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Warren Buffett's company hit with $896,000 fine from Justice Department

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FILE - This July 14, 2014 file photo shows Attorney General Eric Holder speaking at the Justice Department in Washington. Holder said Thursday he's concerned about police use of military equipment in Ferguson, Mo. (AP Photo/Pablo Martinez Monsivais, File) AP Photo/Pablo Martinez Monsivais, File

Warren Buffett, the inspiration for the Obama administration's push for higher taxes on the wealthy, agreed to a different kind of income redistribution on Wednesday.

According to the Justice Department, Buffett's Berkshire Hathaway consented to paying an $896,000 fine for not telling regulators about a 2013 investment in USG Corp.

Attorney General Eric Holder announced a big fine against Berkshire Hathaway on Wednesday. (AP Photo/Pablo Martinez Monsivais, File)

Justice said that failure to notify is a violation of a 1976 law that imposes notification and waiting period requirements on transactions above a certain size. Under the law, civil penalties of up to $16,000 per day can be imposed against violators.

Justice said it would file a civil antitrust lawsuit in Washington on Wednesday, but also said it would propose the $896,000 settlement, and said the company has agreed to that settlement.

In 2012, the Obama administration made a push for a "Buffett rule" in the tax code that would impose a minimum 30 percent tax rate on the income of high-income earners. Officials called it the Buffett rule because Buffett once said various loopholes allow him to pay a lower marginal tax rate on his income than his secretary.

Democrats in Congress then tried to pass legislation calling for a minimum 30 percent tax rate on all income above $2 million, but it went no where in light of Republican opposition.

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