President Trump’s tax plan is going to be a major benefit for wealthy shareholders in Warren Buffett’s holding company, the billionaire said Saturday.
The Hill reported Buffet said Trump’s proposal to slash the corporate tax rate could mean at least an additional $9.5 billion for his investors.
“The deferred taxes that are applicable to unrealized gains on securities would all be applicable to us,” Buffett said, according to the report. “We have $90 or $95 billion in gains, and our owners, dollar for dollar, will participate in that. If the rate were to drop 10 percent, that $9.5 billion is real.”
The administration released a one-page fact sheet on the president’s tax proposal last week that lacked many specifics, but did mention it would drop the business tax rate from the 35 percent to 15 percent.
Buffett, who backed Hillary Clinton in the 2016 presidential election, said Trump’s proposal would likely impact individual businesses differently.
“It’s certain that some of a lower corporate rate would be competed away, and it’s sure that some of it would incur to the benefit of shareholders,” he said. “It’s very company specific in how that plays out.”
