the money as fast as they can find good places to spend it.
- bigtunacan 11y agoI was referring to the 3 billion Warren Buffett gave to his kids. http://money.cnn.com/2012/08/30/news/companies/buffett-donation/ http://money.cnn.com/2012/08/30/news/companies/buffett-donat...
- graycat 11y agoSure, I didn't know that he did that, but I can understand why. Warren's worth, what, $75 billion or some such? Warren gave $3 billion, only $3 billion? Ah, chump change!
- bigtunacan 11y agoI get what you are saying. I just don't trust a word Buffet writes or says. He claims he isn't leaving any of his money to his kids, but he set each up with a billion dollar charity organization. I once read a very good article, wish I could find the link, that talks about Buffet and says that anytime Buffet says something you should wonder what's in it for him. That while he is claiming your best interest, his hand is reaching into your pocket to steal a dollar.
- graycat 11y agoYou seem to be asking if Buffett is a really nice guy. In some ways, maybe not. My only point was that even if confiscate his money and pass it out among the poor people, the poor people will still be poor and not in the middle class -- even Buffett and the rest of the Forbes 400 don't have money enough to bring all the poor people into the middle class just by confiscation and redistribution. That's not the only possible point to make about inequality, but by itself it is correct.