2014: Can Buffett influence President Obama's policies?
AUDIENCE MEMBER: Yes, hello. My name is Doug Merrill (PH). I’m from Denver, Colorado, the home of Peyton Manning.
WARREN BUFFETT: Omaha, Omaha. (Laughter)
AUDIENCE MEMBER: Awesome.
The president’s approval rating is at 40 percent. Steve Wynn said, “Obama is the biggest wet blanket to the economy.” Other countries are lowering taxes and reducing debt.
You have Obama’s ear. The train’s going in the wrong direction. Can you conduct Obama to change the train’s direction? (Applause)
WARREN BUFFETT: Doug, I think I’ll let you communicate with him directly. (Laughter)
I don’t agree with a number of things you’ve said there. American business is doing extraordinarily well. (Applause)
The — many of the American people are not. And, you know, and I think Obamacare is more about doing something for them than many other people would.
But we’re going to have a difference of opinion on politics. And I’m not going to convince you, and you’re not going to convince me.
But I will say that anybody that thinks American business is doing — is not doing well — should just look at corporate profits.
Anybody that thinks our corporate taxes are too high should look at a chart of corporate taxes as a percentage of GDP since World War II, and it’s come down from 4 percent of GDP to 2 percent of GDP, while many other forms of taxes have, obviously, increased.
And American business earnings on net tangible assets, which is the way to measure profitability overall, you know, it’s basically the envy of the world. I mean, we have extraordinary returns on tangible assets — net tangible assets — in this country.
And our tax rates now for corporations are far lower than when Charlie and I were operating. And American business actually was doing pretty good then.
But for much of our life, taxes were at — corporate taxes — were at either 52 percent or 48 percent.
But I don’t want to try and convince you because I don’t want you to try and convince me. So we’ll call a truce on that and I’ll let Charlie comment. (Laughter)
CHARLIE MUNGER: I’m going to avoid this one. (Laughter)
WARREN BUFFETT: And people complain about me abstaining. (Laughter)