George Soros has come under fire for hiding $18 billion dollars from the IRS in what experts are calling “the biggest tax dodge in US history.”
Soros transferred $18 billion of his fortune to a private charity he controls in order to shelter it from the Internal Revenue Service.
Wsj.com reports: This may be the single biggest tax dodge in U.S. history, yet no one on the right or left seems to have raised an eyebrow.
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True tax reform is predicated on the principle that all income should be taxed at a low rate once, and only once. But much of the wealth that Mr. Soros spent years moving into his Open Society Foundations will never be taxed. A gift of billions of dollars of appreciated stock escapes any capital gains tax, and the estate tax as well. So Mr. Soros can donate appreciated stock that Open Society Foundations can liquidate without the government ever taking a cut.
There’s more. When a person donates untaxed, appreciated assets to a private foundation, he may also deduct up to 20% of its market value on his personal return, carrying forward this deduction for five years. This double write-off may be the sweetest deal in the tax code.
The donors also can retain control of the money within the private foundation for years or even decades before it is disbursed. Since the foundation can employ family members at six-figure salaries for life to “administer” it, the umbilical cord to the donor never has to be cut.
Congress should stop ignoring this tax-avoidance scheme. The super rich have already poured hundreds of billions into private foundations, but the figure could soon be in the trillions. Mark Zuckerberg has pledged to give away 99% of his Facebook shares, currently estimated to be worth somewhere around $70 billion, and much of it will go to a foundation his family controls. Bill Gates and Warren Buffett have each put roughly $30 billion tax-free into the Bill and Melinda Gates Foundation. This has left the foundation so flush that it spent $500 million on a 12-acre, 900,000-square-foot office complex in Seattle for its 1,500 employees. This is philanthropy?
I don’t question these billionaires’ right to do with their money as they wish. I’m simply arguing that Congress shouldn’t let the rich and politically powerful use private foundations to escape taxation. This loophole is one reason for an anomaly in our otherwise progressive tax code: The top 1% of earners pay an effective tax rate of 23%, but the top 0.001% pay only 18%.
Mr. Buffett has sanctimoniously denounced the fact that he pays a lower effective tax rate than his secretary. His suggestion is that Congress raise taxes on capital gains. But even if the tax rates were lifted, say, to 50%, Mr. Buffett still wouldn’t have to pay it on the tens of billions of dollars he puts into private foundations, and he would still be able to deduct a fifth of that contribution on future tax returns.
This tax favoritism might be defensible to promote genuine philanthropic activities.
Many billionaires, such as the Gateses and David Koch, have heroically donated to fight cancer and malaria or provide relief to hurricane and earthquake victims.
But others, including Mr. Soros and Michael Bloomberg, have turned private foundations into massive de facto lobbying operations for bigger government and liberal causes like higher minimum wages, gun control, universal health care, and a carbon tax. Mr. Soros’s $18 billion gift alone is the equivalent of maybe 100 Heritage Foundations. This kind of weaponized philanthropy has the potential to undermine the American free enterprise system.
Yes, billions go to groups on the right, too, from Mr. Koch and others. But regardless of ideology, why shouldn’t tax be collected before the money is given away? What message does it send that the Republican tax-reform bills retain this trillion-dollar loophole for the super rich, at the same time as the House plan eliminates the adoption credit for middle-class families who want to help children?
One simple solution would be for Congress to apply the capital-gains tax to assets of more than $1 million before they are transferred to a charity. This could even finance cutting the capital-gains rate to 15% for everyone.
Alternatively (or perhaps in addition) Congress could cap deductions for any given household to $250,000 a year. Under this kind of plan, Mr. Soros would be able to write off only a tiny fraction of his multi-billion dollar gift.
This isn’t an argument against charity. But selfless and effective giving is not motivated by tax breaks. Two-thirds of Americans don’t itemize their deductions, yet millions give until it hurts. In the 1980s, individual donations to charities surged, even as the top tax rate—and thus the maximum value of the write-off—fell from 70% to 28%.
The question is whether a tax code that encourages dynastic family foundations is good for America. If Congress stopped letting billionaires pour money tax free into the foundation-industrial complex, it would go a long way toward lowering rates and making the tax code fairer for everyone. This would help the economy grow faster, which is the best way to help those in need.
Sean Adl-Tabatabai
Metatron MMJ protego
Metatron AAJ protego
Metatron AMJ protego
“Many billionaires, such as the Gateses and David Koch, have heroically donated to fight cancer and malaria or provide relief to hurricane and earthquake victims.” Have they now? What’s the bet that most of those things they donated to also have associated scandals – just different scandals.
It is thought by some that George Soros primary position is head of the Revolutionary Council of the Ordo Templi Orientis. This is not to say that he is or isn’t the Frater Superior, probably not, but simply a member of the Grand Council of the OTO. However, his primary position as head of the Revolutionary Council is as stated in its name; foster and support revolutions. It really is that simple. Want to stop Soros? You must stop and dismantle all of the OTO.
A good guess. But it would be helpful if you had some facts.
…and what percent of the money actually goes for these “relief” efforts as opposed to salaries, management benefits, etc.? Just an after thought; why is no one helping the folks in Appalachia (West Va et. al.)? Trump is the only one helping them. He’s resurrected the mining industry.
Dan that’d be among the sort of scandals I mean. If Trump is helping them, well that’s great. I’m not against people being helped. Trump so far keeps doing things that bring hope. I’m Just not for the BS that promotes the gateses of the world, that have literally been out there openly advocating for radical depopulation.
Yep. The ultimate irony is the colleges are teaching the kids to NOT reproduce while our fiscal policies encourage reproduction among the non-working. Which group do you think would be more likely to raise a new generation of producers? A big damn DUH for the Democrats.
laughing all day long… these people donates the cents and steal billions, donates to find cure for cancer? you mean, donates his money to cure cancer? or you mean donates for his own companies, who will charge severe money to buy medicine against cancer/??
the IRS should confiscate all his accounts to pay the debt that he owes & extra fines and then drop this piece of shit into an endless pit where he should rot
You’re being a bit kind there, Monica.
Metatron praetor terram
Metatron nisi homines
Metatron firmitatem constanti
Metatron pacem in terris
And this has what to do with Soros? Nothing? You just wanted to flaunt your superfluous competence in Latin?
S0R0S is a free agent working for evil him self
Trump is still being investigated for trumped-up charges while the real professional criminals and traitors continue to walk free and enjoy their ill-gotten wealth without any legal obstructions.
nobody will do anything to him because both sides get money from him.
He belongs to the Hypocrisy Party, formerly the Democrat Party. He can do what he says not to do.
Old Soros thinks he’s having hell now? Wait until he gets there!
Help beat a Soros, Schumer, Pelosi mouthpiece. Go to roymoore.org now and donate!
Sex offenders don’t ‘trump’ money scammers or tax avoiders or evaders.
The Clinton Slush Fund foundation concept is being adopted by billionaires nation wide. Perhaps it’s time to stop this.
Big surprise, eh?
What do want to bet nothing “IS” done about it?
WHAT LAW HAS BEEN BROKEN? YOU GUYS STIR THE SHIT POT ALWAYS. NEVER ANYTHING BUT SMOKE AND BULLSHIT!
Fire up the de-lousing chambers and the ovens!
I find it interesting that all of these rich folks cite their low taxes (especially Buffet), thus appearing “concerned”, while continuing to use the loopholes. Our vaunted liberal politicians claim the same (Feinstein). They are all trying to appear “concerned” about the “downtrodden” while wanting to control the government. Their “concern” rings hollow. If they are really “concerned”, they should contribute their earnings to the government under “Charitable Contributions”. The middle class (us working stiffs), as always, shoulder the burden to support the “downtrodden”. If they are really “concerned”, hey should put their money where their mouth is.
I find it interesting that all of these rich folks cite their low taxes
(especially Buffet), thus appearing “concerned”, while continuing to use
the loopholes. Our vaunted liberal politicians claim the same
(Feinstein). They are all trying to appear “concerned” about the
“downtrodden” while wanting to control the government. Their “concern”
rings hollow. If they are really “concerned”, they should contribute
their earnings to the government under “Charitable Contributions”. The
middle class (us working stiffs), as always, shoulder the burden to
support the “downtrodden”. If they are really “concerned”, they should
put their money where their mouth is
He’s an evil disgusting example of humanity. Unfortunately, with his billions & our tax code, chopping the head off the snake will not prevent his legacy from living on long past his demise.
Same fate as Al Capone
ALL foundations are tax dodges or money laundering operations.
Applying the capital gains tax to assets of more than $1 million dollars, BEFORE transfer of assets is excellent. There are so many fraudulent scam ‘no-money exchanged-deals’ now. The scammers use ‘pretend assets’ from government confiscated or ‘bundled mortgage’ listings of private housing & business buildings, present themselves as presumed multi-millionaires/billionaires, & use these properties to make false ‘leveraged buyouts’ of truly owned private property, forcing real home & business owners out of their own properties. This big banker trickster accounting has ‘trickled down’ to no-money-in-their-wallets-or-accounts scammers, including welfare recipients & new legal/illegal immigrants.
INTERESTING THESE MAIN DONORS FOR THE DEMOCRATIC CONGRESS MEMBERS ARE SO WEALTHY – ENJOYING TAX CUTS, WHILE THEIR PUPPET-ON-STRINGS (THEIR DEMOCRATIC POLITICIANS) WON’T SUPPORT A FAIR TAX CUT FOR ALL AMERICAN CITIZENS TO BENEFIT FROM!
Throw him in prison.
MONEY LAUNDERING!!!! And all the money in the world won’t buy him more TIME……..”to every season”, …….. “a time to be born, a time to die”, etc………..the most EVIL MAN ALIVE TODAY.
Well I won’t be my till something is done with this. After all most of the leadership of the IRS, AND FBI are Democrats. He’s very well protected.
he wont go to jail.