Billionaires Duck Buffett 17% Tax Target Avoiding Reporting Cash to IRS

[LeighAnn]

Source: Bloomberg

When billionaire Billy Joe "Red" McCombs, co-founder of Clear Channel Communications Inc., reported a $9.8 million loss on his tax return, he failed to include about $259 million from a lucrative stock transaction.

After an audit, the Internal Revenue Service ordered him to pay $44.7 million in back taxes. McCombs, who is worth an estimated $1.4 billion and is a former owner of the Minnesota Vikings, Denver Nuggets and San Antonio Spurs sports franchises, sued the IRS, settling the case in March for about half the disputed amount.

McCombs's fight with the IRS illustrates an overlooked facet in the debate over tax rates paid by the nation's wealthiest. Billionaires -- from McCombs to Philip Anschutz to Ronald S. Lauder -- who derive the bulk of their wealth from stock appreciation are using strategies that reap hundreds of millions of dollars from those valuable shares in ways the IRS often doesn’t classify as taxable income, securities filings and tax court records show.

"The 800-pound gorilla is unrealized appreciation," said Edward J. McCaffery, a professor of law, economics and political science at the University of Southern California in Los Angeles.

Read more: http://www.bloomberg.com/news/2011-11-21/billionaires-duck-buffett-17-tax-target-avoiding-reporting-cash-to-irs.html#

[Divine Discontent]

1. Clear Fucking Channel!

Big shock... not.



Get it now, or one of a million other designs! http://www.zazzle.com/republicans_2012_keeping_millions_out_of_work_bumper_sticker-128659602907896843?rf=238107662556833486

[RUMMYisFROSTED]

2. $22.35M?

:rofl:

[progressoid]

3. Commit the crime - pay half the fine.

Hell of a deal.

[Corruption Winz]

4. Brilliant..

So, he essentially makes $259,000,000 and feels that all he can sacrifice is around 9%?

Perfect sense. That's the same sacrifice that the average American makes. Wonderful.

[xchrom]

5. Recommend

[JJW]

6. If he can forget a $ 259 million profit, than he should...

just hand it all over to the IRS or charity. He obviously doesn't need it.

[midnight]

9. Awsome way to address such greed....

[russspeakeasy]

7. Here in lies the lesson for our children...when you steal, steal BIG !

[OnyxCollie]

8. He simply misread the form, like Clarence Thomas did.

Those guys should get TurboTax.

[aggiesal]

10. Why are we getting mad at McCombs? ...

I don't like what's he done, I find it morally bankrupt.

But we should be getting mad at the politicians that voted
to approve, and at the IRS for allowing it to happen.

We are on the precipice of another election where we are getting
one complete party (GOP-Greedy One Percent) screaming 9-9-9,
No taxes at all for the wealthiest . . .

We need to expose these people for who and what they are
the Greedy One Percent.

The Occupy movement is doing a great job exposing this, along
with articles like this one.

Next we have to vote them down, in a big way, and force the
remaining politicians to start paying a little more attention
to US!!!