Buffett on GOP tax cut: A "huge tailwind" for businesses
OMAHA, Neb.— Billionaire Warren Buffett says the tax overhaul Congress passed last year will provide a "huge tailwind" for American business.
Buffett's Berkshire Hathaway reported a $29 billion paper gain on far-reaching changes to the U.S. tax code, and the conglomerate will benefit from a lower tax rate going forward.
Buffett appeared on CNBC Monday after releasing his annual letter to Berkshire Hathaway shareholders on Saturday.
But Buffett says he's had a hard time finding acquisitions at reasonable prices so he's sitting on $116 billion cash and short-term bonds.
Buffett says he expects he'll eventually find a good use for a big chunk of that cash, but he may have to wait for a downturn in the economy.
The tax overhaul permanently reduces the corporate tax rate to 21 percent from 35 percent, while also moving to a system that would exclude many foreign profits from taxation. The savings would generate billions of dollars in profits for companies, with economists generally estimating that roughly 75 percent would go to investors and 25 percent to workers.
