Clinton-Buffett ‘Conversation’ Expected To Raise More Than $1M
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Senator Clinton’s presidential campaign was expected to raise more than $1 million from an event with hedge fund managers, private equity executives, and businessmen last night, aides said.
A private dinner with 50 of the guests at the Sheraton Hotel in Midtown was followed by what the event organizers billed as a conversation between Mrs. Clinton and billionaire Warren Buffett. Mr. Buffett, however, did most of the talking.
The Berkshire Hathaway founder spoke on tax code reform, his political philosophy, and the recent move by Democratic legislators to change the way hedge fund managers and private equity executives are taxed.
After saying he believed private equity firms often bring value to the companies they take over, Mr. Buffett said that he did not think that private equity executives should “receive a tax break.”
The attendees, who included the co-founder of Silver Lake, Glenn Hutchins, and managing principal of Quadrangle Group LLC, Steven Rattner, broke out into half-hearted applause. Mrs. Clinton, smiling, did not make a direct comment on the issue.
Members of the Senate Finance Committee proposed legislation earlier this month that would change the tax rate of publicly traded partnerships to 15%, from 35%. The proposal came amid increased scrutiny of private equity executive salaries, including that of the co-founder and chief executive of Blackstone, Stephen Schwarzman. Mr. Schwarzman received a salary of more than $400 million last year. When the company goes public, he is expected to receive $677 million and retain $7.5 billion in stock.
Mr. Buffett also said that the tax code was flawed and promoted inequalities. “I’m willing to bet anyone in this room $1 million that their tax rates are less than their secretaries’,” he said.
Ms. Clinton said Mr. Buffett’s answers were an example of how a person can be pro-business and economic growth while remaining sensitive to the “people who get left behind.”
Asked why he was a Democrat, Mr. Buffett said that when it comes to questions about creating equality of opportunity in the country, “the Democrats just do a better job.”
