Tax Evasion

TAX EVASION

At the debate the other night Hillary launched her "October surprise" on Trump, suggesting that he refuses to show us his birth certificate oops I mean tax returns because he doesn't pay any taxes.

Then a copy of Trump's tax return for 1995 is mysteriously "leaked."    It showed that he claimed a nearly billion dollar loss and subsequently paid no taxes.    Trump says, "That makes me smart." Accountants say this is legal, since tax rules that favor wealthy filers would have allowed writing-off up to $50 million in taxable income per year for up to 18 years.

By stark contrast, a middle-income earner reporting a $30,000 loss would only be allowed to take a maximum of $3,000 as a write-off for that tax year.  And the carry forward loss is capped at $3k per year, even if there are further losses.

I am reminded of Leona Helmsley the hotel heiress who famously remarked "We don't pay taxes. Only the little people pay taxes." (She went to jail for tax evasion, sentenced to 16 years, but was able to buy her freedom after only 19 months.)

Mark Cuban thinks the"loss" was probably a quasi-legal tax shelter.  I think it was tax evasion.

BP: Cares about small people

Well, today a lot of people seem to have their panties in a bunch because of a stray comment by BP chairman Carl-Henric Svanberg, who is Swedish.  He  told reporters. "I hear comments sometimes that large oil companies are greedy companies or don't care. But that is not the case with BP. We care about the small people."

Clearly, the guy was not intending to insult or demean the good citizens of Louisiana, nor was he showing a preference for midgets and dwarfs.  He was trying to show some humanity in the face of anger and disappointment.  The translation did not go so well, but a fair-minded person might have expected the faux pas to pass with barely a twitter.  Maybe a mention on the Leno show.

But it evoked memories of  the lordly attitude of  Leona Helmsley who famously said, "We don't pay taxes. Only the little people pay taxes...,"  She was sent to prison for tax evasion shortly thereafter.

But I think this "small people" remark is a case of "lost in translation" more than an imperial attitude.  Now the media is spilling more oil on the fire by focusing on the outrage of a few nitwits and attention whores.   Now the guy has to apologize again.  Besides setting aside $20 billion to cover the costs of the damages to people and property in the area.

The hyenas are rushing to the kill, but we should keep in mind that if BP is driven into bankruptcy all the people with claims will just have to get in line and divide-up a much smaller pie. It will be heaven for lawyers regardless of their stature.

I am sick of this story, aren't there some wars going on somewhere?