Post by jgaffney on Aug 4, 2011 19:27:51 GMT -5
In case you missed it, here's the scam that Bill Clinton, ,and many other rich taxpayers, get away with every year. this doesn't work unless you have an income with two commas in it.
Bill Clinton did not invent this scam, but many millionaires, like Bill Gates, also take advantage of it.
The tax law that set up this scam was enacted by Congress, and can be changed at any time by Congress. So, what's holding them back, other than a desire to hear Obama continue to say "millionaires and billionaires."
- Say you have an income north of one mil and you want to reduce your tax burden to as low as possible.
- Set up a charitable foundation and name yourself (and your spouse) as the sole executive(s).
- Make a huge charitable donation each year into the foundation, on the order of two thirds of your income.
- You get to take a deduction on the taxes due on the remaining income, based on the size of your charitable donation. You pay taxes on the rest.
- Federal tax laws stipulate that you have to give away a portion of the foundation's assets every year, but it's less than 15%, I think. You find some worthy cause, give them a big check, and you get your name in the paper and a free seat at their dinner party.
- As the executive(s) of the foundation, you can pay yourself a salary, plus bury a lot of your living and travel expenses in the expenses of the trust. You're basically spending your own money tax-free.
Bill Clinton did not invent this scam, but many millionaires, like Bill Gates, also take advantage of it.
The tax law that set up this scam was enacted by Congress, and can be changed at any time by Congress. So, what's holding them back, other than a desire to hear Obama continue to say "millionaires and billionaires."