Buffett's Widening Rift with Republicans

A fairly lengthy Bloomberg piece on Warren and his politics:


Warren Buffett, the self-made billionaire and son of a former Republican congressman, has widened the rift with his father’s party by pressing for tax increases on the wealthy and reinforcing ties with President Barack Obama.


Buffett endured scorn from Republicans this month after he called the Tea Party approach to budget talks “insane” and proposed raising $500 billion by taxing the richest Americans. Buffett, chief executive officer of Berkshire Hathaway Inc. (BRK/A), was cited as an exemplar by Obama at least three times since July.


“Whenever Buffett says something, you can almost put money on the fact that within the next 48 hours, Obama’s going to use the phrase, ‘My good friend Warren Buffett says blah, blah, blah,’” said David Rolfe, chief investment officer of Berkshire shareholder Wedgewood Partners Inc. “If you’re going to tread into those waters, you need to expect the brickbats.”


Buffett’s criticism contrasts with praise he offered in the last decade to former California Governor Arnold Schwarzenegger and the political appointees of former President George W. Bush. The Tea Party movement, which made gains in last year’s elections, was faulted by Buffett for silencing other Republican voices. Buffett plans to hold a Sept. 30 fundraiser in New York City for Obama’s re-election bid, Democratic officials said.

Support for Republicans

Buffett, 81, has championed causes like abortion rights and the estate tax through his career, even as he cultivated relationships with Republican leaders. Buffett, a Democrat, was an economic adviser for Schwarzenegger’s 2003 campaign and repeatedly praised Bush’s picks, including former Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke, for their handling of the 2008 credit crunch.


Buffett raised his voice as Democrats and Republicans sparred over a budget deficit of more than $1 trillion and worked on campaigns for the 2012 presidential election. Buffett, whose fortune is valued at more than $35 billion, has delved into public policy since July in a New York Times op-ed and interviews with CNBC, Bloomberg Television and Charlie Rose.


“The speak-softly approach wasn’t working, and he didn’t think enough people were paying attention,” said Whitney Tilson, co-founder of Berkshire shareholder T2 Partners LLC and a member of Patriotic Millionaires for Fiscal Strength, which advocates higher taxes on the rich. “He’s doing it because he believes in it, not because it’s in his self interest.”

‘A Sound Bite’

Buffett built Omaha, Nebraska-based Berkshire from a failing textile mill into a $180 billion seller of insurance, energy and freight hauling with more than 250,000 employees.


“I think Mr. Buffett needs a day job,” Representative Joe Walsh, an Illinois Republican elected with Tea Party support, said today in an interview on Bloomberg Television’s “Inside Track.” “These millionaires and billionaires are the folks that try to create jobs and grow the economy. The last thing we want to do is increase taxes on them right now.”


U.S. Representative Michele Bachmann, a candidate for the Republican presidential nomination, derided Buffett’s tax proposal as “a sound bite” and suggested he donate his fortune to the government. Another Republican candidate, Herman Cain, said Buffett was “playing the class warfare card.” A headline in the Wall Street Journal’s Deal Journal blog asked, “Is Warren Buffett a Socialist?”


Link to entire article:


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