Warren Buffett, Robber Baron?
7th December 2010
Did you know that the life insurance lobby is actively lobbying to restore the estate tax?
Why would the life insurance industry care about that? It turns out that ten percent of life insurance industry revenue is related to the estate tax. Wealthy people take out life insurance in order to reduce estate taxes because when you die, your life insurance payout doesn’t count as part of your estate.
Did you know that Warren Buffett owns six life insurance companies? Did you know he supports the estate tax? You do now.
Whenever someone takes a position that is directly contrary to his or her own economic interest (like rich people plumping for high taxes), there are only two possibilities: The person is a moral giant OR there is something going on that is not immediately apparent but accruing to the advantage of that person.