Remember a few years back when billionaire Warren Buffett attempted to sound humanitarian and declare that he and others who live in the 1% penthouse should pay more in taxes? Or when George Soros in an interview back in 2012 stated that Republicans were protecting the rich under the ‘Buffett Rule’ and he would be more than happy to pay his fair share of annual revenues? Well, it appears that both have lied and fooled the brain dead sheeple as on April 30, Soros was discovered to have used a loophole in the tax rules to that helped him defer taxable income to the tune of $13.3 billion, in which he owes nearly 40% of that to the Federal government by 2017.
George Soros likes to say the rich should pay more taxes. A substantial part of his wealth, though, comes from delaying them. While building a record as one of the world’s greatest investors, the 84-year-old billionaire used a loophole that allowed him to defer taxes on fees paid by clients and reinvest them in his fund, where they continued to grow tax-free. At the end of 2013, Soros—through Soros Fund Management—had amassed $13.3 billion through the use of deferrals, according to Irish regulatory filings by Soros.
Congress closed the loophole in 2008 and ordered hedge fund managers who used it to pay the accumulated taxes by 2017. A New York-based money manager such as Soros would be subject to a federal rate of 39.6 percent, combined state and city levies totaling 12 percent, and an additional 3.8 percent tax on investment income to pay for Obamacare, according to Andrew Needham, a tax partner at Cravath, Swaine & Moore. Applying those rates to Soros’s deferred income would create a tax bill of $6.7 billion. – Bloomberg
Perhaps the man who had the wherewithal to nearly bring down the British economy could cough up $59.99 to buy a copy of Turbotax like the former tax cheat Timmy Geithner did when he failed to pay his rightful taxes upon vying for the position of Secretary of the Treasury.
Yet Soros is not the only member of the elite to speak with a forked tongue about the rich paying their fair share of taxes. In August of last year, the Oracle of Omaha used a tax loophole known as an inversion to avoid paying taxes on a merger deal between Burger King and Tim Horton’s, and even the great U2 musician Bono moved the band’s charter away from their native country Ireland so they wouldn’t have to pay as much in taxes on their earnings and royalties.
The wealthy do not stay rich by giving away their money for no purpose or gain, and instead use the media to promote agendas that over time affect others like we have seen done to the Middle Class. And at the same time, these oligarchs buy off politicians to protect themselves from the very thing they are decrying as unfair to the public. Yet as evidenced in history regarding the original premise behind the Income Tax Amendment of 1913, which was voted upon with support from the general public under the guise of taxing the rich, over time, just like today, laws are changed to protect the elite while making the rules affect only the working Americans who are simply trying to make a living.
Like Obamacare… which Congress does not have to use pr pay towards… but you do!
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.