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The billionaire has talked several times about how corporations should be paying higher taxes.
The famed investor shared inBerkshires 2024 Annual Letterthat the company paid $26.8 billion to the IRS last year.
That comes to roughly 5% of what all of corporate America paid to the government.
Buffett lamented that this wasnt always the case for Berkshire, especially before he acquired it.
He also singled out American tech giants as not paying their fair share in taxes.
He says as much in the annual letter to his shareholders.
Spend it wisely, Buffett told Uncle Sam.
GOBankingRates further breaks downthe Oracle of Omahas philosophybehind paying high taxes.
Its a simple mentality like this that is easy to understand but difficult to implement in practice.
However, he said that he will continue to invest mostly in U.S. equities.
Paper money can see its value evaporate if fiscal folly prevails, he said in the annual letter.
Fixed-coupon bonds provide no protection against runaway currency.
Reinvesting vs. Consuming
Making regular reinvestments has helped Berkshirepay higher taxesthan other corporations.
Buffett explains that shareholders contributed to the high tax bill through foregoing dividends.
Since Berkshire didnt have to pay dividends, the company could reinvest money into various initiatives.
It was essentially short-term pain for long-term gain, and it certainly worked out well for long-term investors.
Saving money makes it easier to grow a business, and that results in more taxable revenue.
Reinvesting instead of consuming strengthenscompanies and countriesin the long run.
It allows the magic of compounding to work favorably, create jobs and generate more revenue for the government.
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