There is a probability of increasing corporate taxes to control deficits in the US.

There is a probability of increasing corporate taxes to control deficits in the US.

U.S. taxes likely to rise as lawmakers seek to reduce the federal deficit, said Warren Buffett, as Washington prepares for major fiscal negotiations next year.

The chairman and CEO of Berkshire Hathaway, speaking Saturday at the company's annual meeting in Omahawhich is closely followed, He avoided commenting directly on the partisan fight taking shape over corporate taxes.. But he said his company will pay whatever the rate is, whether it's the current 21% or something more.

“With current tax policies, I think something has to give,” Buffett said. “Taxes are very likely to increase, and if the government wants to keep a greater proportion of your income, mine or Berkshire's, you can do it. And they may decide that one day they do not want the fiscal deficit to be so large.”

Tax changes enacted under then-President Donald Trump in 2017 reduced the corporate rate from 35% to 21%, along with a host of other changes.

They include several tax cuts affecting individual taxpayers that are set to expire, setting up talks next year about what changes to make, talks that could lead to a change in the corporate rate. President Joe Biden has called for increasing the corporate rate to 28%.

Buffett is a long-time advocate of higher taxes on the rich, having often said that it is wrong for his secretary to pay a higher tax rate than he does.

He echoed that in his comments Saturday. Berkshire paid more than $5 billion in federal taxes last yearsaid.

“And if 800 other companies had done the same thing, no other person in America would have had to pay a dime,” Buffett said. “It doesn't bother me in the least to write that check, and I really hope that with everything America has done for all of you, it shouldn't bother you that we do it“.

He added that a higher tax rate could calm any shareholders concerned about the stock sales Berkshire is making now. “And if I'm doing it at 21% this year and we'll do it at a much higher percentage later, “I don't think they care about the fact that we sold quite a bit of Apple this year.”he said, referring to Berkshire's larger shareholding.

“We always expect at Berkshire to pay significant federal income taxes,” Buffett said. “We think it's appropriate.”