5 ms·
Moguls Rent South Dakota Addresses to Dodge Taxes Forever
- IvyMike 13y agoTo steal a great phrase, every time I hear a story like this, I know the guillotines are coming closer.
- zaqokm 13y agoThe rich may be reducing their tax, but look how the government spends their own tax revenue, not much will change when the government spends trillions on their war effort.
- bradleyjoyce 13y agoWhen I read stories like this I often wonder, would I do things any differently if/when I have that much money? Would you?
- deleted 13y ago[deleted]
- lisper 13y agoThese guys do: http://patrioticmillionaires.org http://patrioticmillionaires.org
- mudil 13y agoNo, you wouldn't. The thing is that all that top wealth is managed by a group of accountants and lawyers. Highly professional accountants and lawyers. (My friend is an accountant here in Silicon Valley who manages wealth for billionaires in a large accounting firm. He describes me some ways how they manage wealth.) So these people's role role, their only role, is wealth preservation, meaning tax minimization and avoidance. They know all the laws, rules and regulations, and they have fiduciary duty to manage the wealth efficiently and conservatively. Hence they will go to tax heavens and offshore, if needed.
- brady747 13y agoThen I guess the question becomes, you appear in an article in Bloomberg about how you are using this loophole. Now what do you do?
- deleted 13y ago[deleted]
- deleted 13y ago[deleted]
- bagels 13y agoSo, every time a story like this comes up, it makes me wonder... Does anyone offer services like this for non-millionaires and non-billionaires?
- w1ntermute 13y agoProbably not, because it's not worth their time.
- gamblor956 13y agoIf you're not in the highest marginal rate bracket, or most of your income is not investment income, it's generally not worth the expense of paying for these services. Fees for these services generally start at $10,000, and only go up from there.
- w1ntermute 13y agoOut of curiosity, is any of this process of moving money around amenable to automation? Can the "rules" be systematized in software?
- gamblor956 13y agoYes, but the process of creating and more importantly updating that software would involve so much human input that you wouldn't end up with much of a net gain in terms of time or costs saved. US federal tax laws change every year, and are so interconnected that quite frequently small changes in one tax law can have massive impacts on entirely different areas of law. And that doesn't even take into account state and local taxes, or the taxes of the foreign jurisdictions you'd be dealing with, or the impacts that tax treaties could have, or even the impact that non-tax laws may have on financial transactions.
- brianbreslin 13y agoThis reminds me of an article recently in businessweek about the tax loophole with trusts that Sheldon Adelson uses. http://www.bloomberg.com/news/2013-12-17/accidental-tax-break-saves-wealthiest-americans-100-billion.html http://www.bloomberg.com/news/2013-12-17/accidental-tax-brea...
- dmk23 13y agoWhat would you expect? If you live in a state like California and are in the highest tax bracket, your total tax rate (federal + state + local + various surtaxes) would be close to 60%. It is ludicrous to expect most people to just fork over such an outrageous percentage of their earnings without complain. No wonder the high-income individuals are fleeing high-tax states and "tax-the-rich" ideology is failing to fill the states' coffers. Raising taxes hurts poor people more than the rich. http://www.forbes.com/sites/trulia/2013/02/12/jobs-arent-leaving-california-for-texas-but-people-are/ http://www.forbes.com/sites/trulia/2013/02/12/jobs-arent-lea...
- deleted 13y ago[deleted]
- dmk23 13y agoWho are YOU to tell ME what I "need"? If you want to "collectively decide" how to "better use" MY money, I can just move it to a different jurisdiction and you'll get what you deserve - nothing. If the value of what your "collective decision" gives me for "60% tax bill" is not there, the money will rightfully leave. There is a great parable explaining how this works: http://danieljmitchell.wordpress.com/2012/03/18/the-tax-system-explained-in-beer/ http://danieljmitchell.wordpress.com/2012/03/18/the-tax-syst...
- kevinchen 13y ago"In my explanations of the Laffer Curve" closes tab
- throwaway2048 13y agoI'm sure public infrastructure, public schooling, police and fire departments, national defense, etc etc had absolutely nothing to do with your success, and society as a whole does not deserve a single cent back. "Fuck you, I got mine" at its finest.
- tolmasky 13y ago
- tn13 13y agoSounds like a good strategy. If I had so much money I would hire some of the smartest people in the world to save my taxes whatever way possible as long as the government (read as legal extortion gang) cant put me behind bars for it.
- gamblor956 13y agoTax shelters are very tricky. Unlike most other crimes, it's possible to be convicted of tax fraud even if the tax shelter was legal (or at least not illegal) at the time the shelter was put into place. This is generally because many tax provisions look to the facts-and-circumstances of a transaction or an item of income rather than to the strict letter of the regulations.
- sanxiyn 13y agoThe article considers the rule against perpetuities to be an obviously good thing, but I have my doubt. Consider this argument for example: http://www.overcomingbias.com/2010/03/parable-of-the-multiplier-hole.html http://www.overcomingbias.com/2010/03/parable-of-the-multipl...
- vinhboy 13y agoIt's really stupid of me, but everytime I read about taxes, I am always "re"-amazed at how much money get spent on protecting money.
- eigenvalue 13y agoWow, who would have thought the Rule against perpetuities had actual implications in modern American law! I thought it was more of a trivia question that law professors might ask about in a property law class. Next thing you know, we'll be reading an article discussing the Rule in Shelley's Case!
- furtivefelon 13y agoA quote from the article: "Just $1 million invested in a dynasty trust, and earning 12 percent a year, would swell to $1.9 billion in 85 years". So my question is how do I find a investment vehicle that gives me 12% return compounded year after year?