After Warren Buffet declined to intervene in a labor dispute, Sen.Bernie sanders criticized him and highlighted his low rate of tax.
The labor dispute at Special Metals, a West Virginia firm owned by Buffett's holding company, was dragged on for too long.
Special Metals workers have been on strike. They don't like the plans to limit pay rises to 1% or 2% for several years, to increase healthcare premiums, and to limit vacation time.
According to the local news station WHCS, negotiations over a return to work were put on hold in December.
Insider's Theron Mohammed reported on Friday that a letter was written to Warren Buffet by the man who is the CEO of the company.
Special Metals is owned by the same company as Precision Castparts. But, in a reply to the senator, the investor said that he wouldn't be involved.
He cited a longstanding policy of not interfering in how its subsidiaries are run, in this case Mark Donegan.
He would pass on the message but wouldn't make a recommendation on how Donegan should proceed. He is responsible for his business.
On Friday, he said that he was not living up to his conviction that the US needs to reduce wealth inequality.
December 31, 2021.
Warren Buffet is a billionaire with a tax rate of just 0.10%.
He spoke about the crisis of growing inequality. Why doesn't he want the steelworkers of Special Metals to be treated with respect and dignity?
The reason that he wouldn't intervene was because of the ownership style of the company.
ProPublica reported on the 0.1% tax rate in June, which was part of an investigation into how the super-wealthy avoid tax.
The $27.3 million tax he paid on his personal income was only a small part of his total wealth.
Theron Mohammed reported at the time that the increases in net worth do not attract tax because they mostly come from the value of the stock.
The company doesn't pay dividends and doesn't attract tax. Most of his wealth is due to be given away, according to the arrangement defended by Buffet.
99% of his net worth has been pledged to charity.
According to Newsweek, he said that the money will be used to benefit society more if it is disbursed philanthropically than if it is used to reduce debt.
