Warren Buffett Prefers Estate Tax, But His Wealth Strategy Means He’ll Likely Bypass It

In a nuanced discussion about wealth transfer and taxation, Warren Buffett, the legendary investor and chairman of Berkshire Hathaway, has expressed his support for an estate tax. However, like many billionaires, his intricate financial planning suggests he may not personally contribute to it, sparking debate among readers of the Warren Buffett Watch newsletter.

The recent decision by Buffett to accelerate his annual donations of Berkshire Hathaway shares, totaling $140 billion, to four family foundations has drawn significant attention. While some commend his philanthropic endeavors, others question the efficacy of such donations in addressing societal needs and accuse Buffett of using philanthropy as a tax avoidance strategy.

Buffett's Stance on Taxes and Philanthropy

Buffett has historically maintained that he is not opposed to paying taxes, even taking pride in the substantial sums Berkshire Hathaway has contributed to the U.S. Treasury. He has famously stated he is "under-taxed in relation to what society has delivered to me," highlighting disparities where his secretary, due to payroll taxes, and himself, due to lower capital gains tax rates, face different tax burdens.

This perspective led President Barack Obama to propose the "Buffett Rule" in 2011, a minimum 30% tax on incomes exceeding $1 million, which was ultimately rejected by the Senate in 2012. Despite his advocacy for fair taxation, Buffett humorously noted in 1998, "I don't send along any voluntary payments to the I.R.S., I want you to understand."

The Estate Tax Debate

During a 2017 interview on CNBC's "Squawk Box," as Congress debated eliminating the 40% estate tax, Buffett and Becky Quick delved into his views. Buffett articulated a strong opposition to the elimination of the estate tax, framing it not as a "death tax" but as a mechanism for resource allocation.

BECKY QUICK: You said earlier that this is not a tax reform bill. It's a tax cut.

WARREN BUFFETT: A tax cut.

BECKY QUICK: What do you think about it?

WARREN BUFFETT: Well, I — I don't think I need a tax cut. But — for example, the current proposal eliminates the estate tax. And it's not a death tax. There are going to be 2.6 million people die this year in the United States. And there'll be 5,000 tax returns that people — estates that pay tax. So if you start going to a funeral every month, it's going to be 40 years on average before you go to one where there's any estate tax due. It's a very pejorative term.

The truth is if they pass the bill that — they're talking about — I could leave $75 billion to a bunch of children, and grandchildren, and great-grandchildren— and if left it to 35 of them — they'd each have a couple billion dollars. They could put it out at 5 percent, 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 — for 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 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 (LAUGH) blow it all, that means that they — you know, that they've done some done 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 society when there's a ton of un — inequality — to start with. And — so I — I would — I think that's a terrible mistake, for example.

BECKY QUICK: However — let's play devil's advocate here.

WARREN BUFFETT: Sure.

BECKY QUICK: 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?

WARREN BUFFETT: I — I do. But I — I — I don't think that setting it up so children, grandchildren — let's say I died when they were 20. I don't think they'd be the same individuals that they are. I didn't — encourage that foundation program until they were in their 40's and — and I'd seen what they'd done with their lives — and they — and they'd had a chance to live for a long time, going to public schools, living just like other people in Omaha live.

But I — I just think that — I don't think we should have our Olympic team 20 years from now be the eldest sons of the Olympic team currently. And —

BECKY QUICK: So it's the dynastic —

WARREN BUFFETT: The dynastic —

BECKY QUICK:  —impact of money.

WARREN BUFFETT: I don't think — I don't think — a dynastic system with huge sums of wealth — and bear in mind the wealthy are so much wealthier now than they were 25 years ago. We're talking about the 400 now having 2.4 trillion against 90 billion — 25 times as much money.

So you have — sprinkled around — you have these children and grandchildren that — that just with those 400 could have two — 2.4 trillion passed down to them. That's a lot of resources in this country with a $20 billion G — not even quite a 20 bill — trillion-dollar G — GDP.

I think — I think it goes totally against what's built this country, what this country stands for. And if those 5,000 people can't stand to spend the 20 or 25 billion, they've got lots left over. Believe me. And incidentally it would be bad for philanthropy. I mean — people would — a certain number of people would elect to set their kids up with — you know, billions and billions of dollars rather than — than have it go to philanthropy. But I don't think that's the primary reason. But I do think that'd be a byproduct.

The estate tax exemption has since increased to approximately $15 million per person.

Berkshire Hathaway's Strategic Moves

In other news, Berkshire Hathaway has successfully closed its $6.8 billion acquisition of homebuilder Taylor Morrison. This marks a significant early achievement for CEO Greg Abel, who, in a departure from Berkshire's usual decentralized model, plans to integrate Taylor Morrison's brands into the existing Clayton Properties Group.

This strategic acquisition is seen by analysts as a signal that the housing market has potentially bottomed out.

Berkshire Stock Watch

As of July 24, 2026, Berkshire Hathaway's Class A stock (BRK.A) was valued at $744,999.99, and Class B stock (BRK.B) at $494.93. The company's market capitalization stands at approximately $1.07 trillion. Berkshire reported $397.4 billion in cash as of March 31, 2026, an increase from the previous quarter, and repurchased $234 million of its shares in Q1 2026.

Top Equity Holdings

Berkshire's latest 13F filing on May 15, 2026, reveals its top equity holdings as of March 31, 2026. These include significant stakes in major corporations, with adjustments for direct purchases from companies like Alphabet. The full list and current market values are available through CNBC.com's Berkshire Hathaway Portfolio Tracker.

-- Alex Crippen, Editor, Warren Buffett Watch