Caleb Naysmith
3 min read
When Warren Buffett assumed control of Berkshire Hathaway (BRK.B) (BRK.A) in 1965, the company was a struggling textile manufacturer that had not paid federal income tax for years — a fact Buffett described as “an embarrassment” for such a venerable firm. Fast forward six decades, and Berkshire Hathaway has become not only a global conglomerate but also America’s single largest corporate taxpayer. In his 2024 annual letter, Buffett revealed that the company’s cumulative federal income tax payments have now surpassed $101 billion.
This staggering sum is more than a financial milestone; it represents a direct infusion into the nation’s ability to fund essential services. To put $101 billion in perspective:
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Military Budget: The U.S. Department of Defense’s annual budget for 2024 was approximately $850 billion. Berkshire’s lifetime tax payments could fund more than 11% of the entire U.S. military for a year, or fund the Marines for two full years.
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Healthcare and Education: $101 billion could finance the federal government’s entire Medicaid program for several months, or fund the Department of Education’s discretionary budget for more than an entire year.
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State Revenue: For comparison, many U.S. states have annual budgets well below $101 billion. Berkshire’s tax contributions over the years would eclipse the yearly general fund budgets of states like Pennsylvania, Illinois, or Ohio. Texas, one of the largest economies in the world, has $250 billion in yearly tax revenue.
In 2024 alone, Berkshire paid $26.8 billion in federal income taxes, accounting for roughly 5% of all corporate income tax collected in the U.S. — a figure surpassing even the largest technology firms with trillion-dollar market capitalizations. This historic payment demonstrates the outsized role Berkshire plays not just in the corporate world, but in supporting the nation’s fiscal health. Buffett called the sum a “record-shattering payment.”
Buffett said of his company’s tax bill last year that “if Berkshire had sent the Treasury a $1 million check every 20 minutes throughout all of 2024 – visualize 366 days and nights because 2024 was a leap year – we still would have owed the federal government a significant sum at yearend.” This showcases the staggering sum of money Berkshire paid out to the U.S. government.
