The Glade 4.0

Warren Buffett tells CNBC's Becky Quick that Berkshire Hathaway has talked to five big financial firms about buying their tax credits.

Buffett says he can't name any names due to confidentiality agreements, but notes that Berkshire has been buying tax credits since 1990 and will continue to do so in the future.

The Journal says Buffett's involvement "adds a twist to what was already a politically sensitive deal." The paper says the Treasury Department is "considering blocking any potential sale on the grounds that it wouldn't benefit taxpayers" since any money earned by Fannie would be offset when the buyers used the tax credits.

What used to be a "simple deal" in years past is now "fraught with political calculations, such as the perception of aiding a Wall Street giant at a time of popular anger against bankers."

Buffett's reputation could help shield Goldman from criticism of a deal. Buffett has a long-standing relationship with Goldman, including his very profitable $5 billion investment in the firm last fall at the height of the credit crisis.

The sale of tax credits by firms unable to use them is the result of a government program started in 1986 to encourage the construction of low-income housing.

The Journal says the recession has reduced demand for the tax credits because potential buyers no longer had profits that needed to be protected from taxes.

While demand is beginning to pick up as the economy starts to rebound, developers say credits are being sold for between 65 and 79 cents on the dollar, making them very attractive to buyers who do have profits that could be shielded.

Facism is not a school of thought, it is a racial slur.

Facism is not a school of thought, it is a racial slur.

ROFL, hypocritical ****, he is. The same guy who says taxes should be raised on people in his income bracket is going out and buying tax credits. If he really thought this, wouldn't he be an opponent of tax shields and not participate in them?

In comic strips the person on the left always speaks first. - George Carlin

Take advantage of opportunity != campaigning around for Unconstitutional Governmental intervention in the market.

Were raising personal income taxes and thus artifically creating demand for tax shields (which don't exist naturally in a market) not the result of government intervention, I'd agree. But using that logic, we could say those who don't send lobbyists or try to otherwise coerce politicians into writing legislation that gives them a competitive advantage aren't taking advantage of every opportunity available.

In comic strips the person on the left always speaks first. - George Carlin

I hate the guy but at least he is saying tax me more and I believe that if we did he would pay it, but until someone does... well you can't donate money to the government since they've never established a bureacracy of charitable contributions.

I hate the guy but at least he is saying tax me more and I believe that if we did he would pay it, but until someone does... well you can't donate money to the government since they've never established a bureacracy of charitable contributions.

Facism is not a school of thought, it is a racial slur.

I find this sadly problematic. The Wealthy, those in Buffet's tax brackets, already carry this country financially. The government has proven incapable of being fiscally responsible: the last thing we need to do is give them more money.