11:07 AM:  Questions focusing on whether estate tax makes family businesses vulnerable to takeovers by large Wall Street firms and big competitors.

11:11 AM: Senator Rockefeller now countering with statement about need for fairness in  American tax code, wealthy need to pay their share.  Bush tax cuts have mostly helped the very rich.  He also agues calling the tax a "death tax" is inaccurate because it implies everyone who dies gets taxed.  Very few numbers of people would benefit from elimination of estate tax but a very large amount of government revenue would be lost.

11:15 AM: Buffett is asked how the estate tax should be reformed.  Buffett says exemption should be at $4 million and that estate tax rate should slope higher at larger amounts.  As far as passing on wealth dynasties, rate should be higher than 45%.

11:20 AM: Buffett asked how big is the issue of uncertainty in estate tax.  Buffett says it is enormous, shouldn't have to guess when you are going to die.

11:22 AM:  Buffett suggests estate taxes be deferred until a business leaves the family, rather than be imposed at the death of each generation.

11:24 AM:  Senator Lincoln asks financial planner on panel if exemption was at a reasonable amount, say $4 million, wouldn't it make all the complex planning and strategies unncessary.  Teitell agrees.

11:27 AM:  Hearing room still packed.  No one has left.  Most people listening intently, some taking notes.

11:29 AM: Washington State Senator Cantwell says especially interested in how estate taxes affects family-owned businsses.  Buffett replies that estate taxes on large successful businesses are tough but not debilitating.  "You don't complain too much when you win the lottery."  When you have a business that's bringing in income, thus justifying a large overall value, the estate taxes are affordable.

11:33 AM:  Buffett again argues that there's money left over for family-owned businesses that are earning money, despite the estate tax.  They may not want to pay the taxes, but they can, far more easily than can the average American.  In effect, having to pay estate taxes is a good problem to have.

11:35 AM:  Chairman Baucus asks estate tax opponents what they can live with, noting that very improbably estate tax will be repealed entirely.  Rancher Rhoads says most families in his state could live with $4 to $6M exemption, indexed for inflation.

11:37 AM:  Sukup disputes Buffett's argument that there would be enough money to pay estate taxes on his family business, which he values at $75 million.  He says his sons would have to either sell or borrow.

11:42 AM: Senator Kyl suggests life insurance industry benefits by selling policies designed to help shield people from estate taxes.  Buffett points out that none of his companies directly sell life insurance.  Kyl argues estate tax should be reformed (not enough votes to repeal" and again mentions the $4 million exemption  level several have been throwing around this morning.

11:47 AM: Sukup, from standpoint of family business owners, argues exemption should be much higher and estate tax rate should be lower, say 15%.  Sukup agrees with questioner that estate tax poses the biggest threat of all the potential tax changes (income, capital gains) that could endanger the continuation of his business.

11:56 AM:  Video clip of Buffett's entire opening statement is now available.

12:00 PM: Buffett says he would have no objection if estate taxes were deferred with interest until a family sells a business, so that families would not be forced into selling or borrowing to pay the taxes upon the death of a family member.

12:03 PM: The hearing is over.

12:12 PM:  After the hearing Buffett spoke briefly with reporters.  He limited his comments to the estate tax, declining to answer anything on the markets or credit crunch.  I asked him if he thought the estate tax exemption would wind up around the $4 million figure that's been mentioned.  He said he had no idea.  I'll be bringing the videotape back to CNBC's Washington Bureau so I can post it here on WBW.

12:15 PM:  After his very brief chat with reporters, Buffett walked out of the hearing room and down the hallway to the elevators.  He was trailed the whole way by a couple of TV cameras and still photographers. While waiting for the elevator, he chatted with one of the photographers about how it seems they always have to take a lot of pictures of him to get a good shot. At one point, it looked like the elevator had arrived, and he said good-bye to those standing around taking pictures.  When the elevators doors did not open right away, he joked, "It seems the elevators here don't stop for billionaires."  Finally the door opened, Buffett got on and started heading home to Omaha.

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