What Buffett Does to Limit Taxes at Berkshire

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March 19 (Bloomberg) -- Warren Buffett showed last week how adept he is at lowering his company’s payments to the U.S. Betty Liu reports on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

Latest deal for berkshire hathaway and graham holdings, saying that the extent of the warren buffett tax knowledge, avoiding on a billion dollars, swapping shares, the billionaire took advantage of tax laws to reduce the irs stake despite the public stance the corporations should pay their share of taxes.

Betty liu is in san francisco today.

You know, betty, i just have to say -- at what point does he put his money where his mouth is?

He is out there saying that this is not good.

He has certainly benefited from carried interest.

And he has complained about it.

So, why not just pay more tax?

I agree.

I don't know if you remember, but years ago we asked that question to him.

We said that if you do not like the tax law, don't feel you are paying enough, just give more of your money to the government.

He said that that was not the way that it works.

We have to change the existing law so that everyone plays at the same rule.

But we would not be talking about this story if it was not for the fact that yes, he himself pays a lower tax rate.

He said himself that he takes advantage of the same laws we were talking about.

Of course in this instance it works as well.

He swaps holdings for essentially one third of berkshire shares.

They also have an existing business, that miami television station that he got a little bit of cash for.

Altogether he paid less in that transaction manager he were to sell the shares on the open market.

It is legal.

The tax law exists in such a way that makes it an official for him on the individual level and on the corporate level, shareholders in terms of them being able to benefit.

It is all perfectly fine.

It gets to the issue, really, one he has talked at length about, what are we doing in terms of our corporate taxation structure?

Companies, individuals are benefiting so extremely.

Should that change?

He absolutely does think that it should change.

He thinks the wealthy should pay a higher tax rate.

He says the companies that are complaining the corporate tax laws are too high should stop complaining and pay more.

Remember, at the same time he runs a public company.

Right.

Ceo of a public company.

As part of being a ceo, he has a fiduciary reasoning to run the company efficiently and is as beneficial to shareholders.

Those tax laws exist, trish, and he is going to take advantage of them.

This is not the first time he has structured a deal in this way.

He did it with conoco phillips.

He did it with white mountains

This text has been automatically generated. It may not be 100% accurate.

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