NEWS > BUSINESS > WARREN BUFFETT’S EARNINGS PLUMMET TO $62 MILLION LAST YEAR
WARREN BUFFETT’S EARNINGS PLUMMET TO $62 MILLION LAST YEAR
October 13 2011
New York, NY – There was a hope, fleeting and foolish perhaps, that the worst of the economic downturn was behind us. That the worm had turned and that we were finally moving into a period of recovery from one of the worst economic collapses in history. Recent events have shown that simply isn’t the case and that things could actually get much worse in the future.
Rumblings from the economic centres of the world, as well as stagnant growth, have raised concerns that the economy of the globe may be in its worst shape ever, making life very difficult for a lot of people now and even worse in the future. If anyone was believed to be immune to chaos, one would think it would be the world’s billionaires, but according to new data it appears that at least one, Warren Buffett, made barely anything last year, grossing a little over $62 million in 2010.
“W.B. is okay. He’s not totally happy with his earnings last year or over the last few years, but he’s dealing with it. I mean he even came out and said that he’d like to be taxed more, that shows that despite his bad years he is still willing to make the sacrifices needed to keep things running,” said a Buffet insider. “He feels that he really is an example to a lot of people, and that if more people paid
more in taxes the country would be in a much better position, he really does feel that way. He’d like to pay more taxes and he’d like other people to do the same, no matter what they earn.”
Buffett paid taxes at a rate of a little over 17 percent, far less than the average or maximum giving him plenty of wiggle room.
“Buffett’s situation is really symbolic of the issues pressing the world. I mean he only earned a small percentage of his overall wealth in a year which is really out of sorts. No one on the planet would be happy earning 2 percent of their overall worth in a year, that’s not even enough to feed yourself on. It’s really quite pathetic and sad that he has to deal with that,” said Scrape TV Business analyst Ken Green. “Add to that all the money he gave away last year and he’s really suffering. I mean he should have planned a little better and that’s his fault, but everyone suffers that sometimes.”
Buffett gave away a reported $3 billion last year.
“A country’s economic health really does key off the success or failure of the people at the top, and when someone like Buffett starts to falter like this, well that shows how tough the situation has become. I mean he won’t be losing his houses anytime soon, but that could happen if things get much worse. There’s only so much money to go around after all and he’s only got a chunk of it,” continued Green. “Just paying more taxes won’t necessarily help the overall situation. Higher taxes mean less spending money which in turn hurts jobs growth which in turn hurts taxation, at least at the lower levels. I mean I’m sure that Buffett and other billionaires have curbed their spending in these economic climes, but if their tax rates increase they will be forced to do so again and that won’t help anyone. Well it might, but it might not.”
Buffett also bought no private planes last year, the first time in more than a decade he has gone without.
William Ashford, Business Correspondent