Warren Buffett's Berkshire Hathaway pays 5% of all corporate income taxes in America
From Yahoo Finance: 2025-06-23 10:19:00
Warren Buffett’s 2024 shareholder letter revealed Berkshire Hathaway’s remarkable transformation. From paying no federal income tax in 1965 to delivering the largest corporate tax payment in U.S. history in 2024, the conglomerate contributed $26.8 billion, about 5% of all corporate income taxes collected last year.
Buffett’s leadership turned Berkshire from a failing textile company to a trillion-dollar conglomerate. Starting in 1965, Buffett shifted focus to insurance, utilities, and value-driven investments, generating massive taxable income through reinvestment. Berkshire has paid over $101 billion in federal taxes since 1965, with minimal dividends to shareholders.
Buffett’s long-term capital allocation strategy led Berkshire to surpass tech giants in 2024 tax payments. He credits shareholders’ endorsement of continuous reinvestment for compounding returns and expanding the tax base. Berkshire’s organic growth contrasts with companies prioritizing short-term payouts, reinforcing the importance of patient capital compounding.
Buffett put Berkshire’s $26.8 billion tax payment in perspective, highlighting its enormity. He illustrated how continuous payments throughout 2024 would still leave a significant sum owed to the government. Berkshire’s tax milestone showcases the transformative impact of disciplined reinvestment on both corporate resilience and national fiscal strength.
Read more: Warren Buffett’s Berkshire Hathaway Now Pays 5% of All Corporate Income Taxes in America