Lucrative Moves (For You, Not The Government)
Billionaire John Paulson is supposedly considering a move to Puerto Rico to take advantage of a law that would allow him to avoid paying capital gains taxes on his capital gains. Where can I move to avoid paying income taxes on my taxable income? American Samoa? Guam?
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Previously on The Billfold
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Eff him. He’s a NYC native, grew up in Queens, and runs a hedge fund in NYC. So, after the city helped make him rich by providing transit, schools, world-class museums, NYU, and access to high-value and educated workers, he wants to flee without paying back in to the same system that helped him create so much wealth. Noticed he still wants to keep his hedge fund in NYC while he’s “living” in Puerto Rico – hmm, wonder why that is?
I hope he and all others like him (looking at you, Eduardo Saverin) get exactly what they deserve. Puerto Rico might have low capital gains taxes, but they also don’t have a reputation for a lot of banking stability:
http://dealbook.nytimes.com/2010/04/30/f-d-i-c-sells-3-troubled-puerto-rican-banks/
So, he’s making a ridiculous gamble with his wealth in a petty effort to avoid paying back his fair share. Ugh to him.
@julebsorry I feel a teeny tiny bit different about Saverin, seeing as how he is actually from Brazil and was moved here by his parents to avoid kidnapping (according to Wikipedia) so if he doesn’t want to stay an American citizen, fine. I’m also fine with him not being permitted to re-enter the country, and potentially being caned on the ass if he spits gum on the sidewalk in his lovely new home country. Lots of foreign investors bought Facebook shares and won’t ever pay US capital gains taxes. Also, as far as I know Facebook is still trading well below its IPO price, so even though his Facebook stock is extraordinarily valuable, it probably hasn’t accrued any capital gains.
Someone who was born and raised in the US moving to a US territory to avoid paying taxes to the US Federal government on proceeds from a NYC-based going concern which they actively manage (and not just passively own shares of) is at least a couple notches up on the shady-ometer, in my opinion.
@stuffisthings Good point about Saverin. He can have slightly less of my mental hate.
But as you say, “Someone who was born and raised in the US moving to a US territory to avoid paying taxes to the US Federal government on proceeds from a NYC-based going concern which they actively manage (and not just passively own shares of) is”…a terrible person. He should be ashamed of himself. I’m proud to pay NYC taxes b/c I love my city and am happy to live here.
I owe some capital gains tax this year (like, .00000000001% of what Paulson owes, let’s just be clear) and it kind of freaked me out. But as my dad wisely said, “that’s the price you pay for having money.”
Can they also lose the right to vote? Because those protectorates that don’t have to pay taxes also don’t have the vote. Taxation without representation etc. etc.