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| Subject: Re: Oro, THis kind of blows your theory about how the wealthy are paying more than their share of taxes | |
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Author: Oropan |
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Date Posted: 05:20:39 05/31/07 Thu In reply to: Bev 's message, "Oro, THis kind of blows your theory about how the wealthy are paying more than their share of taxes" on 15:25:03 05/30/07 Wed This is what happens when taxes are too high....people look for all ways to avoid them. I find it interesting that what they did was lower their tax rate down to about the same level that average people pay and still a rate 20% higher than a family of four with a little more than $40.000 a year in income. The highest 10% of the taxpayers now pay 90% of all income taxes. I know that many Dums would like them to pay 100% of all taxes and the rest of the people could live free. I find that to be morally wrong and I figure if you live and work in this Country you should be willing to pay some of your income to make it work. We are now at a point where 40% of workers pay zero income tax. That is wrong. With anywhere from 12 to 50 million NEW low income people about to become new citizens, we are about to turn the US into a huge third world country and there will be crys from the left to raise tax rates to the 90's percent. Many of the rich people that you lefties hate will just leave the Country. Lots of other middle income taxpayers will just move their income 'underground' to avoid taxes. The old statement that every action has an equal and opposite reaction is never more true than when that is applied to rising taxes. >I have always maintained they are not paying their >share as they can hire people to find ways to avoid >paying taxes . > >this is the first page of a two page article > >href="http://abcnews.go.com/Business/IndustryInfo/story >?id=3226432&page=1">http://abcnews.go.com/Business/Indu >stryInfo/story?id=3226432&page=1 > >How the Super Rich Avoided Taxes; Despite Making >Millions >Accounting Firm Ernst & Young Allegedly Concocted Tax >Schemes to Shelter Millions By SCOTT MAYEROWITZ >ABC NEWS Business Unit >May 30, 2007 >Font Size > > Print Four current and former partners at Ernst & >Young, one of the world's largest accounting firms, >were indicted Wednesday for allegedly orchestrating a >scheme to create illegal tax shelters for the firm's >richest clients. > >The scam catered to clients who earned more than $10 >million to $20 million a year, finding them ways to >reduce their taxes, according to an indictment handed >up in the federal court for New York's Southern >District. > >Editor's Picks >'An Easy Way to Make Money Quickly'They May Be Rich >and Famous, but Do They Pay Their Taxes?Tax Scofflaws >Still Get Medicare FundsThe Tax Man Is Getting >ToughChina Stocks PlungeErnst & Young took in more >than $115.7 million in fees for setting up these >shelters, charging clients between 1.25 percent and 2 >percent for every dollar of tax deductions created, >according to the indictment. The firm assisted more >than 400 wealthy clients in reducing their taxes >through such shelters. > >According to ABC News' calculations, that could mean >that Ernst & Young helped its clients create more than >$7.56 billion in tax deductions. > >One of these complicated tax shelters involved >converting clients' ordinary income into capital >gains. > >The idea behind the alleged scheme is that the tax >rate on capital gains is significantly lower than the >regular income tax rate, especially for the rich. > >The rich clients in question would normally be taxed >at a rate of about 40 percent, according to court >records. But the income allegedly filtered through the >tax shelters and was taxed only at the long-term >capital gains rate of about 20 percent. > >Ernst & Young was not charged with any wrongdoing. In >a statement, the firm said it has cooperated with the >government from the beginning of its investigation and >that none of the defendants were part of the firm's >management. > >"The individuals who were indicted are two former >partners and two partners who have been on >administrative leave," the company statement said. >"They were part of a small group within the firm, >disbanded years ago, that was responsible for >developing the transactions in question." > > >A Shelter for Their Own Taxes >The government alleges the scheme was so good that its >architects couldn't deny themselves a chance to reap >the profits. > >Three of the partners involved in the shelters >allegedly decided to use the program to evade their >own taxes and arranged for eight other partners in the >firm to join in the shelters with them. > >Those 11 Ernst & Young partners avoided paying about >$3.7 million in taxes they owed, according to the >indictment. > >But the case doesn't end there. > >this is the first of a two page article > > > >Allegedly, several law firms and other companies >co-conspired with Ernst & Young to carry out the tax >shelters. > >Several steps were taken to hide the true nature of >these shelters from the Internal Revenue Service, >according to the indictment. > >How the Super Rich Avoided Taxes; Despite Making >Millions >12Next >Read All 39 Comments and Post Your Own [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| Re: The weatlhy and taxes | Bev | 10:27:50 05/31/07 Thu |
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