Berkshire Hathaway gained $29B from the new tax law

[Wuwei]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

 

[Vandalshandle]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

...and, of course, they do not produce anything, so none of that money will create jobs. But it will result in tax shortfalls, that the working people will have to cough up.

 

[Toddsterpatriot]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations.

Actually, all $65 billion came from operations.......obviously.

 

[Weatherman2020]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

Dufus thinks the tax law went into effect in 2017.

 

[Toddsterpatriot]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

...and, of course, they do not produce anything, so none of that money will create jobs. But it will result in tax shortfalls, that the working people will have to cough up.

...and, of course, they do not produce anything,

They produce lots of stuff.

For many years, this letter has described the activities of Berkshire’s many other businesses. That discussion has become both repetitious and partially duplicative of information regularly included in the 10-K that follows the letter. Consequently, this year I will give you a simple summary of our dozens of non-insurance businesses. Additional details can be found on pages K-5 – K-22 and pages K-40 – K-50.

Viewed as a group – and excluding investment income – our operations other than insurance delivered pretax income of $20 billion in 2017, an increase of $950 million over 2016. About 44% of the 2017 profit came from two subsidiaries. BNSF, our railroad, and Berkshire Hathaway Energy (of which we own 90.2%). You can read more about these businesses on pages K-5 – K-10 and pages K-40 – K-44.

Proceeding down Berkshire’s long list of subsidiaries, our next five non-insurance businesses, as ranked by earnings (but presented here alphabetically) Clayton Homes, International Metalworking Companies, Lubrizol, Marmon and Precision Castparts had aggregate pre-tax income in 2017 of $5.5 billion, little changed from the $5.4 billion these companies earned in 2016.

The next five, similarly ranked and listed (Forest River, Johns Manville, MiTek, Shaw and TTI) earned $2.1 billion last year, up from $1.7 billion in 2016.

http://www.berkshirehathaway.com/letters/2017ltr.pdf

Page 8

 

[Vandalshandle]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

...and, of course, they do not produce anything, so none of that money will create jobs. But it will result in tax shortfalls, that the working people will have to cough up.

...and, of course, they do not produce anything,

They produce lots of stuff.

For many years, this letter has described the activities of Berkshire’s many other businesses. That discussion has become both repetitious and partially duplicative of information regularly included in the 10-K that follows the letter. Consequently, this year I will give you a simple summary of our dozens of non-insurance businesses. Additional details can be found on pages K-5 – K-22 and pages K-40 – K-50.

Viewed as a group – and excluding investment income – our operations other than insurance delivered pretax income of $20 billion in 2017, an increase of $950 million over 2016. About 44% of the 2017 profit came from two subsidiaries. BNSF, our railroad, and Berkshire Hathaway Energy (of which we own 90.2%). You can read more about these businesses on pages K-5 – K-10 and pages K-40 – K-44.

Proceeding down Berkshire’s long list of subsidiaries, our next five non-insurance businesses, as ranked by earnings (but presented here alphabetically) Clayton Homes, International Metalworking Companies, Lubrizol, Marmon and Precision Castparts had aggregate pre-tax income in 2017 of $5.5 billion, little changed from the $5.4 billion these companies earned in 2016.

The next five, similarly ranked and listed (Forest River, Johns Manville, MiTek, Shaw and TTI) earned $2.1 billion last year, up from $1.7 billion in 2016.

http://www.berkshirehathaway.com/letters/2017ltr.pdf

Page 8

Well, Damn! Since I own stock, I am a producer! Imagine that! Even though i haven't worked a lick in 12 years!

 

[Weatherman2020]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

...and, of course, they do not produce anything, so none of that money will create jobs. But it will result in tax shortfalls, that the working people will have to cough up.

...and, of course, they do not produce anything, so none of that money will create jobs. But it will result in tax shortfalls, that the working people will have to cough up.

Like Google and Yahoo?

 

[usmbguest5318]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

Yes, wealthy people are very well aware that Trump's tax code changes made them a whole lot richer. Indeed, I suspect there are no "one percenters" (folks having household incomes of ~$500K+) who think they saved as much or more in taxes -- which are cash savings, not "paper" savings -- than the average American earns all year.

 

[Darkwind]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations.

Actually, all $65 billion came from operations.......obviously.

Yes. Saying that the tax cut made people more wealthy is a fundamental flaw in their view of what taxation is. Those who are allowed to keep more of their own wealth are not wealthier, for they earned the same amount regardless of how much the government confiscated.

 

[Wuwei]

Yes. Saying that the tax cut made people more wealthy is a fundamental flaw in their view of what taxation is. Those who are allowed to keep more of their own wealth are not wealthier, for they earned the same amount regardless of how much the government confiscated.

What you say is true in a sense but it's just nit picking words. If I got a similar percentage benefit, I would be happy because my buying power would increase, and that's what counts.

 

[Darkwind]

Yes. Saying that the tax cut made people more wealthy is a fundamental flaw in their view of what taxation is. Those who are allowed to keep more of their own wealth are not wealthier, for they earned the same amount regardless of how much the government confiscated.

What you say is true in a sense but it's just nit picking words. If I got a similar percentage benefit, I would be happy because my buying power would increase, and that's what counts.

It is much more than nitpicking words.

It strikes directly at the heart of the attitude of people and how they look at government. Government reduces taxes makes people richer is an attitude that the earnings and wealth belonged to the government to begin, when in fact, it is the other way around.

I make a million dollars in one year and government taxes it at the rate of 36%. That is 360k dollars.

The next year, I make a million dollars and the government taxes it at a reduced rate of 30 percent. that is 300k dollars.

I still made the million dollars. That is My wealth earnings for that year, regardless of what is taken.

The same when discussing rights. I have them not because the government gives them to Me but in spite of government. It is the duty of government to show just cause (due process) in trying to take them from Me.

 

[Wuwei]

It is much more than nitpicking words.

It strikes directly at the heart of the attitude of people and how they look at government. Government reduces taxes makes people richer is an attitude that the earnings and wealth belonged to the government to begin, when in fact, it is the other way around.

I make a million dollars in one year and government taxes it at the rate of 36%. That is 360k dollars.

The next year, I make a million dollars and the government taxes it at a reduced rate of 30 percent. that is 300k dollars.

I still made the million dollars. That is My wealth earnings for that year, regardless of what is taken.

The same when discussing rights. I have them not because the government gives them to Me but in spite of government. It is the duty of government to show just cause (due process) in trying to take them from Me.

Your view seems to be a popular one that taxation is equivalent to confiscation. I look at taxation as an inevitable part of living in a society where many things such as the military and infrastructure are shared, and taxes are a way of paying for it. Otherwise I don't see any other way a country can hang together. Do you have any alternate ideas?

 

[Toddsterpatriot]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

...and, of course, they do not produce anything, so none of that money will create jobs. But it will result in tax shortfalls, that the working people will have to cough up.

...and, of course, they do not produce anything,

They produce lots of stuff.

For many years, this letter has described the activities of Berkshire’s many other businesses. That discussion has become both repetitious and partially duplicative of information regularly included in the 10-K that follows the letter. Consequently, this year I will give you a simple summary of our dozens of non-insurance businesses. Additional details can be found on pages K-5 – K-22 and pages K-40 – K-50.

Viewed as a group – and excluding investment income – our operations other than insurance delivered pretax income of $20 billion in 2017, an increase of $950 million over 2016. About 44% of the 2017 profit came from two subsidiaries. BNSF, our railroad, and Berkshire Hathaway Energy (of which we own 90.2%). You can read more about these businesses on pages K-5 – K-10 and pages K-40 – K-44.

Proceeding down Berkshire’s long list of subsidiaries, our next five non-insurance businesses, as ranked by earnings (but presented here alphabetically) Clayton Homes, International Metalworking Companies, Lubrizol, Marmon and Precision Castparts had aggregate pre-tax income in 2017 of $5.5 billion, little changed from the $5.4 billion these companies earned in 2016.

The next five, similarly ranked and listed (Forest River, Johns Manville, MiTek, Shaw and TTI) earned $2.1 billion last year, up from $1.7 billion in 2016.

http://www.berkshirehathaway.com/letters/2017ltr.pdf

Page 8

Well, Damn! Since I own stock, I am a producer! Imagine that! Even though i haven't worked a lick in 12 years!

I didn't mention their stock holdings, just their wholly owned subsidiaries.

 

[Vandalshandle]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

...and, of course, they do not produce anything, so none of that money will create jobs. But it will result in tax shortfalls, that the working people will have to cough up.

...and, of course, they do not produce anything,

They produce lots of stuff.

For many years, this letter has described the activities of Berkshire’s many other businesses. That discussion has become both repetitious and partially duplicative of information regularly included in the 10-K that follows the letter. Consequently, this year I will give you a simple summary of our dozens of non-insurance businesses. Additional details can be found on pages K-5 – K-22 and pages K-40 – K-50.

Viewed as a group – and excluding investment income – our operations other than insurance delivered pretax income of $20 billion in 2017, an increase of $950 million over 2016. About 44% of the 2017 profit came from two subsidiaries. BNSF, our railroad, and Berkshire Hathaway Energy (of which we own 90.2%). You can read more about these businesses on pages K-5 – K-10 and pages K-40 – K-44.

Proceeding down Berkshire’s long list of subsidiaries, our next five non-insurance businesses, as ranked by earnings (but presented here alphabetically) Clayton Homes, International Metalworking Companies, Lubrizol, Marmon and Precision Castparts had aggregate pre-tax income in 2017 of $5.5 billion, little changed from the $5.4 billion these companies earned in 2016.

The next five, similarly ranked and listed (Forest River, Johns Manville, MiTek, Shaw and TTI) earned $2.1 billion last year, up from $1.7 billion in 2016.

http://www.berkshirehathaway.com/letters/2017ltr.pdf

Page 8

Well, Damn! Since I own stock, I am a producer! Imagine that! Even though i haven't worked a lick in 12 years!

I didn't mention their stock holdings, just their wholly owned subsidiaries.

Owning and trading stock does not increase the GNP. All it does is make some people money, at the expense of other people's losses. I have nothing against that. i personally enjoy making money by doing nothing but occasionally pressing a few keys on my computer. But, increasing capital in the hands of an investment company is not producing jobs. i guess that one could make the argument that money in the hands of a venture capitalist does produce jobs. Warren is not a venture capitalist.

 

[Toddsterpatriot]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

...and, of course, they do not produce anything, so none of that money will create jobs. But it will result in tax shortfalls, that the working people will have to cough up.

...and, of course, they do not produce anything,

They produce lots of stuff.

For many years, this letter has described the activities of Berkshire’s many other businesses. That discussion has become both repetitious and partially duplicative of information regularly included in the 10-K that follows the letter. Consequently, this year I will give you a simple summary of our dozens of non-insurance businesses. Additional details can be found on pages K-5 – K-22 and pages K-40 – K-50.

Viewed as a group – and excluding investment income – our operations other than insurance delivered pretax income of $20 billion in 2017, an increase of $950 million over 2016. About 44% of the 2017 profit came from two subsidiaries. BNSF, our railroad, and Berkshire Hathaway Energy (of which we own 90.2%). You can read more about these businesses on pages K-5 – K-10 and pages K-40 – K-44.

Proceeding down Berkshire’s long list of subsidiaries, our next five non-insurance businesses, as ranked by earnings (but presented here alphabetically) Clayton Homes, International Metalworking Companies, Lubrizol, Marmon and Precision Castparts had aggregate pre-tax income in 2017 of $5.5 billion, little changed from the $5.4 billion these companies earned in 2016.

The next five, similarly ranked and listed (Forest River, Johns Manville, MiTek, Shaw and TTI) earned $2.1 billion last year, up from $1.7 billion in 2016.

http://www.berkshirehathaway.com/letters/2017ltr.pdf

Page 8

Well, Damn! Since I own stock, I am a producer! Imagine that! Even though i haven't worked a lick in 12 years!

I didn't mention their stock holdings, just their wholly owned subsidiaries.

Owning and trading stock does not increase the GNP. All it does is make some people money, at the expense of other people's losses. I have nothing against that. i personally enjoy making money by doing nothing but occasionally pressing a few keys on my computer. But, increasing capital in the hands of an investment company is not producing jobs. i guess that one could make the argument that money in the hands of a venture capitalist does produce jobs. Warren is not a venture capitalist.

Owning and trading stock does not increase the GNP.

Who said it did? Where?
Berkshire Hathaway produces things,
as can be seen by looking at the companies that make up Berkshire Hathaway.

 

[usmbguest5318]

The rich get richer. This is Buffet's letter to shareholders

http://www.berkshirehathaway.com/letters/2017ltr.pdf

... 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations. The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.

The $65 billion gain is nonetheless real – rest assured of that. But only $36 billion came from Berkshire’s operations.

Actually, all $65 billion came from operations.......obviously.

Yes. Saying that the tax cut made people more wealthy is a fundamental flaw in their view of what taxation is. Those who are allowed to keep more of their own wealth are not wealthier, for they earned the same amount regardless of how much the government confiscated.

While agree they may not have earned more 2017 income because of the HR-1-2018, wealth is not a function of what what one earns, which is income, not wealth. Wealth is a function of ones retained earnings and one's actual retention of them as assets. One who earns a million dollars in a year and spends that million is not made wealthy or wealthier by having a million dollar income.