Donald Trump Is Making Warren Buffett Billions Of Dollars, New Report Shows

Warren Buffett is set to gain a few billion bucks because of President Trump's tax bill. Getty Images

Warren Buffett, the third richest man in America, will add more billions to his estimated $84-billion estate, thanks to President Trump's tax plan, a new analysis shows.

The oracle of Omaha's company, Berkshire Hathaway, will receive an estimated $37 billion bump due to changes in the tax code that benefit corporations. Buffett, who owns over 17 percent of Berkshire, will pocket an extra few billion dollars as well.

Berkshire will be among the greatest beneficiaries of U.S. corporate tax reform, analysts from Barclays told clients on Monday. The banking firm expects that Berkshire Hathaway's value will be up 12 percent by the end of 2017, once all the numbers are crunched, due to a decline in its deferred tax liability. Barclays analysts also expect another 12-percent increase in value this year from the GOP-led effort to reduce corporate taxes from 36 percent to 21 percent.

Still, Buffett was conflicted about the change in corporate tax rate, arguing that American businesses don't need any cut, he said.

"You could add the five largest companies in the United States by market value. That's almost 10 percent of the value to market. They don't need capital," Buffett said on CNBC in October.

And yet, it's hard to say no to free money. "On a personal basis and for Berkshire Hathaway shareholders, I hope they do change it now," he added.

Buffett's net worth is so tied to Berkshire's stock price that his salary was just $487,881 last year, a pittance by corporate standards. But the legendary investor owns nearly 38 percent of the company's class A stock, which trades at about $304,000 per share. Still, the GOP tax plan, which cuts the top income tax bracket from 39.6 percent to 35 percent, will save Buffett tens of thousands more on his 1040 form.

Taken together, the tax cuts are "one of the great robberies, criminal activities if you like, in the modern history of this country," said Democratic Senator Bernie Sanders. "At a time of massive income and wealth inequality, 62 percent of the tax benefits go to the top 1 percent."

Buffett also spoke out about the implications of the cuts and what they meant for wealth allocation in the United States. Thanks to Republican trickle-down theories that favor the wealthy, he said, children who were "lucky enough to come out of the right womb and have the right name, Buffett, could build tombs for themselves like Egyptian pharaohs never dreamt of."

Nonetheless, Trump and Congressional Republicans sold their tax plan as a boon to the middle class. "Tax reform will protect low-income and middle-income households, not the wealthy and well-connected," said the president in September. Once the bill passed, he was freer to be more candid: "You all just got a lot richer," he told a table full of wealthy and well-connected friends at his Mar-a-Lago resort in Florida.

Buffett and Bill Gates are co-creators of The Giving Pledge, which asks the world's wealthiest people to donate at least half of their wealth to philanthropic causes before they die. Since 2010, 173 billionaires have signed the pledge.

Buffett is one of them—though now he will have to work harder to get rid of those extra billions.