Warren Buffett on Why the Estate Tax Matters

Added: 2026-05-16

[00:00:00]So, if you start going to a funeral uh every month, it's going to be 40 years on average before you go to one where there's any estate tax due.

[00:00:09]It's a very pejorative term. The truth is if they pass the bill that uh they're talking about, uh I could leave 75 billion dollars to a bunch of children and grandchildren and great-grandchildren. And if I left it to 35 of them, uh they they each have a couple billion dollars. They could put it out at 5% have 100 million. I mean, is that a great way to allocate resources in the United States? Because that's what you're doing with it through the tax code is you're affecting the allocation of resources. So, if they were lucky enough to come out of the right womb, have the right name, Buffett, they could sit there and build tombs for themselves like the Egyptians pharaohs never dreamt of. They could they could they could do anything. And And capitalism is all about intelligent allocation of resources. Now, some people say, "Well, you don't have to worry about that because they'll blow it all." But if they blow it all, that means that they you know, that they've done some dumb things with some important resources. And that's that's not good for capitalism. I don't think it's good for the children. I sure as I sure don't think it's good for a society where there's a ton of inequality uh to start with. And uh so, I I would I think that's a terrible mistake, for example.

[00:01:18]>> However, play devil's advocate. You have three children who have foundations that each of them are running. Do you think that they're a better allocator of that money than the federal government?

[00:01:28]I I do. Uh but I I I don't think that setting it up so children, grandchildren I mean, let's say I died when they were 20. Uh I don't think they'd be the same individuals that they are. I didn't uh encourage that foundation program till they were in their 40s. And uh and I'd seen what they'd done with their lives.

[00:01:49]And they and they had had a chance to live for a long time going to public schools, living just like other people in Omaha live. Uh I think it I I it goes totally against what's built this country, what this country stands for, believe me.

[00:02:05]Incidentally, it would be bad for philanthropy.