Warren Buffet is arguably the most famous investor in the United States, and thousands flock to his home town to see his yearly address. His company owns GEICO, railroads, a chocolate company (Sees Candy) as well as other major companies. When Warren talks, the press listens and reports his every word.
Recently, Warren talked about his opinion on what has harmed our economy the most, even though we are considered to be probably the most successful economy in the world.
If you guessed taxes, you are wrong. The continuing mantra from the right seems to always lead to lower taxes, and tax cuts for those who need it the least, the super wealthy. On the other hand, there is a tax that we are required to pay, also known as health insurance.
This tax is not regressive, unless you need a subsidy from the government which means you go on the exchange and choose one of the few plans left that participate on these exchange.
The NY Times recently reported on Mr. Buffet’s opinion that healthcare costs are killing the economy. Consider that the higher deductibles, higher costs to insure your family and high cost of any disease can easily harm a family on the lower end of the income spectrum. Companies are paying more for insurance which cuts into their bottom lines, even if they are self insured.
For those of you who are middle or upper class, you may need to pay a large deductible towards your yearly healthcare costs before your insurance pays for anything. This is money you may have spent on something else. The healthcare tax cuts both ways; in your businesses bottom line and yours.
Check out the NY Times article here.
Forget Taxes, Warren Buffett Says. The Real Problem Is Health Care.
Andrew Ross Sorkin
OMAHA — “The tax system is not crippling our business around the world.”
That was Warren E. Buffett, the chairman and chief executive of Berkshire Hathaway, over the weekend at the company’s annual meeting, known as “Woodstock for capitalists.”
Mr. Buffett, in a remarkably blunt and pointed remark, implicitly rebuked his fellow chief executives, who have been lobbying the Trump administration and Washington lawmakers to lower corporate taxes.
In truth, Mr. Buffett said, a specter much more sinister than corporate taxes is looming over American businesses: health care costs. And chief executives who have been maniacally focused on seeking relief from their tax bills would be smart to shift their attention to these costs, which are swelling and swallowing their profits.