After the news came out about Trump paying very low taxes in recent years, Larry Elder was left wondering: Where are all the people who are paying more in taxes than they’re legally required to? How would this possibly make sense to a businessman? Meanwhile, experts say there is nothing wrong with arranging your financial affairs to pay the lowest amount of taxes possible. Everyone does it, rich or poor. (See also: “NYTs Buries What Trump Paid in Taxes“)
(Originally posted October 26, 2011 — edited slightly)
NEWSBUSTERS Comments on the above video:
This causes a question, the question is, “how much does the 1% earn…. and who are the 1%” Thanks to the Financial Samurai
WHAT THE TOP 1%, 5%, 10%, 25% and 50% MAKE IN AMERICA
Financial Samuri has two follow up stories that are really good:
- When It Comes To Money, Shouldn’t We Trust Rich People Who’ve Been Poor?
- Who Are The Top 1% Income Earners?
Both are good articles that are poignant. But here is a portion from that first one that many do not ask:
Michael Medved deconstructs Abigail Disney’s positions in her video activism attacking [mainly by straw-men] the new Tax law. (Abigail is the grand-daughter of Walt Disney’s brother, Roy O. Disney.) Many disagreeing calls are taken, per Medved’s habit.
I feel like I shouldn’t have to upload this ECON 101 type stuff, however, many may not realize this fact… ESPECIALLY if they went to college. I clip Dennis Prager noting this truth and then add a classic from Milton Friedman (longer video is HERE). See as well Congressman Bill Posey make the same point on the House floor.
This interview took place minutes after the House passed the tax bill. There were things in this bill I had no idea were in there. Here is what I posted on my Facebook:
- I finally know why the Dems are Soo bent out of shape over the tax bill. I was listening to Rush Limbaugh interview Paul Ryan. Wow! Talk about a YUGE conservative win on many fronts. F-O-R INSTANCE – ANWR is opened up for energy resources! WOW! You know how many years Repubs and conservatives wanted this! Awesome.
GAY PATRIOT comments on the main idea that the Left are a bunch of babies with almost zero understanding of anything economic:
- It is comical to see Democrats feigning outrage over the claim (likely false) that the GOP tax reform plan will add to the national debt. Talk about a head-snapping about face! Where was the Dems’ concern about debt when the Obama administration ran up $10 trillion of it?
Did you know that U.S. businesses are taxed at one of the highest rates in the developed world? How bad is it? And why should you care? Watch this short video to find out.
This video is part of a collaborative business and economics project with Job Creators Network. To learn more visit about JCN.
Dennis Prager reads from an IBD ARTICLE about the benefits from Trump’s tax plan… AS WELL AS starting out the show by showing the ludicrous nature of the envious Left. I include a dissenting call to end the upload.
GAY PATRIOT has some key bullet points:
- Slightly lower personal income tax rates. (Top rate from near-40% to 35%.)
- Eliminating almost all income tax deductions, except mortgage interest and charitable contributions.
- Much lower corporate income tax rates. (Top rate from 35%, one of the world’s highest, to 15%.)
- A one-time tax on overseas business profits. (That haven’t been repatriated to the U.S. Apple has a lot.)
- A “territorial system” where future profits that corporations earn abroad, are not taxed.
- Repealing a bunch of taxes and complications, most notably the Alternative Minimum Tax (AMT) and the estate tax.
Here is an excerpt from the article mentioned:
The NYT’s was against paying taxes before they were for it. This isn’t an argument against Trump (or the New York Times) as much as is is against the progressive tax code.
To set this story up, we will travel to THE YOUNG CONSERVATIVES regarding the New York Times and Trump’s taxes:
The only problem is, that, the New York Times didn’t pay any taxes as well. Why? Becuase when you are a business/business owner and you have loses… then you can claim those loses. L-E-G-A-L-L-Y! Here is the story from BREITBART:
Upstate New York is becoming Detroit with grass.
Binghamton, New York — once a powerhouse of industry — is now approaching Detroit in many economic measures, according to the U.S. Census. In Binghamton, more than 31 percent of city residents are at or below the federal poverty level compared to 38 percent in Detroit. Average household income in Binghamton at $30,179 in 2012 barely outpaces Detroit’s $26,955. By some metrics, Binghamton is behind Detroit. Some 45 percent of Binghamton residents own their dwellings while more than 52 percent of Detroit residents are homeowners. Both “Rust Belt” cities have lost more than 2 percent of their populations.
Binghamton is not alone. Upstate New York — that vast 50,000-square mile region north of New York City — seems to be in an economic death spiral.
The fate of the area is a small scene in a larger story playing out across rural America. As the balance of population shifts from farms to cities, urban elites are increasingly favoring laws and regulations that benefit urban voters over those who live in small towns or out in the country. The implications are more than just economic: it’s a trend that fuels the intense populism and angry politics that has shattered the post-World War II consensus and divided the nation.
“Basically what you’ve got in New York is a state tax code and regulatory regimen written for New York City,” says Joseph Henchman, vice president for state projects at the Tax Foundation in Washington. “Legislators say, `Look, New York is a center of world commerce. Businesses have to be here. It doesn’t matter how high we tax them.’ I hear that a lot. But when you apply that same logic to upstate, the impact is devastating.”
The lives of Bill and Janet Sauter, brother and sister, sum up the sad story of upstate New York. They grew up in the Long Island suburbs. He went to Clarkson College in Potsdam, N.Y., near the Canadian border, studied software and enjoyed a highly successful career in Texas’ oil industry.
Janet went upstate too, marrying a minister and settling in rural East Chatham, 30 miles south of Albany. In 1999, she and her husband wanted to move to Texas to be closer to their daughter. But they couldn’t sell their home. Months passed without a single inquiry. For Janet, there was no escape from New York. Her neighbors had similar experiences, she said.
Bill is now retired and living in Steamboat Springs, Colo., where he skis at every opportunity — while Janet and her husband Bob are trying to eke out a living in what has become one of the poorest regions in the country. “There just isn’t much work around here,” says Janet, who supplements her husband’s income by working all night in a home for the elderly. “I’m lucky to have this job.”
Industry has fled upstate New York. “In 1988, Kodak employed 62,000 people in Rochester,” says Sandra Parker, president of the Rochester Business Alliance. “Today it employs 4,000. Xerox has moved most of its people out while Bausch & Lomb, which was founded in Rochester in 1858, has left entirely.”
As a result, Rochester is now the fifth poorest city in the country, with 31 percent of the population living in poverty. Buffalo is right behind at No. 6 (30 percent).
Syracuse was devastated when Carrier, the nation’s largest manufacturer of air conditioners, General Electric and auto-parts manufacturer Magna International shuttered their last manufacturing plants in Onondaga County. A Wall Street Journal survey of the nation’s 2,737 counties, shows that only nine other counties have suffered greater job losses per capita than Onondaga County since 2009.
Bob and Janet Sauter were not alone in their desire to leave New York for more prosperous parts of the country. New York state has lost 350,000 people in the past three years, according to the Empire Center for New York State Policy, an Albany-based research group. This is the largest out-migration of any state.
New York was the most populous state in the union in 1960, with 45 representatives in Congress. By 2012, New York fell to third place and its congressional delegation plummeted to 28. The 2020 Census will likely cost New York even more congressional seats. Without the hundreds of thousands of immigrants moving into New York City, the state’s depopulation would be even greater. A remarkable 36 percent of New York City is foreign born — twice the percentage in 1970….
The city of Buffalo tried to disincorporate itself in 2004, so it could shift its Medicaid burden onto surrounding Erie County. The state wouldn’t allow it. It’s probably just as well, say county officials. “Our entire property tax goes to supporting Medicaid,” says Erie County executive Mark Poloncarz.
States generally have three potential sources of revenue: the income tax, the sales tax and the property tax. “Usually a state will concentrate on one and go low on the other two,” says Joseph Henchman of the Tax Foundation. “New York is in the top six states for all three.”
The Tax Foundation rated New York dead last among the 50 states for business climate in 2013.
Generosity = True Character!
When the Obama campaign released past tax returns for Biden in 2008, it was revealed that the Bidens donated just $3,690 to charity over 10 years — an average of $369 a year.
♦ 2005: $77,315 to charity out of income of $1.66 million (4.6 percent)
♦ 2004: $2,500 out of $207,647 (1.2 percent)
♦ 2003: $3,400 out of $238,327 (1.4 percent)
♦ 2002: $1,050 out of $259,394 (0.4 percent)
The slightly longer video/audio of the below can be found here… I cut out the Benghazi commentary for this posting. This was originally uploaded to my MRCTV account in September 26, 2012:
From Video Description:
What many Democrats seem to forget is that the reason for Big Business to join forces with Big Government, is to run any threat of competitiveness out of the market. To MONOPOLIZE. Obama’s policies are proving that these Big Businesses are not altruistic in their reasoning for pursuing such causes like Obama-Care and raising of taxes and more regulatory conditions. From over Obama-Care 2,000 waivers, to the stories below, Obama’s policies are filling the rolls of LARGE insurance carriers and forcing small companies who cannot compete with large “Warren Buffett” type firms to move many of their full-time workers to part time. FAILED policies.
What is funny — to give one more example — a family member of one of the Gay Patriots told him he was voting for Obama because he thought Republicans wanted to cut Pell Grants. Sorry Charlie:
Sorry, college students. President Obama has cut your access to Pell Grants by 33%; he just forgot to mention it before Election Day. During the recent campaign, President Obama claimed credit for increasing funding to the Pell Grant program, which provides college funds, free from repayment, to millions of students.
This cut in eligibility was never mentioned by President Obama during the campaign, and when he boasted about increasing funding to the Pell Grant program, CNN fact-checked his claim as true. While the amount of government funding to the program is going up in future years, CNN failed miserably by not pointing out the cuts in eligibility to students. The cuts could be a rude awakening to students who thought President Obama was expanding their educational opportunities.
Hollywood is another example of this hypocrisy of avoidance, proving, yes PROVING, the Republican position. Hollywood and most in it campaign for higher taxes. But what is wrong with this is that after these taxes hit, they leave California to shoot movies in other states with lower tax-rates. Here Adam Corolla and Dennis Prager talk about this:
Another example of what Democrats voted for, unlike Bill Clinton who, yes, raised taxes but REFORMED social programs and CUT spending at the time. Obama is offering another stimulus (more government spending) that is about equal to any forecast gain in tax increases/revenue — the exact opposite of Clinton!
Like medical giant, Stryker, one of Obama’s biggest financial backers, laying off almost 1,200 workers to prep for Obama-Care, and the falling revenue (33%) of the Californian government showing in the the micro what higher taxes and more regulation does to the engine of the economy. Here are more stories of failure, and how these higher taxes will hit the retired folks that worked hard their whole lives, just to see it disappear. Google and Microsoft are two of Obama’s largest financial backers (Bloomberg):
The company avoided about $2 billion in worldwide income taxes in 2011 by shifting $9.8 billion in revenue into a Bermuda shell company, almost double the total from three years before, filings show.
Governments in France, the U.K., Italy and Australia are probing Google’s tax avoidance as they seek to boost revenue. Schmidt said the company’s efforts around taxes are legal.
We pay lots of taxes; we pay them in the legally prescribed ways,” he said. “I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate.”
The company isn’t about to turn down big savings in taxes, he said.
“It’s called capitalism,” he said. “We are proudly capitalistic. I’m not confused about this.”
Google’s overall effective tax rate dropped to 21 percent last year from about 28 percent in 2008. That compares with the average combined U.S. and state statutory rate of about 39 percent.
Costco also was a huge supported of Obama and is borrowing money to avoid paying higher taxes on it now (WSJ):
When President Obama needed a business executive to come to his campaign defense, Jim Sinegal was there. The Costco COST +1.92% co-founder, director and former CEO even made a prime-time speech at the Democratic Party convention in Charlotte. So what a surprise this week to see that Mr. Sinegal and the rest of the Costco board voted to give themselves a special dividend to avoid Mr. Obama’s looming tax increase. Is this what the President means by “tax fairness”?
Specifically, the giant retailer announced Wednesday that the company will pay a special dividend of $7 a share this month. That’s a $3 billion Christmas gift for shareholders that will let them be taxed at the current dividend rate of 15%, rather than next year’s rate of up to 43.4%—an increase to 39.6% as the Bush-era rates expire plus another 3.8% from the new ObamaCare surcharge.
More striking is that Costco also announced that it will borrow $3.5 billion to finance the special payout. Dividends are typically paid out of earnings, either current or accumulated. But so eager are the Costco executives to get out ahead of the tax man that they’re taking on debt to do so.
To sum up: Here we have people at the very top of the top 1% who preach about tax fairness voting to write themselves a huge dividend check to avoid the Obama tax increase they claim it is a public service to impose on middle-class Americans who work for 30 years and finally make $250,000 for a brief window in time.
If they had any shame, they’d send their entire windfall to the Treasury.
Other companies as well that bundled, supported money (and press time to) Obama are doing the same (Townhall):
One of the people who will benefit from this deal will be Costco’s co-founder and former CEO Jim Sinegal who owns more than two million shares of its stock and will collect about $14.4 million from the special dividend. Had he taken that next year, he could be slapped with a tax rate of 43.4 percent if Obama’s proposed tax increases become law (boosting the tax rate on dividends to over 20 percent and adding a surcharge tax on millionaires).
Instead, Costco decided to pay its stockholders before Dec. 18 so that the special payoff plus a regular quarterly cash dividend of 27.5 cents will be taxed at the current 15 percent rate under the investment tax cuts wisely enacted under President George W. Bush in 2003.
This means Sinegal, who gave a prime-time speech in behalf of Obama’s re-election at this summer’s Democratic national convention, would avoid paying about $4 million in higher taxes next year.
Costco is not alone in its early tax-avoidance payouts. Many American businesses, from Wynn Resorts to Tyson Foods, have also declared special dividends to avoid the higher tax rate if the Bush rates expire.
One of the most notable Fortune 500 companies to join the pack is the Washington Post who endorsed Obama for a second term and has warmly embraced his tax increase plans. The media conglomerate has announced it will pay its 2013 dividends “before the end of this year to try to spare investors from anticipated tax increases,” reports the Associated Press.
Among those who stand to benefit from the Post’s beat-the-tax-deadline — and pocket a bundle of money — will be stock tycoon Warren Buffet and his Berkshire Hathaway firm, the newspaper’s biggest shareholder.
How can governments stop people from doing this, besides the right thing and lowering taxes to increase the amount of businesses staying in our country and wanting to move their operations here? Why, enforce the law with threat of prison and fines! Here is an example from France, whom, you’ll remember, raised the top rate to 75%, here is a story from Libertarian Republican (“stopped at the border… ‘papers please'”):
The President of France, François Hollande, announced today the possibility of reviewing the existing tax treaties with Belgium to prevent welthy people from moving to the neighboring country in order to evade taxes. One of the most recent cases was that of the famous actor Gerard Depardieu, who decided to set his house in the Belgian town of Néchin, where other wealthy French citizens live in order to benefit from a more lenient tax regime. “Everyone should have and ethical behavior, regardless of his job,” Hollande told reporters. The tax exile of the highest paid actor in France was described as a lack of patriotism, especially since he always boasted of its popular origins and occasionally denounced social inequities.
What other option is there? If you are Big Government that is!
1) On a dark street, a man draws a knife and demands my money for drugs;
2) Instead of demanding my money for drugs, he demands it for the Church;
3) Instead of being alone, he is with a bishop of the Church who acts as the bagman;
4) Instead of drawing a knife, he produces a policeman who says I must do as he says;
5) Instead of meeting me on the street, he mails me his demand as an official agent of the government.
If the first is theft, it is difficult to see why the other four are not also theft.