How the Wealthy Write Off Taxes

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Whenever I see someone famous on TV talking about the need for higher taxes or claiming they enjoy paying taxes I always say, “Their accountant is laughing”.
Senator Tom Coburn issued a report showing exactly what I mean.

The tax code is so peppered with special giveaways that companies such as Facebook end up getting refunds, and high-profile athletes and artists use their tax-free foundations to give friends jobs while avoiding taxes — all leading to higher income tax rates for the rest of us, Sen. Tom Coburn charges in a new report being released Tuesday.

Here is a snapshot of what was found by his staff:

-Baseball owners are able to claim their players “depreciate” over time, the same way farms are able to claim their tractors depreciate
– Athletes and Hollywood stars who form tax-exempt organizations that they then use as tax shelters, throwing parties or paying employees’ salaries from the tax-exempt accounts while dedicating almost no money to charitable works.
-Kanye West’s foundation spent more than $1 million in 2009 and 2010 but “gave virtually nothing” to charity. Fellow performer Lady Gaga’s Born This Way Foundation raised $2.6 million but only gave away $5,000 in grants

You can read more via Washington Times

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