Warren Buffet's presidential endorsement

[RandomGuy]

Sure I do...do you understand what a capital gains tax is...stupid ? Obviously you don't if you think Buffet transferring his wealth condtionally to a charity that he himself is on the board of trustees for, and giving less than he would have paid in taxes, totally in any way he chooses, is a charitable contribution.


Do you understand stupid that the genesis of this thread is based on comments Buffet himself has made about taxes, about the rich paying taxes...and why he endorses candidate X.

Do you understand stupid that this so called charity is 37billion dollars, 37 billion dollars that he still controls, that he has sheltered from being taxed?

Do you undersatand you ignorant dumb incomparably stupid ?








Sorry, but you agreeing with Random guy changes nothing...and I find it amusing how stupid people think multiple stupid people in agreement with one another makes them less stupid.


Or IOW...I wipe my ass with your ignorant, uninformed opinion.

Your mother was a hampster and your father smells of elderberries.
I wave my private parts at your aunties.
I fart in your general direction.

Now go away or I will taunt you a second time, you silly english kaniggits!

Because if you call somebody a "stupid " enough, that will magically make you right.

This reminds me nothing so much as a Monty Python skit. I can see the spittle on whottt's computer screen from here.

[whottt]

No, my overestimation of your financial responsibility lost it --

What makes you think I'm financially irresponsible?


I'd say having all your net worth in assets that can be seized, or in a variable rate mortgage and lending ins utions that are on the verge of going bankrupt, is irresponsible...


Besides, ac ulation of wealth is over-rated and illusory.

knowing about your irresponsibility is a bonus that's better than any worthless vote bet anyway.

LOL because asking was too difficult?

Because...I've mentioned my debt before...countless times?


Now you're going to have to spend money on gas to go out and vote for a candidate you don't even like...all because you didn't ask a simple question...bad move financially. That's assuming you do the honorable thing of course...

[RandomGuy]

Wiki:

[edit] Lifespan
In October 2006 the Bill & Melinda Gates Foundation was split into two en ies: the Bill & Melinda Gates Foundation Trust, which manages the endowment assets and the Bill & Melinda Gates Foundation, which "... conducts all operations and grantmaking work, and it is the en y from which all grants are made."[30][31] Also announced was the decision to "... spend all of [the Trust's] resources within 50 years after Bill's and Melinda's deaths."[32][33][34][35] This would close the Bill & Melinda Gates Foundation Trust and effectively end the Bill & Melinda Gates Foundation. In the same announcement it was reiterated that Warren Buffett "... has stipulated that the proceeds from the Berkshire Hathaway shares he still owns at death are to be used for philanthropic purposes within 10 years after his estate has been settled."[32]
The plan to close the Foundation Trust is in contrast to most large charitable foundations that have no set closure date.[citation needed] This is intended to lower administrative costs over the years of the Foundation Trust's life and ensure that the Foundation Trust not fall into a situation where the vast majority of its expenditures are on administrative costs, including salaries, with only token amounts contributed to charitable causes.[33]

IOW...anyone else will get that money over their dead bodies

They'll control it for the rest of their lives. And it's not like they were ever going to live long enough to spend it anyway...


It's simply hording it paying as little tax on it as possible, for the rest of their lives.


Whether or not they are spending it better than the US Govt would is open to debate...but one that cannot be argued is that they aren't paying taxes on it and a great deal of it is going outside the country.


And they still control it.[/QUOTE]

Good enough for me.

1) They already paid income taxes on the money given to the trust, even if it was simply at the capital gains tax rate.

Yes or no?

[whottt]

This credit card debt revelation is a prime example.

It's fun watching him spite his face.

What makes you think my credit card debt is anything outrageous?


Could be that my credit card debt is not much at all relavtive to the average American and it's my lack of assets that are responsible for the debt.


Edit: That should read my lack of seizable assets.

[ChumpDumper]

What makes you think I'm financially irresponsible?


I'd say having all your net worth in assets that can be seized, or in a variable rate mortgage and lending ins utions that are on the verge of going bankrupt, is irresponsible...


Besides, ac ulation of wealth is over-rated and illusory.

LOL because asking was too difficult?

Because...I've mentioned my debt before...countless times?

I don't read all your posts. Sorry. This will be remembered though.

Now you're going to have to spend money on gas to go out and vote for a candidate you don't even like...all because you didn't ask a simple question...bad move financially. That's assuming you do the honorable thing of course...

I was going to vote anyway, and I walk to Hill Elementary to vote.

[RandomGuy]

I've got 100 dollars invested in a nice investment that returns me 7 dollars per year.

My tax on that 7 dollars is 3 dollars.

Now, because I hate taxes and am greedy, I will put that money into this special trust.

That hundred dollars now makes the same 7 dollars, but I am required to give away 5 dollars of that 100 every year.

Ending money in trust:
$102

Ending money in normal investment, after taxes:
$104

If I am greedy, which option will I pick?

[KenMcCoy]

1) They already paid income taxes on the money given to the trust, even if it was simply at the capital gains tax rate.

Yes or no?

Charitable contributions are usually deductible from income...so that would be a no.

[whottt]

Good enough for me.

1) They already paid income taxes on the money given to the trust, even if it was simply at the capital gains tax rate.

Yes or no?

I'm saying no.


I don't know about Gates, but I don't believe Buffet paid a dime, all he did was transfer shares, pretty sure Capital Gains tax is waived on stock transfers to charitable organizations, 100% write off....may depend on where the transfer is done though.

On top of that... I believe he was able to get a substantial tax write off on the entire transfer for his personal income tax.


One thing is beyind all doubt...he's not paying any taxes in it now, and he still controls it, and he can still get it back.


He didn't give anything away.

[whottt]

Charitable contributions are usually deductible from income...so that would be a no.

Plus I don't think he sold the stock...I think he just transferred it to the Gates foundation.

It's basically a rollover account for personal wealth.

Must be nice

[RandomGuy]

Charitable contributions are usually deductible from income...so that would be a no.

So he didn't pay any taxes on the income for the assets in the first place?

The charitable contribution gets you a deduction on your income taxes but you have still paid taxes on the income that produced the asset.

Example:

Year one, I earn $100 and pay 20 dollars in taxes on that, leaving $80.

Year two, give $80 to charity and earn $100, making my taxable income $20, and pay $2 in taxes on that income.

In the end I have avoided a lot of taxes, but now only have $98 as opposed to $160 if I had not given any money to charity.

[whottt]

I was going to vote anyway, and I walk to Hill Elementary to vote.

So you still have to needlessly spend money on food to get the carbs for that walk...plus you'll be increasing your chances of skin cancer if you walk in the sun(unless of course you SPEND on Sunscreen)...so basically you're spending money and risking your health...all because you simply didn't ask.

And I'm the irresponsible one?


Sounds like a prime candidate for a variable rate mortgage if ever there was one.

[RandomGuy]

I'm saying no.

I don't know about Gates, but I don't believe Buffet paid a dime, all he did was transfer shares, pretty sure Capital Gains tax is waived on stock transfers to charitable organizations, 100% write off....may depend on where the transfer is done though.

On top of that... I believe he was able to get a substantial tax write off on the entire transfer for his personal income tax.

One thing is beyind all doubt...he's not paying any taxes in it now, and he still controls it, and he can still get it back.

He didn't give anything away.

He gets to write off his basis in the stock (what he paid for it in un-inflation adjusted dollars).

He does indeed "control" it in the sense that he can decide or direct how it is given away, but it cannot benefit him directly.

He cannot go out and buy a house or a car, or even a candybar with the assets given to the trust. He could draw a reasonable stipend/salary as a trustee. Given that his CEO salary for Berkshire is $100,000, I don't see that as being a large source of income.

How do you know he can legally get it back?

[ChumpDumper]

So you still have to needlessly spend money on food to get the carbs for that walk...plus you'll be increasing your chances of skin cancer if you walk in the sun(unless of course you SPEND on Sunscreen)...so basically your spending money and risking your healthy...all because you simply didn't ask.

I eat and walk and go outside every day.

Sounds like a prime candidate for a variable rate mortgage if ever there was one.

You mean an easy credit card offer.

Our home has a fixed mortgage, but the place itself is apparently illusory.

[2centsworth]

Originally Posted by RandomGuy


Good enough for me.

1) They already paid income taxes on the money given to the trust, even if it was simply at the capital gains tax rate.

Yes or no?

I can't tell you enough how screwed up this post is.

First, they already paid income taxes on the assets given to the trust even if it was a capital gains tax. WHAT? You pay income taxes on income and capital gains on Assets.

Second, assets transfered to a charitable trust and then sold inside the trust incur ZERO TAXES!

and you call yourself a genius?

[KenMcCoy]

So he didn't pay any taxes on the income for the assets in the first place?

The charitable contribution gets you a deduction on your income taxes but you have still paid taxes on the income that produced the asset.

Example:

Year one, I earn $100 and pay 20 dollars in taxes on that, leaving $80.

Year two, give $80 to charity and earn $100, making my taxable income $20, and pay $2 in taxes on that income.

In the end I have avoided a lot of taxes, but now only have $98 as opposed to $160 if I had not given any money to charity.

Since he is giving away his stocks it is different...remember that you don't realize income on gains made in stocks until you cash them in. Plus he divied up the contribution (it wasn't all 37 billion at one time)...I'm sure he did this to stay under the 50% of his Adjusted Gross Income allowable deduction amount.

He is basically giving it to charity to avoid being taxed on it.

From the IRS website:

Example.
Your adjusted gross income is $50,000. During the year, you gave capital gain property with a fair market value of $15,000 to a 50% limit organization. You do not choose to reduce the property's fair market value by its appreciation in value. You also gave $10,000 cash to a qualified organization that is not a 50% limit organization. The $15,000 gift of property is subject to the special 30% limit. The $10,000 cash gift is subject to the other 30% limit. Both gifts are fully deductible because neither is more than the 30% limit that applies ($15,000 in each case) and together they are not more than the 50% limit ($25,000).

http://www.irs.gov/publications/p526/ar02.html#d0e3121

[ChumpDumper]

Now you're going to have to spend money on gas to go out and vote for a candidate you don't even like.

Let me just clarify this. I like McCain. I liked him better before he before he became such a pandering flip-flopper to get the Republican nomination -- but I can hope that when he is elected, he goes back to being a mavrick again and doesn't feel beholden to the nutty right. Some of his choices of advisers are a bit worrying though.

[whottt]

He gets to write off his basis in the stock (what he paid for it in un-inflation adjusted dollars).

And if it was a stock transfer, which I believe it was...he doesn't have to pay a dime in Capital Gains Tax.

IIRC we currently have the lowest Capital Gains Tax in history, what is it right now in his bracket...8% maybe?

And he won't have pay that to the full extrent...he won't pay any of it to the Government...he decides entirely what it is spent on...much of it outside the US.

IOW...none of it is going to taxes. None of it is going to the US Govt. That's the entire point...

He does indeed "control" it in the sense that he can decide or direct how it is given away, but it cannot benefit him directly.

Only if you use the narrowest definition of the word "benefit"

He cannot go out and buy a house or a car, or even a candybar with the assets given to the trust.

I am sure Buffet loses sleep at night worrying about how he will get a candybar or a new car.

You're hysterical dude.


Where is the common sense?

He could draw a reasonable stipend/salary as a trustee. Given that his CEO salary for Berkshire is $100,000, I don't see that as being a large source of income.

It's not intended to be a source of income....

How do you know he can legally get it back?

Because he hasn't "legally" given it all to them yet.

[2centsworth]

Originally Posted by RandomGuy

He gets to write off his basis in the stock (what he paid for it in un-inflation adjusted dollars).

where in the are you getting this from?

[whottt]

Because he hasn't "legally" given it all to himself yet.

Fixed

[KenMcCoy]

where in the are you getting this from?

I think he's halfway through Accounting Principles I.

[2centsworth]

he knows enough to be dangerous.

[whottt]

I eat and walk and go outside every day.

You'll have to do it extra now.

You mean an easy credit card offer.

You want to know what's funny?

I occupy the lowest tax bracket of anyone in this thread, I have the lowest net worth...

But without a doubt I have the best credit rating(probably not going to be worth anything shortly though)

My mentor on finance was Marshall Loeb:

Never put your own money at risk.


And I don't have a dime's worth of seizable assets.

Our home has a fixed mortgage, but the place itself is apparently illusory.

The building's not illusory...that it's "your" home is the illusion.

Of course it's illusory...

[Shastafarian]

You want to know what's funny?

I occupy the lowest tax bracket of anyone in this thread, I have the lowest net worth...

But without a doubt I have the best credit rating(probably not going to be worth anything shortly though)

My mentor on finance was Marshall Loeb:

Never put your own money at risk.


And I don't have a dime's worth of seizable assets.

Man you should win the nobel prize for economics! You're a genius. Please oh merciful whottt, teach us your ways.

[whottt]

He is basically giving it to himself to avoid being taxed on it.

Fixed

[ChumpDumper]

You'll have to do it extra now.

As I said, I was already going to vote. Now you are trying to say that walking is a bad thing. Hilarious. This is why I enjoy my discussions with whottt. He gets flustered and starts saying things like walking is bad and undesirable.

You want to know what's funny?

I occupy the lowest tax bracket of anyone in this thread, I have the lowest net worth...

But without a doubt I have the best credit rating

What does that even mean?

My mentor on finance was Marshall Loeb:

Never put your own money at risk.

Marshall Loeb has money.

The building's not illusory...that it's "your" home is the illusion.

Of course it's illusory...

Aren't you going into real estate? Or was that an illusion too?