Feb 25, 2019

Warren Buffett says the wealthy are "definitely undertaxed"

Warren Buffett. Photo: Lacy O'Toole/CNBC/NBCU Photo Bank via Getty Images

Warren Buffett told CNBC on Monday that the wealthy are "definitely undertaxed" compared to the rest of the U.S. population, advocating an income tax credit as "the best way" to address the issue.

Details: Buffett also admitted that Berkshire Hathaway overpaid for its stake in Kraft Heinz, which saw its stock implode last week after terrible earnings results. He told CNBC, "It's still a wonderful business in that it uses about $7 billion of tangible assets and earns $6 billion pretax on that. But we, and certain predecessors, we paid $100 billion in tangible assets. So for us, it has to earn $107 billion, not just the $7 billion that the business employs."

Go deeper

Coronavirus cases rise, as more Americans on cruise confirmed ill

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's NHC; Note: China refers to mainland China and the Diamond Princess is the cruise ship offshore Yokohama, Japan. Map: Danielle Alberti/Axios

A U.S. public health official confirms more than 40 Americans on the Diamond Princess cruise ship off Japan have coronavirus, while the remaining U.S. citizens without symptoms are being evacuated.

The big picture: COVID-19 has now killed at least 1,770 people and infected almost 70,000 others. Most cases and all but five of the deaths have occurred in mainland China. Taiwan confirmed its first death on Sunday, per multiple reports, in a 61-year-old man with underlying health conditions. Health officials were investigating how he became ill.

Go deeperArrowUpdated 2 hours ago - Health

Scoop: Inside the Trump campaign's big hedge on Facebook

Illustration: Eniola Odetunde/Axios

The Trump campaign has invested most of its advertising budget to date on Facebook, testing thousands of versions of ads per day to maximize its spending.

But behind the scenes, a source familiar with the campaign tells Axios, the thinking has shifted: "As everyone can see, we still have strong spending on Facebook, but the percentage of our total media budget [on Facebook] is shrinking."

Trump's revenge tour has the House in its sights

Illustration: Aïda Amer/Axios. Photo: Saul Loeb/Getty Contributor

In the lead-up to the 2018 midterm elections — buoyed by Republican control of both chambers — President Trump viewed campaigning for the House as a lower-tier priority and instead poured his energy into rallying for the Senate.

But after the GOP reckoning in 2018, and experiencing firsthand how damaging a Democratic-led House has been to him, Trump is now personally invested in helping Republicans regain the majority in November, several people familiar with his thinking tell Axios.