An octogenerian of my acquaintance startled me the other day by declaring: Warren Buffett wants to kick me out of my house. What?, I replied in disbelief, Warren Buffett, the brilliant investor, universally revered, adored by the financial press who consider his every syllable a delphic gem, and who has promised to donate his billions to the Gates charities? Yes, the very same, my friend replied ruefully. and the following is his tale:
When Arnold Schwartznegger was running for the California governorship, he imported Warren Buffett to give his campaign, he hoped, some financial patina. Mr. Buffett imediately started fulminating about how the mansion he owned in Laguna Hills, California, was taxed way below his, in his words, rather humble home in Omaha Nebraska. He blamed this discrepancy on proposition 13 which the voters forced on the California legislature creating a ceiling on property taxes based on the original purchase price.
Many years ago my friend had paid about $80k for his 1700 square foot home in a modest ocean side community. The home was now valued at $1 million and Buffet stated that my friend and those similarily situated should pay taxes on the present market value which would raise the property tax to $20,000.00 per year, an increase of$18,000 and which would force my friend to sell the home he has inhabited for 30 years thus leaving him to seek shelter in some modest condominium in a substantially less pleasant area.
Mr. Buffett did not get his way. Mr. Schwartznegger, knowing that any politician in California even casually uttering the words proposition 13 is immediately impeached or worse, sent Mr. Buffett packing. However Mr. Buffett has continued to push his agenda. He has said he could not vote for a Republican because it would be against his social conscience. His name is now evoked by all the tax raisers in Congress. Even Warren Buffett says that and they cry as though we should genuflect and take Mr. Buffettss views as sacrosanct.
Let us not forget that Mr. Buffetts social conscience has not stopped him from pushing his calorie loaded hot dogs with cheese spread , his cavity creating chocolates , his Miller Beer, and his steaks among other health foods.
Let us also remember that the cash cow of his Berkshire Hathaway empire is General Re, the capo di capo of all re-insurance companies which backs the bets of other insurance companies for a slice of the pie. Warren Buffetts social conscience should not begin with the contents of YOUR wallet.
