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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPrivate Jet as Security Write-Off? 10 Most Insane Tax Loopholes
http://www.alternet.org/economy/private-jet-security-write-10-most-insane-tax-loopholes***SNIP
1. CEO private security. A common corporate tax trick, according to the New York Times, is corporate boards paying for private jets and other perks for their CEOs under the guise of security. As Steven Davidoff reported, typically CEOs would have to pay taxes on these benefits, but if the benefit is classified as necessary for security purposes, the chief executive will pay a reduced tax bill or sometimes no tax at all.
2. Florida cow scam. In Florida, wealthy developers, lawmakers and even some corporations game the tax code by placing cows on their land for a limited amount of time each year, thereby qualifying for agricultural tax breaks. Sen. Ben Nelson (D-FL) has benefited from this absurd loophole for years, as has Disney World. But Florida isnt the only offender. From rock stars in New Jersey to movie stars in Colorado, tax breaks meant for farmers get gamed by the most privileged, using everything from sheep to beehives.
3. Facebook stock options. The social media giant Facebook made more than $1 billion in profits last year, but paid no corporate tax thanks to a huge write-off after its initial public offering. In fact, the company received a refund of $451 million. As Citizens for Tax Justice, explained, Facebooks income tax refunds stem from the companys use of a single tax break, the tax deductibility of executive stock options. This loophole will also allow Facebook to avoid more than $2 billion in taxes in future years. LinkedIn used the same gimmick to pay no federal taxes for the last three years.
4.Bluegrass boondoggle. This tax break, created by Senate Minority Leader Mitch McConnell (R-Kentucky) in 2008, gives wealthy horse owners a break worth $126 million over 10 years by allowing faster depreciation (quicker tax write-offs) of race horses. McConnell has defended the break by claiming it helps Kentuckys farm economy.
Arkansas Granny
(31,484 posts)loopholes, but some are just astounding. Maybe closing those loopholes wouldn't solve all of our problems, but what if everyone had been paying their fair share all along?
ProfessionalLeftist
(4,982 posts)Singletrack rider
(1 post)The racehorse depreciation should have been done 30 years ago. The fact is a race horse placed in service at any age won't have a racing career of 7 years. So why depreciate it over 7 years. 3 years is more in line with the life of the asset.
That said, I am no fan of the Turtle.
I have been in the thoroughbred industry for 30ish years. It's reputation as a sport of kings is misguided. Most folks in the business are small timers, working hard grooming and training their own horses trying to eek out a living.
annabanana
(52,791 posts)In_The_Wind
(72,300 posts)[img][/img]
In The Wind
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Stinky The Clown
(67,697 posts)Just sayin'
loudsue
(14,087 posts)The wealthy will fight for every dime of tax breaks to bring this country to its knees.
otohara
(24,135 posts)bought 200 acres of land in Parker. First he was going to use the "wood producing" loophole which only requires you sell a whopping $200 worth of wood ..but this loophole wasn't lucrative enough for my millionaire governor. Instead, he went for the fake farmer loophole and was paying only $400 in property taxes. We pay $1400 on our 1100 square home.
This loophole was closed last year. It took 9 years to close the loophole.
mountain grammy
(26,573 posts)The second biggest, tax exempt donations to religious organizations that fund political agendas. Way to exempt campaign donations from taxes, Rmoney!
walkerbait41
(302 posts)indepat
(20,899 posts)($20 million?) and hedge fund manager Paulson ($5 billion) to pay a 15% capital gains rate on earned income which was not capital gains. I'll be really pist if benefits to social security and/or Medicare beneficiaries are reduced to, in part, pay for continuing this loathsomely vulgar largess to some of the outrageously privileged of the wealthy class. Really pist.
otohara
(24,135 posts)it took 9 years to close it.
I was paying more property taxes on my tiny house than Tom Cruise was paying on his $30 million dollar ranch in Telluride.
judesedit
(4,437 posts)And cororations are people only when it comes to super PACS. When it comes to paying taxes or being prosecuted....what are they then????? This whole thing is bullshit. 2% of the population own at least 50% of the wealth. The average worker has to work a month for what a CEO now earns in an hour. Wake the hell up, people.