Why Warren Buffett supports the Estate Tax

I'd often wondered why Warren Buffett, the world's second richest man, was such a big supporter of the estate tax (the government's proof of the concept that you can't take it with you). This might help to explain it:

The estate tax weighs heavily on those who have asset-rich businesses, typically family businesses that have taken years to break even and accumulate value. When the owner dies and the children take up the reins, the estate tax comes into play, sometimes costing as much as the business itself. The heirs are then forced to sell the business before losing any more money. This is how Buffett came to own Dairy Queen and the Buffalo News, among other businesses, as they were being sold at lower prices than their actual value. In the latter case, Buffett bought the paper for less than what it would wind up making him each year.

Beyond providing Buffett with a bumper crop of businesses to purchase, the estate tax also provides him with customers. Any financial advisor will tell you that the major component of a sound financial plan is composed of asset allocation, not blue chip trades on the stock market. And that is why they recommend you purchase some life insurance to shelter your money from large taxes such as the estate tax. And why not purchase that life insurance from Buffett's very own insurance company, GEICO?

Our great philanthropist doesn't benefit if the estate tax is repealed — he loses on cheap deals, affluent customers, and spread his own "common man" mythology. Unfortunately, too few realize that Buffett is so self-interested. As he talks about how much he dislikes inordinate wealth, he has done his damnedest to make sure no one else achieves it.