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Paulson Parting For Puerto Rico To Prevent Tax Payments?

Tyler Durden's picture




 

Departing a socialist regime to avoid paying taxes is not just a French thing anymore: Bloomberg reports that one of the most famous hedge fund managers of the late 2000s, if not so much recently, John "Boricua" Paulson "is exploring a move to Puerto Rico, where a new law would eliminate taxes on gains from the $9.5 billion he has invested in his own hedge funds, according to four people who have spoken to him about a possible relocation." In moving to Puerto Rico, Paulson would merely be the latest person to avoid paying any taxes associated with Paulson & Company: virtually every other investor in Paulson's hedge funds also has no taxes to worry about, for a far simpler reason: taxes are generally incurred on profits, not three years in a row of relentless losses.

All of this, of course, was to be expected when Paolo Pellegrini, or the brain behind the only truly profitable strategy the former Bear salesman's fund had, departed long ago. As for Paulson's resting on his laurels: he has so far succeeded admirably in doing so for over 5 years, much to the chagrin of what little LPs he has left. Once he hits 6 years, the Phil Falcone 6 year itch hits, and stuff gets from bad to worse. Watch out for Paulson floating impractical ideas about developing satellite companies... or not. Which is perhaps why Paulson is now actively looking to lock in what profits he may have with his fund, but far from America's 50% marginal tax rate.

From BBG:

Ten wealthy Americans have already taken advantage of the year-old Puerto Rican law that lets new residents pay no local or U.S. federal taxes on capital gains, according to Alberto Baco Bague, Secretary of Economic Development and Commerce of Puerto Rico. The marginal tax rate for affluent New Yorkers can exceed 50 percent.

 

The Puerto Rican tax law provides a boon for someone like Paulson, who earns most of his money from investments. The federal rate for top earners in the U.S. is 23.8 percent on long-term capital gains and dividends and 39.6 percent on ordinary income, which includes short-term gains and interest. State and local taxes can push the marginal rate for rich New Yorkers higher.

 

Paulson, 57, recently looked at real estate in the exclusive Condado neighborhood of San Juan, where an 8,379- square-foot penthouse, complete with six underground parking spaces, lists for $5 million. The area is home to St. John’s School, a private English-language academy where he and his wife could send their two children, said the people, who asked not to be named because the discussions were private.

 

“While we have looked at real estate investments in Puerto Rico, we have not made any investments,” Paulson & Co., which oversees $18 billion, said in a statement. The firm is one of the largest holders of Popular Inc., which owns the biggest lender in Puerto Rico, and it runs a $300 million real estate fund that has properties in Florida, Nevada, Arizona, California, Colorado and Hawaii.

Perhaps because what money was available in the petty cash drawer was being used to pay margin on those collapsing gold miner positions?

The Puerto Rico move is not to be confused with other perfectly legal tax-evasion strategies put in place by Paulson and others:

Paulson executives, too, have already taken steps that may allow them to pay lower taxes. Last year, they put about $450 million into a new Bermuda reinsurance company that in turn invested all of its assets in Paulson & Co. funds. The structure positions them to defer any taxes on investment income from the funds for years, and to pay only the lower capital gains rate when they do.

Will other rich and not so patriotic US millionaires jump on the Puerto Rico wagon? Most certainly:

Residents of Puerto Rico, an unincorporated territory of the U.S., typically pay a local tax rate of as much as 33 percent, according to Gabriel. They don’t pay U.S. taxes on income from Puerto Rico, but are taxed on dividends and interest from U.S. companies. They are not subject to capital gains taxes in the U.S. and pay a 10 percent capital gains tax locally, from which new residents are exempt.

 

The preferential treatment for the new residents aims to promote investments in real estate, boost services and consumption, and encourage foreign service providers to move their businesses to the country, said Puerto Rico’s Baco Bague.

 

In addition to the 10 wealthy individuals who have already relocated to Puerto Rico to take advantage of the new laws, 40 more are currently talking to the government about moving and have brought their families to look at housing and schools, said Baco Bague. About 35 percent are hedge-fund managers, he added.

Cue an Obama executive order making it illegal for anyone with a net worth of over $1 billion to move to Puerto Rico.

 

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Mon, 03/11/2013 - 10:26 | 3319133 francis_sawyer
francis_sawyer's picture

Alotta Alliteration for Hungry Hedgers seeking Juicy Journalism with Tittilating Titles

Mon, 03/11/2013 - 10:27 | 3319146 prains
prains's picture

Didn't Ronnie Raygun try the same thing in Grenada...err wait a minute

Mon, 03/11/2013 - 10:28 | 3319151 francis_sawyer
francis_sawyer's picture

A 'Pledge Pin'?... On your uniform?

Mon, 03/11/2013 - 10:35 | 3319181 Zer0head
Mon, 03/11/2013 - 11:57 | 3319382 Paul Bogdanich
Paul Bogdanich's picture

Personally I am all for this wave of reverse emigration.  So long as it is accompanied by a very restrictive visa policy for those concerned.  If they want to actually spend 300 days a year in Puerto Rico or wherever else will have them let them do it.  However to change ones domicile to Puerto Rico and still functionally operate out of New York should be verboten. 

Mon, 03/11/2013 - 12:14 | 3319427 FeralSerf
FeralSerf's picture

Do you think New Hampshire residents should have a "very restrictive visa policy" to visit New York too?

Are you aware that Puerto Rico is not a separate country  and its citizens are just as eligible for U.S. passports as the New Yorkers are?

Mon, 03/11/2013 - 12:24 | 3319451 DOT
DOT's picture

US passport = The IRS will take from you what the master sez.

Mon, 03/11/2013 - 13:03 | 3319555 kaiserhoff
kaiserhoff's picture

Great idea.  Puerto Rico must be empty.  The whole population seems to have moved to Florida or New York for the welfare.

Mon, 03/11/2013 - 13:15 | 3319588 FeralSerf
FeralSerf's picture

Some of those people of which you speak may be Cubans or even Dominicans (from the Dominican Republic).

Mon, 03/11/2013 - 12:29 | 3319468 DOT
DOT's picture

US passport = The IRS will take from you what the master sez.

Mon, 03/11/2013 - 13:07 | 3319568 Paul Bogdanich
Paul Bogdanich's picture

Puerto Rico is an imperial territory like Guam.  Massachussets is a state as is plainly evidenced by the differing tax treatments.  So thank's for the sophistry but there will come a time to deny the guy's passport application make him apply for visas and then controll his access.  Now of course the current set of corporatist politicians won't do that just like they won't use armed drones in the US.  That said the legal framework they are creating will persist long after they are gone and with a good bit of public anger at say, another banking crisis, all manner of things become possible.  Probable even.     

Mon, 03/11/2013 - 11:57 | 3319383 Paul Bogdanich
Paul Bogdanich's picture

Personally I am all for this wave of reverse emigration.  So long as it is accompanied by a very restrictive visa policy for those concerned.  If they want to actually spend 300 days a year in Puerto Rico or wherever else will have them let them do it.  However to change ones domicile to Puerto Rico and still functionally operate out of New York should be verboten. 

Mon, 03/11/2013 - 10:52 | 3319216 Groundhog Day
Groundhog Day's picture

Borequa Posse Bitchez

Mon, 03/11/2013 - 10:25 | 3319138 Sudden Debt
Sudden Debt's picture

It's where the HOT chicks are...

Mon, 03/11/2013 - 10:29 | 3319156 otto skorzeny
otto skorzeny's picture

if you're stevie wonder

Mon, 03/11/2013 - 10:36 | 3319164 CaptainSpaulding
CaptainSpaulding's picture

The man made Innervisions. Yes Virgina, He is a god

Steviewonder_innervisions.jpg

Mon, 03/11/2013 - 12:43 | 3319502 ParkAveFlasher
ParkAveFlasher's picture

1) The hot ones are underage and they are underdressed because

2) They come from broke-ass families where it's acceptable to gold-dig because

3) They are all on some type of welfare, just like Hank Paulson.

Mon, 03/11/2013 - 10:31 | 3319162 Stoploss
Stoploss's picture

God Dammit!!  We can't all go to Puerto Rico because it might tip over and we will all drown!!

You can only put so many people on an island before it tumps over!!

I mean, Jesus, the congress even knows that!!

 

Mon, 03/11/2013 - 10:40 | 3319192 Transitory
Transitory's picture

Can't let anyone miss the reference. Hank Johnson worried about Guam tipping over. Good stuff.

 

http://www.youtube.com/watch?v=zNZczIgVXjg

Mon, 03/11/2013 - 10:45 | 3319204 francis_sawyer
francis_sawyer's picture

That would be 'The Honourable Hank Johnson' to you, you peon...

Mon, 03/11/2013 - 14:25 | 3319901 IrritableBowels
IrritableBowels's picture

His district needs to be droned.  Try not to hang your mouth open for too long...

http://www.youtube.com/watch?v=3yznX-hOFT4

 

Mon, 03/11/2013 - 11:22 | 3319288 Miss Expectations
Miss Expectations's picture

The trench is actually something to worry about, along with the attendant east coast tsunamis risk:

The Puerto Rico Trench is the deepest part of the Atlantic Ocean, with water depths exceeding 8,400 meters (figure 1). Its depth is comparable to the deep trenches in the Pacific Ocean. Trenches in the Pacific are located in places where one tectonic plate subducts or slides under another one. The Puerto Rico Trench, in contrast, is located at a boundary between two plates that slide past each other with only a small component of subduction.

The Puerto Rico Trench is also associated with the most negative gravity anomaly on earth, -380 milliGal, which indicates the presence of an active downward force. Finally, a thick limestone platform, which was originally deposited in flat layers near sea level, is now tilted northward at a uniform angle. Its northward edge is at a depth of 4,200 m, and its southern edge can be found on land in Puerto Rico at an elevation of a few hundred meters. Many tectonic models have been proposed to explain this geologically fascinating, tectonically active region; however, none have gained acceptance, and the region remains poorly understood, largely because its underwater location makes it difficult to study.

Because of its high population density and extensive development near the coast, Puerto Rico has a significant risk for earthquakes and tsunamis.

http://oceanexplorer.noaa.gov/explorations/03trench/trench/trench.html

Mon, 03/11/2013 - 12:32 | 3319476 DOT
DOT's picture

Yeah, but my Realtortm said it was a good time to buy.

Mon, 03/11/2013 - 12:12 | 3319421 CheapBastard
CheapBastard's picture

Puerto Rico may be the new Cayman offshore hide-away for these folks? Can it be true?

Mon, 03/11/2013 - 12:19 | 3319434 dirtbagger
dirtbagger's picture

Better try Brazil - Hot Chicks and no Extradition Treaties

Mon, 03/11/2013 - 10:30 | 3319145 otto skorzeny
otto skorzeny's picture

another greedy Tribesman leaving the host body

Mon, 03/11/2013 - 10:31 | 3319159 resurger
resurger's picture

The president of Purtorico will welcome him with a passport.

Mon, 03/11/2013 - 10:32 | 3319167 otto skorzeny
otto skorzeny's picture

I hope El Presidente is not dumb enough to invest in Paulson's funds-their performance sucks ass

Mon, 03/11/2013 - 10:39 | 3319188 resurger
resurger's picture

He is a total fraud no doubt but he's the harbinger of bad things to come 100%. He engineered the ABX trade fraud with GS and won big.

He's short the US atm, i dont think Ben, Obama and wallstreet will like this, so will they squeeze him!

Only time will tell...

Mon, 03/11/2013 - 10:33 | 3319172 francis_sawyer
francis_sawyer's picture

Bernardo, Chino, & Anita need a central bank to steal their beauty shop revenues...

Mon, 03/11/2013 - 12:46 | 3319511 ParkAveFlasher
ParkAveFlasher's picture

Krup you, Paulson!

Mon, 03/11/2013 - 15:18 | 3320107 francis_sawyer
francis_sawyer's picture

Officer KRUPke... Nice parry (+1)

Mon, 03/11/2013 - 10:49 | 3319212 Steve in Greensboro
Steve in Greensboro's picture

You got that backwards.  The hosts are shaking off the parasites.

Mon, 03/11/2013 - 10:28 | 3319152 LongBalls
LongBalls's picture

Ironiclly, Puerto Rico is where the REAL IRS headquarters is located. Just sayin'.

Mon, 03/11/2013 - 14:43 | 3319975 IrritableBowels
IrritableBowels's picture

+1

Already have a pretty long list of things to look up after work.  Thanks for adding to it.

Mon, 03/11/2013 - 10:29 | 3319154 resurger
resurger's picture

So he's short USSAX?

Mon, 03/11/2013 - 10:29 | 3319155 Crash Overide
Crash Overide's picture

Do they have drones in Puerto Rico?

FUCK YOU PAULSON!

Mon, 03/11/2013 - 10:31 | 3319161 firstdivision
firstdivision's picture

With his peformance for the past couple of years, he won't have to worry about paying any taxes soon.

Mon, 03/11/2013 - 10:31 | 3319163 digitlman
digitlman's picture

Condado also home to Fluid Colon Hydrotherapy.

 

https://plus.google.com/116533946066861161216/about?gl=us&hl=en

From one asshole to another, let's stay clean!

 

 

Mon, 03/11/2013 - 10:31 | 3319165 medium giraffe
medium giraffe's picture

The tax payer gets ripped off again?  Must be a Monday.

Mon, 03/11/2013 - 10:33 | 3319170 otto skorzeny
otto skorzeny's picture

or a day ending in "y"

Mon, 03/11/2013 - 10:35 | 3319175 Non Passaran
Non Passaran's picture

How is that?

And how is something "OK" for a guy who has 900K while it's immoral for a guy who has 9 billion? From each according to his net worth, is that it?

If one is suspected to have stolen, he should be held accountable. But that has nothing to do with saying "FU" to the government...

Mon, 03/11/2013 - 10:39 | 3319187 medium giraffe
medium giraffe's picture

So he's made all of his money in the US and wants to take that money out of the US economy, spend it abroad and not pay any tax on it, meaning that the only tax, yet again being paid in the US is by people in normal jobs that don't have luxury of being able to piss off to some tax haven at the drop of a hat.  That's how.

Mon, 03/11/2013 - 10:55 | 3319227 FeralSerf
FeralSerf's picture

Puerto Rico is not "abroad".  It is a U.S. territory.  It was captured booty, like Guam, in America's war with Spain in 1898.  Its residents are U.S. citizens.  It does have different tax rules since it's a territory and not a state.

Mon, 03/11/2013 - 11:07 | 3319246 medium giraffe
medium giraffe's picture

I stand corrected, you are absolutely right, so at least he is still spending within the 'US'.  I imagine with 'AmSoc' in the White House Puerto Rico will be incorporated as a state to close this little loophole asap.

Mon, 03/11/2013 - 11:25 | 3319297 medium giraffe
medium giraffe's picture

Cheers Mags, I got to about 0:33 and was sick in my mouth and had to stop!

Mon, 03/11/2013 - 11:30 | 3319310 magpie
magpie's picture

Why, it was an awe inspiring prediction. You didn't get to the spanish and the cheering.

Mon, 03/11/2013 - 11:48 | 3319358 medium giraffe
medium giraffe's picture

Gawd, so cheesy.  In UK we suffered many long years under the socialists, they're a predictable bunch.  I ilke the bit where El Prez checks that he said his Spanish part correctly.  At least he didn't pull a JFK and say 'Estoy un Churro'...

Mon, 03/11/2013 - 12:20 | 3319438 Sean7k
Sean7k's picture

Puerto Rico being a teritory is actually in the "federal zone", a legal distinction that makes it a creature of the government, without Constitutional protections. It is subject to whatever Congress wishes to legislate and the Supreme Court is powerless to interevene. Their citizenship is with a small "c" and not equal to that provided to non alien resident Citizens of the various states. It is a little understood distinction with huge ramifications. Just saying...

Mon, 03/11/2013 - 12:39 | 3319491 FeralSerf
FeralSerf's picture

Enlighten us.  What are those little understood distinctions?  What's the difference between a U.S. passport issued to a Puerto Rico resident and one issued to a 50 state or D.C. resident?

Mon, 03/11/2013 - 12:57 | 3319535 Sean7k
Sean7k's picture

All passports are commercial contracts that lessen your status as a Citizen. For the most part, it has to do with tax implications and your tax status with the federal government. It is a lengthy study, but you can start at:www.state-citizen.org. I recommend additional study, but the piece by Mercier is illuminating. 

There are multiple types of citizenship and each one has different levels of freedom and constitutional protection. These protections can be trumped through commercial contract law. However, if you are a citizen in the federal zone, you really have no protections at all. 

Enlighten yourself.

Mon, 03/11/2013 - 14:54 | 3320015 Richard Chesler
Richard Chesler's picture

However, if you are a not a part of the corrupt banking and political elite, you really have no protections at all.

fixed it for you.


Mon, 03/11/2013 - 20:02 | 3321128 Schmoo
Schmoo's picture

There is no difference in passports between residents of PR and mainland.

Residents of PR pay no US federal income taxes (no taxation without representation - no vote for president, no voting member of congress, no senators). They do pay Medicare and SS. PR income taxes are fairly high and the services you receive for those taxes are sub-standard.

Crime is very high, with > 1,000 homicides per year on a population base of about 3.8 million. Most is drug-trade related.

Cost of living is very high if you live in San Juan, less in other areas. Electricity, for example, is > $0.25/kW-hour.

Someone like Paulson could live very well in PR, sailing some monster yacht around the Caribbean drunk on Mojito's

Mon, 03/11/2013 - 10:41 | 3319193 otto skorzeny
otto skorzeny's picture

what? you're right-Corzine should be free and the 18 year old kid that sold a dime bag should get 3 years in the slammer-it all makes sense now. fucking idiot

Mon, 03/11/2013 - 10:33 | 3319174 LawsofPhysics
LawsofPhysics's picture

Is this the same Paulson who engineered and profited from the collapse? Then demanded the taxpayers fund TARP/TALF so he could profit again? This motherfucker is a treasonous fucking thief, he is running from the guillotine. Run you fucking rat run!

Mon, 03/11/2013 - 10:37 | 3319185 Crash Overide
Crash Overide's picture

"Run you fucking rat run!"

 

It's more fun that way... reap, sow eventually.

Mon, 03/11/2013 - 13:04 | 3319557 Matt
Matt's picture

This is John; are you thinking of Hank?

Mon, 03/11/2013 - 10:37 | 3319184 Silver Garbage Man
Silver Garbage Man's picture

The writing is on the wall for governments to go after all of the wealth that remains,and some people are going to bail. This trend will continue. Watch for more and more tax on wealth leaving the country. If you want out, the sooner the better. If you stay I would suggest Physical Precious Metals in your hands....that is your best bet to hang on to your life savings.

Mon, 03/11/2013 - 10:39 | 3319186 BlueStreet
BlueStreet's picture

He's probably trying to runaway from his irate investors unfortunately for him they have phones down there. 

Mon, 03/11/2013 - 10:49 | 3319211 espirit
espirit's picture

...and Drones.

Run, but not hide.

Mon, 03/11/2013 - 10:42 | 3319198 Global Hunter
Global Hunter's picture

"Wouldn't you trust your money with somebody so good at managing his own?  (soothing voice) John Paulson funds" new ad slogan, or just tastes great, less filling.

Mon, 03/11/2013 - 10:44 | 3319201 magpie
magpie's picture

Time for full statehood per EO

Mon, 03/11/2013 - 10:45 | 3319203 falak pema
falak pema's picture

paulson had found mikebloombergson in ricotown and that makes a twosome; all it needs is Warrenbuffetson and Billgateson and they will have a true foursome for golf and bridge. The downside for USA-son-less-ness will be 150-200 billion in tax earnings when this becomes the Oligarchy herd fashion. Thats half of the budget deficit Mauldin thinks is no big deal.

so Rico town will be new Caymanista berg where you park your moneyed things and casual sea thongs on its beaches. I'm Long on Johns; maybe on silver if the USD caves in when the Oligarchs pull the plugg on the FED to teach Potus a lesson in who's who and what's what. The Oligarchy game of beggar thy neighbour and save thyne own stash is on !

Mon, 03/11/2013 - 10:52 | 3319217 espirit
espirit's picture

Cue immigration reform, drop the walls, and welcome the new brigade of taxable workerbees.

Mon, 03/11/2013 - 10:54 | 3319224 espirit
espirit's picture

What did you think DHS needed with all those boolits?

Mon, 03/11/2013 - 10:53 | 3319219 Dr. No
Dr. No's picture

Interesting.  No wonder the "votes" for independance/assimulation are a dead heat.  Watch for vote counts to stay 50% or a little higher in favor of status quo.  Rigged.

Mon, 03/11/2013 - 10:55 | 3319226 lasvegaspersona
lasvegaspersona's picture

Patriotism is (was?) paying taxes. Overpaying is idiocy.

Mon, 03/11/2013 - 10:56 | 3319228 LukeWorm
LukeWorm's picture

Do as France: an Exit Tax that obliges expatriates to deposit a sum equal to unrealized capital gains.

Mon, 03/11/2013 - 11:05 | 3319242 Lost Wages
Lost Wages's picture

Obama doesn't care if his rich friends move to Puerto Rico. Obviously this is the crony's way out. Only working class scrubs have to pay taxes.

Mon, 03/11/2013 - 11:22 | 3319290 XRAYD
XRAYD's picture

"Give me your tired, your poor,

Your huddled masses yearning to breathe free,

The wretched refuse of your teeming shore."

 

The Statue of liberty should have a farewell sign for those leaving our shores ... Abandon this land that has blessed you, and its teeming masses of the poor, the sick, and the elderly for shores that are "tax free"!

 

Mon, 03/11/2013 - 12:09 | 3319313 earleflorida
earleflorida's picture

kinda pathetic what our country has turned into in the last 40 years. first, there's nixon, that taught the general populace that 'lying [greed?] is good', and the great exonerator ford, wth his righteous 'quid-pro-quo'... 'the country has already suffered enough' with rockefeller fist-fucking him from behind with $100 bills! moving along past the 'useful`less peanut [emphasis on farming for dollar's] farmer', to a movie star democrat that has an epithany and turns republican-- totally fucks up south-east asia... this comatose reaganomic's gun-slinging commie-hater-- yeah, right?! sadly another useless v.p. takes the reins, a bush'el of peckers does this fool swollow at any given moment per order margaret?, giving us 'no new taxes' and a war on slant-drilling that boggles the gatekeepers of time-travel-- a lipless effigy of hypocrisy this harriman wannabe! but wait, what comes next is the beginning of the end... 'that giant sucking sound', cogenerated from benton, this 'Clintonian Global-Mega-Maniac`ism CockHound', indeed the fornicator of hillary's free-trade, or as in todays urban-lexicon-- the US, who has transfered middle-class wealth to our 'baggard-thy-neighbors' doorsteps, for a mere 'fistful of peso's'-- whilst granting the greatest tax evader and criminal in american history full amnesty, a mark rich-- and the people cheered! but wait, i'm not done... 'god-forbid' we get blessed with another bush-- a baby georgio bush, an anomaly of sorts? part cheerleader and part follower always blowing and sucking  the wind under 'king cheney's [haliburtin] balls! what's a half-million innocent souls...afterall he tried to kill daddio, while dithering with the poison-pot afghanistan controlled by pakistan [but they got nukes] with one eye always on the poppy-prize?! finally, the stink trail ends with the biggest wedgie of all... the king of polarization-- the divide and conquer kenyanesqe obambi... where, when the buck stops, it stops on pennsylvania avenue... alas, no where to take root... last seen floundering in a upstairs/ downstairs maze of ambiguity. teary-eyed no more over a necrophiliac socialist utopian orgy-- or in simpler tyme'd`terms, a class in... and of, a narcissistic hubris self-- indeed true, 'two-faces-have-i', neologism is he, this 'changling of hope' into a tarpit of depair?!    

Mon, 03/11/2013 - 19:35 | 3321044 Clycntct
Clycntct's picture

Pretty fine peice of spit.

Good distance.

Mon, 03/11/2013 - 11:51 | 3319365 cfosnock
cfosnock's picture

I wish Paulson the best of luck, he is going to need it. Puerto Rico is one of the most violent places to live in the USA

Mon, 03/11/2013 - 12:08 | 3319414 epicurious
epicurious's picture

Well a little less than detroit and just like the USA which it is part of incidently, it has a concentration of crime in the inner cities.  Haven't had a mass murders of school children that I can recall though.

Mon, 03/11/2013 - 12:05 | 3319407 epicurious
epicurious's picture

Are you kidding he'll be trading one banana republic for another!!!  Currently their tax revenue office owes me many thousands and they are stalling returning an overpayment.  Can't meet with them, nobody home.  See ya goodbye.  Yup send somemore please.  The Puerto Rican governemnt is more corrupt than the US government... nah   Just different strokes for different folks

Mon, 03/11/2013 - 12:09 | 3319416 MelvilleSaysNo
MelvilleSaysNo's picture

Good for him.  I hope more people follow his example. 

Only a dolt would take umbrage at someone not paying taxes to that shithole known as the District of Corruption.  Does anyone here really take pride in paying the salaries of people like Obama and Fienstein?

Mon, 03/11/2013 - 12:40 | 3319494 spooz
spooz's picture

Right. Wouldn't want any of those financial wizard hedge fund managers to have to pay any taxes for the resources they extract from our economy, them being so PRODUCTIVE and all.  Our economy NEEDS them to set an example to us all that we too can have the AMERICAN DREAM!

Mon, 03/11/2013 - 13:06 | 3319566 Hubbs
Hubbs's picture

I guess I will collect a bunch of thumbs down for this one, but... you know, the US should not allow these "financier types" to rape the wages of working people who invest in the stock market as stodgy "savers". Get them the hell out of this country!

In fact the tax incentives are ass backwards! Unearned income from trading seccurities, (as opposed to those that become rich by  the old time honored return on investment of  borrowed money to start a legitimate, productive business that makes things or adds value and profit) should be taxed at 90% plus!! These guys like Druckenmiller,Soros ,Paulsen , Rogers and Buffet not only  just prosper in this distorted system, they wind up controling it!

Let me digress. In real nature, if one species gets too fat and increases it's numbers (like these Wall Street types) then there is a serious imbalance. The best example is, if the deer population gets too well fed and too numerous, then there probably is an imbalance, like not enough wolves.  Then the deer start eating the vegetable gardens (especially if they live in a namby-pamby state like NY where they are going to prohibit hunting by those who actually might need to put some venison on their dinner table in the first place because NY has taxed the hell out of them and are now too poor to buy food at the grocery store,) or, if not enough beavers then the ponds decrease because the "destructive dams" are not built  and the fish supply diminshes etc.

Capitalism is way out of whack, the financial markets are way out of whack, the political system is way out of whack when individuals can become obscenely rich...while  doing nothing.

Shuffling paper for profit should not be rewarded as nothing productive comes of it. Buffet makes money because some schmuck who works at mundane tasks like growing Buffet's food, building his house, providing him police protection, providing his gas, fixing his TV, giving him medical care, etc are too occupied to keep an eye on him as he turns right around and rips off their savings. 

Just my 2 cents.

Mon, 03/11/2013 - 19:46 | 3321074 Clycntct
Clycntct's picture

"Capitalism is way out of whack"

We are living through the stages of the balancing of nature.

Fk ya it's painful hitting those deer on your bike. So we have to wait for the legislators to get killed in a deer accident.

Or we could speed up the natural process and just shoot a-

Mon, 03/11/2013 - 13:11 | 3319581 Golden_Rule
Golden_Rule's picture

I'll chip in a donation to make sure he gets over there before hurricane season.

Mon, 03/11/2013 - 13:23 | 3319621 Herdee
Herdee's picture

Maybe he's expecting some big gains from his trading positions and just sick and tired of just giving his money away to all the g.d. gangster politicians in Washington.Abolish income tax and capital gains taxes and go with value added or consumption taxes.Until then,you'll have a library size room of books on tax law and an army of government workers in the capital.Income tax was designed to pay for the first world war,what does that tell you?It's developed into 900 or more military bases worldwide.Time to start spending at home on Americans instead of overseas.

Mon, 03/11/2013 - 18:28 | 3319783 spooz
spooz's picture

Right, so as long as we have corruption in the government, looting shoud not be impeded.  Rule of law apparently isn't stopping the financial wizards, but NO NEW TAXES on the gamers because they own the gangster politicians.  So twisted.  Point at the corruption in Washington and pay no attention to the guys who own it.

Paulson put his money on Romney,  a million dollars into the Restore Our Future Super PAC, and got honored by Colbert Report as one of the 22 largest Super PAC donors.  His horse came in second, so he's taking his marbles and going home.

Per WIKI:

 

"In 2008 testimony before US US House Committee on Oversight and Government Reform Paulson was asked about his low tax rate on long-term capital gains and carried interest earnings, “You make a billion dollars, yet your [tax] rate can be as low as 15 percent, ... Do you think that’s fair?” Paulson replied “I believe our tax situation is fair.” before suggesting that teachers and plumbers could also buy stocks and enjoy the same lower long term tax rates he has."

 

Let them eat cake, indeed.

 

Mon, 03/11/2013 - 16:12 | 3320361 MeBizarro
MeBizarro's picture

Because you would never have rampant black market activity if you had a large federal VAT and high local/state sale taxes with no exceptions.

If I am in organized crime or an Indian reservation, this scenario would be like a gift from the heavens.

Mon, 03/11/2013 - 14:07 | 3319793 hooligan2009
hooligan2009's picture

nothing new here...us companies evade taxes and would rather employ people overseas than in the US

http://online.wsj.com/article/SB1000142412788732403480457834813143263474...

tax evasion is legal, so is laying off US workers in favor of foreign domiciled workers..

move along

Mon, 03/11/2013 - 15:13 | 3320091 Hacksaw
Hacksaw's picture

Is it any surprise that a Wall street charlatan would try to keep as much of his "blind squirrel finds acorn" gains as he can? They know it was all just shit house luck and will probably never happen again.

Mon, 03/11/2013 - 16:18 | 3320391 MeBizarro
MeBizarro's picture

Pure scum. The difference between the robber barons and hedge fund managers is that the robber barons with little exception were incredibly nationalistic and in some cases believed they had a moral obligation to give back to society upon their death.

Neither applies to scum like Paulson and his ilk. Never understood why the gun nuts plug a bunch of poor schmucks at a school or other public place. If I ever went off the deep end, it would a drive to New Rochelle at dinner time at a few select restaurants or in Greenwich at a few select bars.

Mon, 03/11/2013 - 16:23 | 3320420 MeBizarro
MeBizarro's picture

That part of Puerto Rico is just increasingly like any large city in Brazil, S. Africa, or India. It has extensive private security and has it own water/sewage and I would bet even localized power generation facilities.

Doesn't matter how violent the rest of Puerto Rico is because that area is almost entirely isolated and self contained.

It is increasingly where he are headed in the US too although you never really read about it or see it,

Mon, 03/11/2013 - 16:32 | 3320477 malek
malek's picture

Only one question: how deep underground?

Mon, 03/11/2013 - 17:24 | 3320666 sbfeibish
sbfeibish's picture

So the first thing I did was check the speed of Puerto Rican broadband. Sob.

Mon, 03/11/2013 - 19:58 | 3321092 Clycntct
Clycntct's picture

So what's the deal? Trying to lower the unemployment rate?(giving me a job)

speed of Puerto Rican broadband

http://www.speedmatters.org/content/states/category/puerto_rico

Puerto Rico Internet Speed Test

World Average Download Speed

Ranking (megabits per second)

1 South Korea 34.1

7 Sweden 22.2

8 Netherlands 20.7

9 Romania 20.3

10 Japan 18.0

25 United States 3.0

PUERTO RICO 0.9

Puerto Rico ranks 52nd in the nation in

internet speeds.

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