While explaining why Berkshire Hathaway trimmed its Apple position at the annual shareholder meeting on Saturday, Warren Buffett made a comment that drew huge applause from the audience. The investment guru noted that Berkshire pays taxes at a 21% federal tax rate on the capital gains it earns on its Apple investment.

Warren Buffett said he expects the U.S. government to increase taxes to tackle widening fiscal deficits rather than reduce spending. "I think higher taxes are likely," he said on Saturday at Berkshire Hathaway's annual shareholder meeting in Omaha.

US taxes are likely to rise as lawmakers look to narrow the federal deficit, Warren Buffett said, as Washington prepares for major tax negotiations next year.