Billionaire investor Warren Buffett is keenly aware of the potential for gross inequality in the very system that has allowed him his own success. The octogenarian investor is worth almost $80 billion and is the third richest person in the world, according to Forbes.

"I don't think I need a tax cut," Buffett tells CNBC regarding the recently released Republican tax plan.

The new tax framework would eliminate the estate tax, which is levied on money and assets transferred from one person to another at the time of death. Nixing the "death tax" would be a "terrible mistake," says Buffett, because he says that change inordinately benefits the rich.

"The truth is: if they passed the bill that they're talking about, I could leave $75 billion to a bunch of children and grandchildren and great grandchildren, and if I left it to 35 of them, they would each have a couple of billion dollars," all without having to pay tax to receive the inheritance, says Buffett, who has three grown kids.

"Is that a great way to allocate resources in the United States?"