Buffett’s NetJets Sues U.S. Over $642.7 Million Ticket-Tax Assessment
Bloomberg: NetJets, the private-aircraft company owned by Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), sued the U.S. over excise taxes and penalties totaling $642.7 million assessed against the company.
The IRS improperly assessed the so- called ticket tax, an excise tax on payments made in exchange for air transportation, NetJets said in its complaint in federal court in Columbus, Ohio, dated Nov. 14.
NetJets seeks a refund and abatement of the ticket tax. The company claims in its suit that Congress intended the tax to apply to passengers who use commercial or charter aircraft owned by others. “The ticket tax was not intended to apply to private aircraft owners and the fees they pay to maintain and operate their aircraft,” NetJets said in the complaint. NetJets also claimed that the IRS didn’t provide any guidance about the types of fees for which the company would have to collect the ticket tax from passengers.
This past August Buffett wrote an opinion piece for The New York Slimes entitled, “Stop Coddling the Super-Rich”. In it he said the following:
While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. I know well many of the mega-rich and, by and large, they are very decent people. Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering. My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice.
This man calls for higher taxes yet his company is fighting this tax. How ironic that the third richest man in the world (at the top of the 1% with a net worth of $50 billion), who believes in shared sacrifice, is now fighting this tax.
Hypocrite: A person who acts in contradiction to his stated beliefs or feelings. Might as well just add his picture next to the definition.