April 27, 2024

In Letter to Congressman, Buffett Claims 17.4% Tax Rate

The figure represent 17.4 percent of his $39.8 million in taxable income, a percentage he has repeatedly said is too low compared to what his own staff members pay.

Mr. Buffett caused an uproar in August when he said the wealthy should be subject to a higher rate of tax. The White House has taken on his challenge and proposed a “Buffett Rule” that would raise levies on the richest people.

After Mr. Buffett’s suggestion, a Republican congressman, Tim Huelskamp of Kansas, sent Mr. Buffett a letter in late September calling on him to release his tax returns.

Mr. Huelskamp sent a second letter reiterating the request this month, and promising to release his own returns if Mr. Buffett did.

Mr. Buffett, the chief executive of the conglomerate Berkshire Hathaway, responded in kind on Tuesday, according to a copy of the letter. Mr. Buffett did not release his full return, though, as many have called for him to do.

In the letter, Mr. Buffett reiterated what he saw as the inequality of his paying a rate in the teens when most people who work for him pay a rate in the 30 percent range.

Mr. Buffett also called on other very wealthy Americans to release their own returns.

“If you could get other ultra-rich Americans to publish their returns along with mine, that would be very useful to the tax dialogue and intelligent reform,” Mr. Buffett said. “I stand ready and willing — indeed eager — to participate in this exercise.”

Mr. Huelskamp, in a statement Wednesday, slammed Mr. Buffett’s letter as inadequate and again called on him to either release his full returns or voluntarily give more tax money to the federal government.

Article source: http://feeds.nytimes.com/click.phdo?i=0db897f8851e36ab67ad68a359d51ccc

The Champions: A Businessman in Congress Helps His District and Himself

Just a few steps down the hall, Representative Darrell Issa, the powerful Republican congressman, runs the local district office where his constituents come for help.

The proximity of the two offices reflects Mr. Issa’s dual careers, a meshing of public and private interests rarely seen in government.

Most wealthy members of Congress push their financial activities to the side, with many even placing them in blind trusts to avoid appearances of conflicts of interest. But Mr. Issa (pronounced EYE-suh), one of Washington’s richest lawmakers, may be alone in the hands-on role he has played in overseeing a remarkable array of outside business interests since his election in 2000.

Even as he has built a reputation as a forceful Congressional advocate for business, Mr. Issa has bought up office buildings, split a holding company into separate multibillion-dollar businesses, started an insurance company, traded hundreds of millions of dollars in securities, invested in overseas funds, retained an interest in his auto-alarm company and built up a family foundation.

As his private wealth and public power have grown, so too has the overlap between his private and business lives, with at least some of the congressman’s government actions helping to make a rich man even richer and raising the potential for conflicts.

He has secured millions of dollars in Congressional earmarks for road work and public works projects that promise improved traffic and other benefits to the many commercial properties he owns here north of San Diego. In one case, more than $800,000 in earmarks he arranged will help widen a busy thoroughfare in front of a medical plaza he bought for $10.3 million.

His constituents cheer the prospect of easing traffic. At the same time, the value of the medical complex and other properties has soared, at least in part because of the government-sponsored road work.

But beyond specific actions that appear to have clearly benefited his businesses, Mr. Issa’s interests are so varied that some of the biggest issues making their way through Congress affect him in some way.

After the forced sale of Merrill Lynch in 2008, for instance, he publicly attacked the Treasury Department’s handling of the deal without mentioning that Merrill had handled hundreds of millions of dollars in investments for him and lent him many millions more.

And in an era when the auto industry’s future has been a big theme of public policy, Mr. Issa has been outspoken on regulatory issues affecting car companies, while maintaining deep ties to the industry through the auto electronics company he founded, DEI Holdings.

He has a seat on its board, and his nonprofit family foundation, which seeks to encourage values like “hard work and selfless philanthropy,” has earned millions from stock in DEI, which bears his initials. Mr. Issa’s fortune, in fact, was built on his car alarm company, and to this day it is his deep voice on Viper alarms that warns potential burglars to “please step away from the car.”

In recent months, The New York Times has examined how some lawmakers have championed particular industries, pushing measures to protect and enrich supporters. In Mr. Issa’s case, it is sometimes difficult to separate the business of Congress from the business of Darrell Issa.

Mr. Issa, 57, did not respond to repeated written requests in the last three weeks to discuss his outside interests. In the past, he has said his business background has made him a better lawmaker. In at least one Congressional matter, however, he recused himself after being advised of a potential conflict.

But perhaps his clearest statement on the issue came last year amid Toyota’s recalls of millions of automobiles with dangerous acceleration problems. Then, Mr. Issa brushed aside suggestions that his electronics company’s role as a major supplier of alarms to Toyota made him go easy on the automaker as he led an investigation into the recalls.

“If anything,” the congressman said, “Toyota probably got a harder time by having an automobile supplier sitting up there on the dais saying ‘Hold it, I’m not letting you off the hook now.’ ”

A Powerful Gadfly

As the influential chairman of the House Oversight and Government Reform Committee, Mr. Issa has proven both a reliable friend to business and a constant annoyance to an Obama administration that he sees as anti-business. Even before formally taking over the committee in December, he made headlines by asking 150 businesses and trade groups to identify regulations that they considered overly burdensome, and he has issued numerous subpoenas on his own authority in investigating programs he believes are harmful.

Article source: http://feeds.nytimes.com/click.phdo?i=afef78dceb080879d98ed4f0c571e854