posted on May 5, 2004 08:16:54 AM new
here is something of thought....could it explain all those tax cuts.....plus all the corporate scandals...
THE COVERT CAMPAIGN TO RIG OUR TAX SYSTEM TO BENEFIT THE SUPER RICH AND CHEAT EVERYBODY ELSE.
The author, an investigative reporter for the New York Times, discusses America's tax codes and their changes in recent years, which favor the rich and belabor the middle class and the poor. He exposes weaknesses in the IRS, and disseminates "middle class tax cuts"--what they actually mean and who they benefit, and how some corporations are able to avoid paying any income tax whatsoever. Also discussed are changes to the tax code that have allowed fallen CEOs to leave their companies with millions, while workers are being cheated out of their own retirement plans
Publisher's Note
One of the country's top investigative reporters reveals how the richest 1 percent of the country has rigged the tax code and other laws in its favorSince the mid-1970s, there has been a dramatic shift in America's socioeconomic system, one that has gone virtually unnoticed by the general public. Tax policies and their enforcement have become a disaster, and thanks to discreet lobbying by a segment of the top 1 percent, Washington is reluctant or unable to fix them. The corporate income tax, the estate tax, and the gift tax have been largely ignored by the media. But the cumulative results are remarkable: today someone who earns a yearly salary of $60,000 pays a larger percentage of his income in taxes than the four hundred richest Americans.Pulitzer Prize-winning investigative reporter David Cay Johnston exposes exactly how the middle class is being squeezed to create a widening wealth gap that threatens the stability of the country. By relating the compelling tales of real people across all areas of society, he reveals the truth behind:--"middle class" tax cuts and exactly whom they benefit--how workers are being cheated out of their retirement plans while disgraced CEOs walk away with millions--how some corporations avoid paying any federal income tax--how a law meant to prevent cheating by the top 2 percent of Americans no longer affects most of them, but has morphed into a stealth tax on single mothers making just $28,000--why the working poor are seven times more likely to be audited by the IRS than everyone else--how the IRS became so weak that even when it was handed complete banking records detailing massive cheating by 1,600 people, it prosecuted only 4 percent of them Johnston has been breaking pieces of this story on the front page of The New York Times for seven years. With PERFECTLY LEGAL, he puts the whole shocking narrative together in a way that will stir up media attention and make readers angry about the state of our country
posted on May 5, 2004 12:31:05 PM new
I have the book and what is going on is disgusting.
It is funny how many of the droids and chumps on this board are anti-tax and think it is great that free loader wealthy people game the system while working people pay the way for everyone. They think the answer is to allow our schools, justice system, roads, all of our civil infrastructure decay while these wealthy people play for free.
Bill Gates set up trusts that allows him to pay no taxes on the billions in Mircosoft stock he won. In fact he actually get a tax deduction when he cashs in millions in MS stock. One poster here remarked how Gates is one of the biggest chartible givers- but in reality he is not - he is just giving away some of his stock to HIS charitible trusts, which he also derives up to an 80% income from. It is amazing.
And Gates is just one of thousands of billionaires and millions of millionaures that pay less taxes than a wroking person making $60,000 a year.
posted on May 5, 2004 12:58:23 PM new
While I agree that Gates is probably well sheltered from taxes corporately, I must say that he does give a lot charitably.
My own library is the recipient of his giving. Through his Gates Foundation, Gates has given computer labs to libraries all over this country, from little one-room rural libraries to inner-city libraries. Our library got 14 PCs, a full complement of software (including educational software), and money to buy the computer furniture and build the lab itself.
____________________
We are not afraid to entrust the American people with unpleasant facts, foreign ideas, alien philosophies, and competitive values. For a nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people. -- John F. Kennedy
posted on May 5, 2004 03:54:30 PM newhe does give a lot charitably.
But that's the point- he is not really giving anything AND HE NOT JUST SHELTERED "CORPORATELY"-- HE IS SHELTERED PERSONALLY. His charitable trust is giving and at the same time generating income for him and making all of his wealth tax free.
Here's how it works from the lawyer Jonathan Blattmachr who advised Gates about the trusts.
The trick is manipulating chartable trusts. Take $200 million worth of MS stock; and because it is going to the charitable trust, there will be no $56 million Gates would owe in capital gains taxes. Gates would also receive at least $6 million in tax deductions for this "charitable" activity. And that's just for starters.
The private chartable trust sells the MS stock and invests it, giving the donating individual a lifetime income from the investements.
But it gets better. Blattmachr sets it up so that Gates can take back up to 80% of the trust assets for two years. So for $200 million of MS stock, Gates gets $192 million and the charity gets $8 million. Gates pays no taxes on the $200 million, and in fact gets more income and tax deductions for reaping $200 million in capital gains.
This is just one way to do it. As soon as the IRS blocks this way Blattmachr has devised another. But thus far there is no record of the IRS challenging this "accelerated chartitable remainder trust" in tax courts.
At least Kerry wants these people to pay their fair share. Right now they are paying next to nothing.
