Berkshire Hathaway Inc. Chairman Warren Buffett took on the Republican Obamacare repeal bill that was passed by the House this week and called it “a huge tax cut” for the rich.
The billionaire investor was speaking at Berkshire Hathaway’s annual shareholders’ meeting in Omaha, Nebraska, which is attended every year by tens of thousands of investors and is referred to as the “Woodstock of capitalism.”
“Medical costs are the tapeworm of American economic competitiveness,” Buffett said, as reported by the New York Times. “That is a problem this society is having trouble with and is going to have more trouble with.”
The world’s second richest man – according to Forbes’ 2017 ranking – explained how healthcare costs were a bigger problem for American businesses than high taxes. While most developed countries publicly finance their healthcare spending, U.S.-based employers provide health insurance coverage for almost half of the population, often at high rates. Buffett added that the costs “will go up a lot more.”
Buffett said if the bill pushed by President Donald Trump was in effect last year, his federal income taxes would have gone down by 17 percent.
“So it is a huge tax cut for guys like me,” Buffett was reported saying by Reuters. “And when there’s a tax cut, either the deficit goes up or they get the taxes from somebody else.”
Trump’s proposed tax plan is expected to cut corporate tax to 15 percent – “to the benefit of shareholders” as Buffett put it – and the new Republican healthcare bill would also repeal most of the taxes that paid for the Obamacare, or as it is formally known, the Affordable Care Act.
The GOP bill, however, has an uphill task ahead of it as it faces the Senate. Critics of the bill have said it will take away the healthcare benefits of millions of people and allow the rich to get tax breaks, just as mentioned by…