What are some tax loopholes that these politicians rave about the rich exploiting? I hear this phrase so often but I have yet to hear a real example.
Is this politicalspeak to appease the voters?作者: jmh530 时间: 2011-10-9 05:01
Muni Bonds作者: ayaz_mahmud369 时间: 2011-10-9 05:07
I recall Ross Perot being slammed for this. He paid something like an 8% effective income tax rate due to his massive muni bond investment portfolio.
This thread could also serve as a nice resource for us rich CFA AFers come tax time.作者: smuggycfa 时间: 2011-10-9 05:13
Perhaps because I view "tax loophole" as having a negative connotation, I wouldn't categorize muni's as a tax loophole. The tax-exempt status for most muni's simply serves as a way for the federal government to help promote local development projects. If muni's weren't tax-exempt, towns and states would have to pay higher interest rates to attract buyers, effectively increasing the cost of every project and probably killing a lot of those projects.作者: transferpricing 时间: 2011-10-9 05:19
But... munis give you lower yield than taxable securities. So, supposedly, your tax savings are offset by the interest that you lose.作者: sameeragarwal 时间: 2011-10-9 05:25
Not every dollar of income is taxed the same way. Ergo, loopholes.作者: stockjaguar 时间: 2011-10-9 05:30
higgmond Wrote:
-------------------------------------------------------
> Perhaps because I view "tax loophole" as having a
> negative connotation, I wouldn't categorize muni's
> as a tax loophole. The tax-exempt status for most
> muni's simply serves as a way for the federal
> government to help promote local development
> projects. If muni's weren't tax-exempt, towns and
> states would have to pay higher interest rates to
> attract buyers, effectively increasing the cost of
> every project and probably killing a lot of those
> projects.
+1.
15% Tax on Dividends? LTCG? Limited Partnerships? I dunno, I'm not rich, just some places to start your search.作者: b_sea93 时间: 2011-10-9 05:42
Jerry: So, we're going to make the post office pay for my new stereo now?
Kramer: It's a write-off for them.
Jerry: How is it a write-off?
Kramer: They just write it off.
Jerry: Write it off what?
Kramer: Jerry, all these big companies, they write off everything.
Jerry: You don't even know what a write-off is.
Kramer: Do you?
Jerry: No, I don't!
Kramer: But they do. And they're the ones writing it off.作者: LorrinCFA 时间: 2011-10-9 05:47
NakedPuts Wrote:
-------------------------------------------------------
> Jerry: So, we're going to make the post office pay
> for my new stereo now?
> Kramer: It's a write-off for them.
> Jerry: How is it a write-off?
> Kramer: They just write it off.
> Jerry: Write it off what?
> Kramer: Jerry, all these big companies, they
> write off everything.
> Jerry: You don't even know what a write-off
> is.
> Kramer: Do you?
> Jerry: No, I don't!
> Kramer: But they do. And they're the ones
> writing it off.
+1 Absolute classic, its called mail fraud Seinfeld, all you'll have to do is pay a small fine....作者: hassan 时间: 2011-10-9 05:53
Stocks & Blondes Wrote:
-------------------------------------------------------
> NakedPuts Wrote:
> --------------------------------------------------
> -----
> > Jerry: So, we're going to make the post office
> pay
> > for my new stereo now?
> > Kramer: It's a write-off for them.
> > Jerry: How is it a write-off?
> > Kramer: They just write it off.
> > Jerry: Write it off what?
> > Kramer: Jerry, all these big companies,
> they
> > write off everything.
> > Jerry: You don't even know what a write-off
> > is.
> > Kramer: Do you?
> > Jerry: No, I don't!
> > Kramer: But they do. And they're the ones
> > writing it off.
>
>
> +1 Absolute classic, its called mail fraud
> Seinfeld, all you'll have to do is pay a small
> fine....
NICE!!!!!!!!作者: RMontgomery 时间: 2011-10-9 06:04
ohai Wrote:
-------------------------------------------------------
> But... munis give you lower yield than taxable
> securities. So, supposedly, your tax savings are
> offset by the interest that you lose.
Are you saying the yield on muni's is lower than the after-tax yield on taxable bonds of comparable risk?作者: mdfb79 时间: 2011-10-9 06:10
No, theoretically, after tax yield for both should be the same. However, as someone else said, there might be tax nuances that cause this relationship to deviate for different investors.作者: Swanand 时间: 2011-10-9 06:16
This is all bollix so far. The tax loopholes are the ones that companies and wealthy families use. Creating a trust in an offshore location to pay 0% tax is the big one. I'm looking at you Caymans/BVI/Liechtenstein/Monaco and so on and so on and so on.
Case in hand: Philip Green owner of Top Shop in the UK and other retail outlets. Net worth ￡4bn
Lives in London. Owner of his companies: his wife. Wife lives in Monaco and pays ￡0 British tax. Get it now?
There was a great article on the Rausing family, creators of the tetrapak (what your milk comes out of). They set up a charity as the recipient of their companies income - the charity pays 0% on income. The beneficiaries of the charity? Billionaires Guy & Hans Rausing (a bit more complex than this but this is effectively it).
And companies set up their head office in Caymans etc. It is a copper plate on a door. For which they pay... you guessed it... 0% tax.
Is that making the point clearer?作者: HuskyGrad2010 时间: 2011-10-9 06:22
When his wife files for divorce, life will really suck for Philip Green作者: troymo 时间: 2011-10-9 06:27
Dude_CFA Wrote:
-------------------------------------------------------
> This is all bollix so far. The tax loopholes are
> the ones that companies and wealthy families use.
> Creating a trust in an offshore location to pay 0%
> tax is the big one. I'm looking at you
> Caymans/BVI/Liechtenstein/Monaco and so on and so
> on and so on.
>
> Case in hand: Philip Green owner of Top Shop in
> the UK and other retail outlets. Net worth ￡4bn
>
> Lives in London. Owner of his companies: his wife.
> Wife lives in Monaco and pays ￡0 British tax. Get
> it now?
>
> There was a great article on the Rausing family,
> creators of the tetrapak (what your milk comes out
> of). They set up a charity as the recipient of
> their companies income - the charity pays 0% on
> income. The beneficiaries of the charity?
> Billionaires Guy & Hans Rausing (a bit more
> complex than this but this is effectively it).
>
> And companies set up their head office in Caymans
> etc. It is a copper plate on a door. For which
> they pay... you guessed it... 0% tax.
>
> Is that making the point clearer?
