Berkshire Hathaway, the holding company of U.S. billionaire investor Warren Buffett, received a stunning $29 billion last year from the U.S. government, thanks to a new tax law that massively lowered corporate tax rates.
In his much-anticipated annual letter to shareholders, Mr. Buffett explained that the company’s net gain of $65.3 billion in 2017 was only partly due to his employees’ efforts. “Only $36 billion came from Berkshire’s operations,” he wrote. “The remaining $29 billion was delivered to us in December when Congress rewrote the U.S. Tax Code.”
21% rate
Still, Mr. Buffett assured stockholders, “The $65 billion gain is nonetheless real — rest assured of that.”
The new law, greatly touted by President Donald Trump, lowered the tax rate paid by U.S. corporations from 35% to 21%, allowing many to undertake major new outlays and others to book significant fiscal gains.
Forbes magazine estimates Mr. Buffett’s personal worth at some $87 billion.
