Warren Buffett, chairman of Berkshire Hathaway, predicts that the U.S. government will likely raise taxes to address the country's growing fiscal deficit. Speaking Saturday at the company's annual shareholder meeting in Omaha, Buffett expressed his expectation that the government will choose to raise taxes rather than cut spending.
According to Buffett, the decision to raise taxes may stem from the government's reluctance to reduce spending, despite the potential consequences of large fiscal deficits. He suggested that the government may prefer to increase the tax burden on citizens rather than cut spending.
The Congressional Budget Office’s latest long-term budget projections show the federal deficit rising to $8.51 trillion of gross domestic product (GDP) in fiscal year 2054, up from the current $5.51 trillion in fiscal year 2024. The projection assumes that the tax cuts enacted in 2017, which are scheduled to be extended next year, are actually extended. Buffett’s comments come amid fiscal challenges, highlighting potential policy responses that could impact taxpayers in the years ahead.
Berkshire Hathaway's annual meeting, which takes place on Friday, May 3, 2024, is a closely watched event where Buffett often shares his insights on the economy, investing and corporate governance. The meeting attracts a large number of investors and media each year, eager to hear from the veteran investor.
Source: Investing
