Buffett Advises Trump on Government Spending Following $26.8 Billion Tax Contribution
Warren Buffett urged the administration to exercise prudent debt management and to allocate Berkshire’s unprecedented $26.8 billion tax payment judiciously.
In his annual letter to shareholders, Warren Buffett celebrated the achievements of Berkshire Hathaway over the previous year, while also offering counsel to the Trump administration on the responsible management of the U.S. economy.
He emphasized Berkshire Hathaway’s tax payments as a reflection of its expansion, contrasting the zero-income tax contributions made prior to his acquisition in 1965 with the astounding $26.8 billion it disbursed to the Internal Revenue Service (IRS) last year. This amount, he pointed out, surpassed contributions from any U.S. company— including multibillion-dollar tech corporations—in corporate income tax history.
“Specifically, Berkshire made four payments to the IRS last year, amounting to $26.8 billion,” Buffett stated. “This represents about 5 percent of what all of corporate America paid. (Furthermore, we also made significant income tax payments to foreign governments and 44 states.)”
Buffett attributed this remarkable tax contribution to Berkshire’s enduring practice of reinvesting profits instead of distributing dividends. Since 1965, shareholders have received only one cash dividend—10 cents per share in 1967—permitting the company to compound its earnings and taxable income over the span of six decades. As a result, he noted, Berkshire’s total tax payments to the U.S. Treasury have exceeded $101 billion.
Buffett’s plea to Uncle Sam to “spend wisely” surfaces at a time when the Trump administration is intensifying its efforts to cut spending in order to address the increasing public debt in the United States. As part of this initiative, President Donald Trump has instituted the Department of Government Efficiency (DOGE), assigning it the task of identifying waste, fraud, and abuse within federal expenditures.
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Elon Musk, who heads DOGE, has cautioned that without action to reduce federal debt, interest payments could spiral out of control, jeopardizing the future of Medicare and Social Security.
Experts have consistently warned that excessive and mismanaged debt—especially when driven by excessive money creation or unsustainable borrowing—can lead to inflation, diminished investor confidence, and currency depreciation.
“Annual net interest expenditures have more than tripled since FY 2017, when they amounted to $263 billion,” GAO noted in the report dated Feb. 5. “We project that interest spending will exceed $1 trillion in FY 2025. The escalating debt and interest obligations present grave economic, security, and social challenges for the U.S.”
Buffett’s communication to the Trump administration focused on fiscal responsibility, while also conveying a message of compassion for those less fortunate.
“Look after those who, through no fault of their own, draw the short straws in life. They deserve better,” Buffett expressed.
“And always remember that maintaining a stable currency is essential, which requires both wisdom and vigilance on your part.”
