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Warren Buffett Fact Checked Donald Trump, Released His Own Tax Data

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Warren Buffett's Donations
  • Warren Buffett Just Fact Checked Donald Trump

In a debate Sunday, Trump acknowledged using a nine-figure loss in 1995 to reduce tax obligations and sought to liken the move to strategies used by some of Democratic presidential nominee Hillary Clinton’s wealthy supporters, including Buffett. On Monday, the billionaire Berkshire Hathaway Inc. chairman released information from his personal taxes and challenged the Republican presidential candidate to do the same.

“He has not seen my income tax returns. But I am happy to give him the facts,” Buffett said in a statement. “I have paid federal income tax every year since 1944, when I was 13.”

Buffett has been clashing for months with Trump, who has refused to release his tax returns, citing an audit. At a campaign event for Clinton in Omaha, Nebraska, in August, the Berkshire chairman challenged the Republican candidate to meet him “any place, any time” to swap returns and answer questions from the public.

That never came to pass. On Monday, Buffett said he paid $1.85 million in federal income taxes in 2015 on adjusted gross income of $11.6 million. That would mean he paid an effective federal income tax rate of about 16 percent. In 2013, the most recent year for which data are available, the top 1 percent of earners paid 27 percent, according to an analysis of Internal Revenue Service data by the Tax Foundation.

Charitable Donations

Most of Buffett’s $65 billion fortune comes from his controlling interest in Berkshire. The company doesn’t pay a dividend and, for decades, Buffett has asked the board to keep his annual salary at $100,000. The 86-year-old is steadily giving away his Berkshire shares to philanthropy.

He said Monday that he made more than $2.8 billion of donations last year. Yet his tax return shows only $5.5 million in deductions, mostly for allowable charitable contributions and state income taxes. The law “properly” limits what can be deducted, Buffett wrote.

He again dismissed the contention that Trump can’t release his own return because of an audit by the Internal Revenue Service.

‘No Problem’

“I have been audited by the IRS multiple times and am currently being audited,” Buffett wrote. “I have no problem in releasing my tax information while under audit. Neither would Mr. Trump — at least he would have no legal problem.”

Jessica Ditto, a spokeswoman for the Trump campaign, declined to comment on Buffett’s remarks.

Trump, who has departed from roughly 40 years of tradition for presidential nominees by declining to release his returns or any tax information, has said he’ll make them public once the audit is complete and that returns wouldn’t give voters very much information.

Tax Strategies

Releasing full tax returns and schedules would disclose Trump’s income sources, charitable contributions and possible glimpses of his tax-minimizing strategies. Income reported from assets could provide at least some partial clues about the nature of those holdings, though not about their value or inner workings. His returns would also reveal any foreign income or foreign bank accounts.

Even if he didn’t release full returns, Trump could give voters at least some information — that is, how much he made and how much he paid — by releasing the sort of figures Buffett did, particularly if Trump provided several years’ worth of data.

During Sunday’s debate, Trump acknowledged for the first time that he had used a business loss of $916 million to avoid federal income income taxes — though he didn’t say for how long, and he said such tax avoidance is common practice among wealthy businessmen.

Under rules in place at the time, Trump could have used the loss to avoid taxes on as much as $50 million in income a year — for three years prior to the loss and 15 years after. Using old losses to reduce taxes on income in future years is known as a carryforward.

Buffett’s 72 Returns

“I have copies of all 72 of my returns,” Buffett wrote Monday. “And none uses a carryforward.”

While Berkshire has been a sophisticated user of the tax code to limit its liabilities, Buffett has been outspoken for years about how the wealthiest people in the U.S. don’t pay enough income tax. To illustrate the point, he has said his secretary pays a higher rate than he does.

The billionaire was the inspiration of the so-called Buffett Rule, proposed by President Barack Obama and backed by Clinton, which would tax incomes exceeding $1 million at a minimum rate of 30 percent. The Democratic candidate reiterated her support for that plan Sunday.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Netanyahu Stands Firm as US Halts Bomb Shipment Over Rafah Invasion Warning

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Netanyahu

Amidst escalating tensions between Israel and the United States, Israeli Prime Minister Benjamin Netanyahu has adopted a defiant stance following the US decision to halt a shipment of bombs and warned against Israel’s potential invasion of the southern Gaza city of Rafah.

In a bold statement, Netanyahu declared, “If we have to stand alone, we will stand alone,” emphasizing Israel’s resolve to pursue its objectives despite opposition.

The Prime Minister’s comments, delivered via social media and a subsequent interview with American talk show host Dr. Phil, underscore Israel’s determination to address security threats posed by the Gaza Strip, particularly by Hamas militants operating in Rafah.

Netanyahu reiterated the necessity of military action in Rafah to eliminate the remaining Hamas battalions, condemned Hamas’s history of violence and reiterated Israel’s commitment to achieving victory and ensuring the safety of its citizens.

The US administration, led by President Joe Biden, expressed concerns over the potential humanitarian impact of an Israeli invasion of Rafah, prompting the decision to withhold additional offensive weapons shipments to Israel.

Biden’s statement echoed broader international apprehensions about the escalation of violence and civilian casualties in the conflict-stricken region.

However, Netanyahu remained resolute in Israel’s approach, asserting the country’s right to defend itself against security threats. He emphasized Israel’s efforts to minimize civilian casualties and facilitate the evacuation of civilians from Rafah before any military action.

Despite the US’s decision to pause the bomb shipment, Netanyahu affirmed Israel’s commitment to its longstanding alliance with the US. He acknowledged past disagreements between the two nations but expressed optimism about resolving current tensions through dialogue and cooperation.

In response, White House officials reiterated the US’s support for Israel’s security while urging restraint and emphasizing the need to avoid actions that could exacerbate the humanitarian crisis in Gaza.

The administration clarified that the decision to halt the bomb shipment was aimed at preventing potential civilian casualties in Rafah.

The confrontation between Israel and the US underscores the complexity of navigating regional conflicts and balancing strategic interests. As tensions persist, both nations face the challenge of reconciling their respective security imperatives with broader humanitarian concerns, seeking to avert further escalation while addressing the root causes of the conflict in the Middle East.

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EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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Yahaya Bello

The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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NIMC enrolment

Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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