With the pushback against ESG (an investment “discipline” under which actual or prospective portfolio companies are measured against various environmental, social, and governance benchmarks) gathering momentum, its proponents have finally had to mount a credible defense of a once seemingly irresistible concept that, up to now, has had no need of one.
That’s not proving easy…
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Egalitarianism is a dimwit's doctrine at the best of times, but when we hear it from the very rich, it becomes simply grotesque. With Marie Antoinette it took the form of sheep. She liked to dress up in supposedly rustic clothes and, surrounded by groveling courtiers and gamboling lambs, would pretend that she was a shepherdess. Outside the palace grounds real farm workers lived in real poverty, but their fate was, naturally, of no concern to the queen of France. Now, Warren Buffett is no Marie Antoinette. There are no lambs in his life. Instead, the Sage of Omaha prefers to demonstrate his egalitarianism by supporting grave robbing.
Surrounded by groveling accountants and gamboling leftists, the "aw shucks" billionaire has become a leader of a new campaign to preserve the estate tax. Meanwhile, beyond the Buffett zone of IRS-exempt foundations and well-paid tax lawyers, the levy on dying continues to march onward.
The technical arguments against the estate tax are examined elsewhere in NRO, but it is may be worth taking a closer look at those wealthy folks who are spearheading the latest effort to defend it. The centerpiece of their campaign is a petition drive being organized by Bill Gates's father and the Boston-based lobby group, United for a Fair Economy.
UFE is, according to the New York Times, a "non-partisan" organization. But a quick glance at the UFE website reveals a fairly standard left-wing agenda enlivened by ancillary touches of the absurd that are only to be expected from a body funded by the likes of Resist, the Agape Foundation, and the "Unitarian Universalist Veatch Program at Shelter Rock."
To get an idea of what UFE really stands for, check out its list of recent "accomplishments." These have included the production of "Applying Tzedek to the Economy" (a modification, in case you were wondering, of UFE's "core workshop"), collaborating with the education department of the AFL-CIO, and, unsurprisingly, campaigning against free trade.
Seattle-based Gates Sr. must have been thrilled to see his UFE chums when they came to his hometown for the WTO summit. They "ran teach-ins, coordinated protests and brought smiles to people's faces with [their] street theater antics." Did Gates the Elder invite his son along to share in the fun? One UFE correspondent notes that the Seattle protests — regarded by the rest of the world as a form of vicious mob rule — were, in fact, a "smashing" success — "[M]uch more hopelessness and isolation was broken in Seattle than glass." Oh yes, did I mention that gifts to UFE are, ahem, tax-deductible?
In 2000, UFE campaigned to support Bill Clinton's veto of estate-tax repeal, a precursor to this year's effort. Much of last year's campaign was organized through one of UFE's affiliates, the pompously named "Responsible Wealth." RW targets as potential members those people with an annual household income of more than $145,000 or assets in excess of $650,000. There is no truth in the rumor that they also recruit turkeys for Thanksgiving.
Not the most modest of organizations, RW likes to proclaim that its 450 members are "leaders in business, community, government, philanthropy, academia and finance." Who are we to argue? Members available for media interviews on the estate tax include a stockholder in a paper mill, an assistant professor at the Rochester Institute of Technology, and the proprietor of the White Dog Café in Philadelphia.
RW's rhetoric shares the basic UFE approach, but adds the cringe of the self-hating, yet self-important, wealthy: "As beneficiaries of economic policies that are tilted in our favor, we feel a responsibility to speak out and change the system to benefit the common good." That explains why RW is also opposed to the 1997 capital-gains tax cut, which might come as a surprise to Mr. Buffett's shareholders/disciples in Berkshire Hathaway.
As for RW's latest campaign, the text of the new pro-estate tax petition ran on the op-ed page of last Sunday's New York Times. As is to be expected of a document carrying the RW logo, it is a poor, sad piece of collectivist boilerplate. The only thing more annoying than the petition's text was its list of signatories. There were the usual suspects, prominent members of the bossy families that have been hectoring America for a century or so, foundation-protected Rockefellers, and a Roosevelt or two. Bill Gates, Sr. was there of course, right at the top, still busily promoting himself on the back of his son's success. Other grandees on the list included Paul Newman and Clinton donor Agnes Gund, the Sanka heiress, who is also the president of MoMA. New York was also ably represented by Democrats Henry and Edith Everett, a pair of "ardent anti-smoking activists" whose most entertaining philanthropic moment was the withdrawal of a gift to the Central Park Children's Zoo, reportedly on the grounds that the proposed commemorative plaque was too small. (Some legacies, it seems, do matter.) Finally, of course, there is the name of the genius billionaire investor with all the wacky political ideas. Yes, George Soros has signed.
Warren Buffett has not, however. As far as he is concerned, the petition does not go far enough. Mr. Buffett, the son of a four-term congressman, is worried, you see, terribly, terribly worried, about the dangers of a society where success depends on family rather than on merit, and he wants us all to know it. It is quite unfair to suggest that there is any contradiction between this view and his fundraising for Mrs. Clinton's Senate campaign. Some unkind people have suggested that the only reason that the former First Lady was in a position to run was because her husband was in the White House — in other words, because of her family. Mr. Buffett must have known better. Indeed, he was so enthusiastic a supporter that he told one gathering that he would have liked to have hired her himself. She had everything it took, he said, including, he stressed, "integrity".
And that tells you all you need to know about the political judgment of Warren Buffett and the campaign to preserve the estate tax.