Which Way’s Up?

There is an entire industry devoted to this exact problem.  Many rich people step out of their bed every morning thinking, “I am rich and do not like paying taxes, who can I pay to lower my taxes?”

 The answer is anyone.  People like, Brent Bergan are featured in many an article from the heart of the housing boom.  Peter is “an attorney at Global Tax Network in Denver, which advises international corporations, individuals and small businesses on tax compliance.”  

Ah yes “tax compliance.”  That looks much nicer on the business card than “the kind of tax evasion that doesn’t get you thrown in jail”

Another guy you can pay to lower your tax bill,  Richard Cahan, insists that gone are the days where tropical tax haven can be use to evade income tax.  

Damn!  

what you find [instead] is most people setting up offshore trusts and offshore corporations for asset protection or divorce planning but no income tax evasion. They don’t want to go to jail.

So your job is to help them avoid jail?  Kind of like a mob attorney?  Let’s see I’m moving my assets around in a way that if not done exactly right . . . could land me in jail.  I better hire someone who knows how to walk the line of criminality without actually crossing it.

Please Mr. Cahan, go on.  

[My clients] come to me to ensure that their hard-earned wealth remains theirs and can be passed down to their families, as well as for legitimate and compliant offshore business planning.

Well that sounds nice.  Every American values the corporate responsibility that mega businesses to seek out “legitimate and compliant offshore business planning.”  Just make sure Mr. Cahan, that they are legitimate tax evasion methods.  I don’t want my tax evasion tainted by the scent of impropriety.  So where are you legitimately taking my money, anyhow?

many of [the legitimate offshore business planning hot spots] are the same tropical places which have gained notoriety as tax havens, and more recently, the home of flimsy corporate vehicles designed to evade taxes or conceal company debt.

I see.

Well nothing that’s made the news at least.  I don’t want to be associated with corporate crime.

Enron, for example, was recently revealed to have had 881 offshore subsidiaries, including 692 in the Cayman Islands alone, and many more in Turks and Caicos, Mauritius and Bermuda. Scandal-plagued companies like Parmalat and Halliburton used similar devices in the Cayman Islands, for one simple reason.

Tax Evasion!

Certain foreign countries have developed their own particular asset-protection laws, and they market themselves to people looking to set up offshore accounts,” says Thomas Wells, an attorney at Florida-based Berger Singerman

Right asset preservation, I keep forgetting to not call it tax evasion. Who am I preserving my assets from?  

What you find is most people setting up offshore trusts and offshore corporations for asset protection or divorce planning but no income tax evasion. They don’t want to go to jail.

I see a pissed off ex.  And from Uncle Sam getting his hands on my corporate profits, but not my income.  But wait, I’m the head of a large corporation is there anyway I can get my hands on corporate profits and put them in my bank account, but not in an income way because I heard Uncle Sam looks for that these days.

• Use a “Sham entity”

That seems like it could get a lot of people in trouble.

• You’re right.  Why don’t we just try to make middle-class people think that taxing the rich will inevitable lead to a tax on the poor?  Will that work?

Probably.

Which Way's Up? Politics Corruption, Politics, ridiculous, Stupid, taxes, the poor

Louisiana Gov. Bobby Jindal surveyed the sea of rising unemployment in his state and from a top his ivory tower extended a large middle finger in their general direction.  The thought bubble over his head read, “I see you suffering and I just don’t give a rats ass.”  But the words from his press release read:

The Governor said the state will not use a portion of the stimulus package that requires the state to change its law to expand unemployment insurance (UI) coverage to qualify for up to $32.8 million of the federal stimulus funding because it ultimately would result in a tax increase on Louisiana businesses. Qualifying for the $32.8 million provision is a precondition for being considered for another $65.6 million of federal unemployment insurance funds in the federal package, which would also require permanent changes to Louisiana law and additional annual spending.

He further adds that:

According to the Louisiana Workforce Commission (LWC), based on claims filed during 2008, the $32.8 million would run out in under three years and from that point on, the state would be required to pass along the cost of more than $12 million a year for supporting this expansion of benefits to Louisiana businesses.

So Bobby wants to turn down nearly $100 million dollars for the unemployed in Louisiana because in three years it could cost $12 million dollars a year to continue this expansion.  

Or Bobby could take the money and give it to the unemployed, thereby propping up private spending in his state for three years.  After which, if he deems it too expensive the benefits can return to their previous size and not require any increase in state taxes.

But instead Bobby’s turning down $100 million because in three years it could cost him $12 million.  Isn’t that a bit like turning down a bequeathment because you have to pay taxes on it?  Seems to me that Bobby is just looking to make some headlines, and has succeeded.  It’s good to see that there are still Republicans out there that are fiscally conservative enough to reject $100 million out of a possible $3 to 4 billion dollars in federal assistance (or 2 percent-ish).  And conservative enough to make sure it’s the most down trodden that pay the heaviest price.  It really does seem like a fresh face with fresh answers.  Against stem cell research, pro-life without exceptions, loves the PATRIOT Act, and always thinks tax cuts are the first and only solution.  Seems like the new GOP to me.

whichwayisup Politics 2012 elections, Bobby Jindal, fresh faces of the GOP, Republicans, Stimulus, the poor