Saturday, December 15, 2012
Warren Buffet, Hypocrisy & Giving
Multi-billionaire Warren Buffet wants to pay more taxes. At least, that’s what the famous CEO of Berkshire Hathaway says. For more than a year now, Buffet has publicly advocated for higher taxes on the wealthy. In fact, a proposed bill bearing his name would have required that all millionaires pay at least 30% in federal income tax, but it failed Congress.
So now, Buffet is pushing for higher estate taxes. He signed an open letter released last week that advocated raising the tax on all estates worth two-million dollars or more to at least 45-percent.
Surprisingly, though, Buffet’s company recently bought back an unprecedented 1.2 billion dollars of its own shares from an unnamed shareholder. This move comes just weeks before the estate tax is expected to rise dramatically so it likely will save the shareholder hundreds of millions of dollars in estate tax. Why would Buffet agree to this obvious tax-saving move if he so ardently desires the rich to pay more? Why, too, did Buffet himself pay only 11-percent in taxes last year? It seems what Buffet advocates and what Buffet does are two very different things.
But, before we decry Warren Buffet’s hypocrisy, perhaps we should evaluate whether there’s a proverbial speck in our eye? As followers of Christ, we believe that we’re supposed to be cheerful and generous givers. But, are we?
Studies show we Americans are the most generous givers in the world – and religious Americans are far more generous than their secular counterparts. According to researcher and professor Aurthur Brooks, we give more than three times what our secular counterparts give – an average of 22-hundred dollars a year.
But, that’s still a measly amount considering how much we have been given. For most Americans, 22-hundred amounts to less than five-percent of our income. Not to be legalistic, but the Old Testament tithe was 10-percent. And, when feasts and priestly tithes are added in, the full tithe amounted to about 30-percent. We’re not under the law – and the Apostle Paul encouraged each of us to “give what he has decided in his heart . . . not reluctantly or under compulsion.” But, does the amount we've given this year match the principles we espouse? Let's not be like Warren Buffet. Let's make sure our giving matches our speaking – and let's give generously from the heart.
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Well said! The whole premise of the tax system we have has gone far beyond its original intent to the point that it is now more a government tool for compliance; both in the positive for those who think they will benefit from proposed programs funded by increased taxes, and the negative in the case of Warren Buffett, Mr. Immelt(sp) of Gen. electric, the "jobs czar" whose company pays nothing, or next to nothing, but who wish to not feel the weight of the government and so support legislating confiscation. Government is unable to be charitable! That is what we are called to be, to give out of charity, from the Latin caritas, or love. Sadly People like Mr. Buffett seem to lack that understanding and desire to be seen as charitable through the efforts of those whose toil actually produces the means of those benefits. So long as we have an incorrect understanding of the story of Robin Hood though, we will have an incorrect understanding of how taxation works. Perhaps that story should be re-read while sipping a nice cup of tea.
ReplyDeleteJulie, I think you and Mark Elfstrand are continually mischaracterizing Warren Buffet, and the rich as a whole.
ReplyDeleteLike the WarrenBuffet, form what I understand is NOT giving his children any more than what he already has provided. See this article for details http://www.dailyfinance.com/2011/06/17/fathers-day-what-warren-buffett-gave-to-his-kids-values-not-billions/ So they would NOT benefit significantly from beating the estate tax.
He also set up the Giving Pledge He has personally pledged to give 99% of his wealth during his lifetime. http://givingpledge.org/Content/media/My%20Philanthropic%20Pledge.pdf
As you’ll see – that is better than most of the rich.
According tot the Chronicle of Philanthropy (http://philanthropy.com/article/America-s-Generosity-Divide/133775/ ), which I s I think is a fairly objective journal, says that middle income households ($50,000-$75,000) give an AVERAGE of 7.6%, which seems like a lot of people in that income range are indeed tithing, and doing their part.
We will see that this seems to fulfill Proverbs 30:8-9
Keep falsehood and lies far from me;
give me neither poverty nor riches,
but give me only my daily bread.
9 Otherwise, I may have too much and disown you
and say, ‘Who is the LORD?’
Or I may become poor and steal,
and so dishonor the name of my God.
Those making over $100,000 only give an average of 4.2%. In zip codes where those making $200,000 or more make up more than 40% of a zip code (i.e segregating themselves from “normal” people), that rate falls to 2.8%.
They also noted how giving Is different when they factor out religion (i.e. tithing)…liberal states give more to secular organizations. And consider that it seems like the rich are the main funders for liberal causes such as hyper environmentalism, gay & lesbian issues, and Planned Parenthood/abortion. Also, they engage in (perhaps inadvertent) idolatry, when they give to put their name on a building or institution. So that greatly reduces what the rich are REALLy giving to what bible Believing Christians consider true charity.
There are certainly examples of rich Christians fulfilling God’s purpose for their wealth. The owners of Chick-FilA and most recently Hobby Lobby are excellent examples. But they are also rare.
When the rich aren’t tithing , Christian organizations like Lawndale Christian Health Center and Circle urban Ministries can’t reach all the poor they could.
And THAT is why we ask for more taxes on the rich – the government is making up for the needs the church doesn’t SEEM to be able to meet.
If the Koch brothers instead of wasting it on failed politics, invested it in networkers who could connect all Christian resources to help people more efficiently, they could have funded a networker in each of the states for 10 years. But they didn’t. And many SECULAR fiscal conservatives don’t either.
The study from the Chronicle also notes that tax incentives for giving HELP increase giving. Yet secular fiscal conservatives would favor limiting such deductions (arguing that a lower tax rate is a better incentive). So it really speaks to how Christian fiscal conservatives need to be honest about who they are siding with in these economic arguments.
To sum it up…I don’t think Warren Buffet is being all that hypocritical when he wants the rich to be taxed more. There’s proof they aren’t giving (and by extension, not helping). And I would LOVE to see their budget to see why they aren’t tithing. I think ministries like Crown Ministries would have issue with how they spend (or not spend) their money.