Archive for offshore tax havens

Hedge Fund Billionaires Lower Taxes by Sending Cash on a Bermuda Vacation

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chart vulture income disparity inequality smaller

Your Daily Dose of BuzzFlash at Truthout, via my pal Mark Karlin:

Bloomberg Businessweek (ironically owned by politician plutocrat and defender of the oligarchy Michael Bloomberg) just reported that "a hedge fund tax dodge uses Bermuda reinsurers" ... But the Bermuda based "reinsurers" are sometimes just little more than mail drops that serve as a vehicle for tax-evasion money laundering, with little concern being expressed by the IRS. [...]

Referring to three gluttonously wealthy hedge fund managers, Bloomberg Businessweek reveals:

The companies set up by Paulson, Cohen, and Loeb are all located within a half-mile of each other in the narrow streets of Hamilton, Bermuda’s capital and the global center of the reinsurance industry. The three put a combined $1.7 billion back into the fund managers’ hands last year.

Even the Murdoch-owned tabloid The New York Post jumped on the legalized theft from the public purse of this scheme...

Billionaire hedge-fund moguls are getting comfortable with a US tax loophole to fatten their already plump bottom lines. [...]

Hedgies like John Paulson and Steve Cohen are forming reinsurance companies in tax-free havens like Bermuda or the Cayman Islands — and then transferring cash from their funds to the reinsurance companies.

The cash, classified as insurance company reserves, is then transferred back into the funds as reserves to be invested for future claims.

Thanks to an IRS loophole, profits from these insurance companies aren’t taxed — until the stake in the fund is sold, and that could be years down the line.

And here’s the kicker: The taxes, when paid, are at the lower capital-gains rate and not as ordinary income. [...]

The more the rich get richer, the more they get a free pass from legal oversight.

Please read the entire post here.

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Another day, another GOP hypocrite

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pro life hypocrisy Via Sodahead

In today's L.A. Times, there was an article about the Senate approving $50.5 billion in Superstorm Sandy aid. Wow, Senate, that only took... months.

But aside from the obvious outrage-worthy content in the piece, there was one quote that caught my eye:

A number of Republicans unsuccessfully sought to offset the aid with cuts to other federal spending.

"We have a habit here of throwing money at things under an emergency category and then later finding out, one, it wasn’t an emergency where the money went, and number two, it was misspent and not effective,’’ said Sen. Dan Coats (R-Ind.).

Via Wiki:

From August 15, 2001 to February 28, 2005, Coats was the United States Ambassador to Germany.[11][12] As ambassador during the lead up to the Iraq war, he pressured the German government not to oppose the war, threatening worsened US relations with Germany.[13]  [...]

In 2007, Coats served as co-chairman of a team of lobbyists for Cooper Industries, a Texas corporation that moved its principal place of business to Bermuda, where it would not be liable for U.S. taxes. He successfully blocked Senate legislation that would have prevented a tax loophole, worth hundreds of millions of dollars to Cooper Industries.[16]  [...]

Coats is affiliated with the Fellowship, an informal association of Christian lawmakers.[25]

So he supported invading and destroying Iraq, a war that was kept off the books, a war that wasn't paid for or "offset," a war that was put on a credit card and threw "money at things" and then we "later found out, one, it wasn’t an emergency where the money went, and number two, it was misspent and not effective."

And he supported those infamous Romney-style offshore tax havens that have cost our economy a pretty penny.

And he claims to be oh so Christian, yet voted against helping fellow Americans whose lives were devastated by a natural disaster. Pro-life my ass.

Hypocrisy, thy name is Coats.

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VIDEO-- Romnopoly: To Mitt Romney, "your job and our economy are just a game."

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"Your job and our economy are just a game."

This is a memorable, creative recap of Willard M. Romney's economic priorities, from gutting education to "let Detroit go bankrupt" to his bankrupting-companies days at Bain to cutting retirement programs to pay for tax breaks for the very rich.

Check out the dog-on-the-car-roof game piece. Gold.

(Democratic super PAC ):

From opposing the auto recovery plan and laying off workers during his time at Bain to gutting education to pay for tax cuts to the rich, the ad runs through the many reasons that if Mitt Romney wins, the middle class will lose.

Learn more, please visit Romnopoly.org

Supporting Facts for "Romnopoly":

Romney Wanted To "Let Detroit Go Bankrupt" And Said The Demise Of The Auto Industry Would Be "Virtually Guaranteed" By A Government Bailout. According to Romney, "If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won't go overnight, but its demise will be virtually guaranteed. Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check." [Romney Op-Ed, New York Times, 11/19/08]

Bain Owned GS Industries Filed For Bankruptcy And 750 People Lost Their Jobs. "Bain acquired GS Industries in 1993. The steelmaker borrowed heavily to modernize plants in Kansas City and North Carolina, as well as pay dividends to Bain investors. But as foreign competition increased and steel prices fell in the late 1990s, the company struggled to support the debt, according to Mark Essig, the former CEO. GS filed for bankruptcy in 2001, and shut down its money-losing Kansas City plant, throwing some 750 employees out of work." [Boston Globe, 1/27/08]

Workers at the paper plant in Marion were fired hours after Bain Capital purchased the plant. According to the Boston Herald, "Hours after Bain-owned Ampad Corp. bought the plant July 5 from Smith Corona Corp., the plant's 250 union workers were fired and told they could re-apply for their old jobs. Ampad scuttled Smith Corona's contract with the United Paperworkers International, seeking to make wage and labor conditions similar to its three other non-union plants. Drug tests were also required." [Boston Herlad, 9/23/94]

Tax Policy Center: Romney Tax Plan Would Raise Taxes On Families With Children With Income Below $200,000 By $2,041. According to a Tax Policy Center analysis of Romney's tax plan and promises, families with children that earn below $200,000 a year would see tax increases of $2,041. [Tax Policy Center, 8/1/12]

Tax Policy Center: Top 0.1% Would See $246,652 Tax Cut Per Year Under Romney Plan. According to a Tax Policy Center analysis of Romney's tax plan and promises, the top 0.1% would receive a tax cut of $246,652 per year. [Tax Policy Center, 8/1/12]

Romney Held Investments In Off-Shore Tax Havens And An Unusually Large IRA In Places Like Switzerland, Bermuda and The Cayman Islands. According to Bloomberg, "Romney's extensive investments in tax havens are drawing intensifying media scrutiny at the same time that revenue- starved governments around the world are cracking down on such practices. In recent weeks, Romney has faced increasing pressure to release additional years of tax returns because of questions over his 13.9 percent personal tax rate, his Swiss bank account, an IRA valued at as much as $102 million and his investments in Bermuda and the Cayman Islands." [Bloomberg, 08/06/12]

Romney Said He Would Not "Promise" Government Money To Help Students Pay For College But Suggested They Shop Around For Schools. According to New York Times, "The high school senior who stood up at Mitt Romney's town hall meeting here today was worried about how he and his family would pay for college, and wanted to hear what the candidate would do about rising college costs if elected...The answer: nothing. But his warning was clear: shop around and get a good price, because you're on your own. 'It would be popular for me to stand up and say I'm going to give you government money to pay for your college, but I'm not going to promise that,' he said, to sustained applause from the crowd at a high-tech metals assembly factory here. 'Don't just go to one that has the highest price. Go to one that has a little lower price where you can get a good education. And hopefully you'll find that. And don't expect the government to forgive the debt that you take on.' There wasn't a word about the variety of government loan programs, which have made it possible for millions of students to get college degrees. There wasn't a word urging colleges to hold down tuition increases, as President Obama has been doing, or a suggestion that the student consider a work-study program." [New York Times, 3/5/12]

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MoveOn: "Strong possibility of Romney criminal liability" in personal financial disclosure filings

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New Legal Analysis Finds Strong Possibility of Romney Criminal Liability for Misrepresentation He Made in F...

Earlier, I posted Finally! Accountant explains Romney’s offshore accounts, blind trust, taxes, and more… in layman’s terms.

How about in legal terms? Via MoveOn:

CONCLUSION

The facts known about Gov. Romney’s role in Bain Capital entities after 1999 strongly suggest that Gov. Romney made a false statement in violation of the False Statements Act in categorically asserting, in 2011, on his Financial Disclosure Form, that since February 1999, he had not been involved in the operations of any Bain Capital entity in any way. At a minimum,the facts call out for a full investigation by the U.S. Department of Justice.

Works for me.

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