Warren Buffett’s annual letter to shareholders disclosed that Berkshire Hathaway reaped a massive gain as a result of the Republican tax reform passed in December. As Buffett wrote, “a large portion of our gain did not come from anything we accomplished at Berkshire.” Rather, $29 billion was handed out to Berkshire Hathaway, a large, highly successful investment company that hardly needs the help.
In the weeks since the tax bill was signed into law, Republicans have tried to focus attention on bonuses that some workers have received, even though these bonuses total nowhere near the amount companies are spending to buy back their shares and boost returns for shareholders.
But, imagine if this $29 billion tax gain, a gain at just one company, had gone to workers. It could have provided 29 million workers with a $1,000 bonus. Every employee in Arizona, Indiana, Kentucky, Michigan, Missouri, Nevada, Ohio, Pennsylvania and West Virginia could have received a $1,000 bonus. Just from one company’s tax windfall.