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U.S. Tax Hackers: Cheating or Beating?

U.S. TAX CHEATING OR BEATING? HACKERS Between 2008 - 2010, 29 OF AMERICA'S LARGEST CORPORATIONS- companies like G.E., Wells Fargo, and Verizon--PAID NOTHING in corporate taxes. America's wealthiest escape billions in taxes with complex mazes of tax shelters, credits and subsidies. And this April, just like last year, working FAMILIES WITHOUT CREATIVE ACCOUNTANTS WILL PAY HIGHER TAX RATES than Warren Buffet and Mitt Romney. TAX HACKERS AREN'T CRIMINALS, BUT THEY MIGHT BE CHEATERS: BIGGEST BUSINESS TAX HACKER GOOGLE GOOGLE SAVES BILLIONS IN TAXES by shuttling its profits through two perfectly LEGAL TAX HAVENS known to American corporations as "THE DOUBLE IRISH" AND "THE DUTCH SANDWICH." Google first credits its non-U.S. profits to its Irish office and then funnels it through A SHELL COMPANY in the Netherlands to tax-free Bermuda. GOOGLE'S SAVINGS WITH TAX HAVENS 2.4% tax rate +3.1 BILLION 3.0 2.5 2.0 1.5 Google Inc. 1.0 California, USA 0.5 2011 Off -Shore Tax Rate 2007 2009 Last year, Google paid only 2.4% in offshore taxes, THE LOWEST TAX Tax Haven Savings RATE OF THE TOP 5 AMERICAN TECH COMPANIES. With tax hauens, Google effectively SAVED OVER $3.1 BILLION from 2007 to 2009. THE ANATOMY OF GOOGLE'S DOUBLE IRISH" & 'DUTCH SANDWICH" 35% tax rate 12.5% tax rate Google Inc. Google Ireland Limited California, USA Ireland In 2009, Google Ireland Ltd. made 88% of Google's non-U.S. ad sales. IP 0% tax rate $$$ N/A IP $$$ Google Ireland Bermuda Google Ireland Holdings EMPLOYS 2,000 people in IRELAND but CLAIMS MANAGEMENT and pays Google Netherland Holdings $$$ The Netherlands taxes IN BERMUDA. Funneling money to The Netherlands prevents an IRISH HOLDING TAX. O EMPLOYEES are listed for Google Netherland and 99.8% of their holdings are paid out to Google's Bermuda office. Intellectual Property License $$$ Royalties for IP use IP OTHER COMPANIES & THE "DOUBLE IRISH" TRICK Eli Lily & Co. Facebook Microsoft Pfizer Inc. Oracle Corp. INDIVIDUAL TAX HACKING CHAMP MITT ROMNEYC Mitt Romney WOULD BE THE RICHEST PRESIDENT since America's very first head-of-state, George Washington. NETWORTH Romney's net worth, between $190 and $250 million, is 2X GREATER THAN THE COMBINED WEALTH OF Mitt Romney THE LAST EIGHT PRESIDENTS. TAXES &TRICKS 40 44% 3X MORE $3M 30 20 $18 MILLION 15% 10 1963 2012 Federal Tax Rates Federal Taxes Paid In 2011, Romney's federal tax rate is currently 15%. His father's tax rate was NEARLY MADE $21 MILLION from inuestment income, of which ONLY $3 MILLION went to federal income taxes. 3X HIGHER (44%) IN 1963. Romney has MILLIONS of dollars set up in investment funds in the CAYMAN ISLANDS, a Caribbean tax haven. Tax Haven Official documents reveal that Romney's former private equity partnership, Bain Capital, has around 138 SECRETIVE OFF- SHORE FUNDS in the Caymans. TAX HACKERSE AMONG US The auerage American gets most of their income from wages and salaries. Tax hacking for individuals is tougher than for corporations: ONLY 1% OF THE TAXES DUE ON WAGES AND SALARY GO UNCOLLECTED. AMERICAN TAX HACKER 21% 7% $30-50k Salary Bracket $500k-1m Salary Bracket 7% OF PEOPLE making between $30,000 and $50,000 report 21% OF AMERICANS making between $500,000 and $1 million FUDGING THEIR TAXES. REPORT FUDGING. PROFILE OF THE AVERAGE TAX HACKER 55% 64% are men 35% are under 45 yrs are single 45 And 28% said they would STEAL MONEY FROM THEIR CHILDREN'S PIGGY BANK. IRS RESPONSE TO TAX HACKERS 2X AUDIT RATE % 12 - 11 10 AUDIT NOTICE 9. 2009 2011 Millionaires Audi IRS Audit Revenue In the past three years, the IRS has DOUBLED THEIR AUDIT RATE ON MILLIONAIRES. 6% of millionaires It's estimated that for EVERY $1 were audited in 2009 and 12% of SPENT on catching tax euaders yields over $4 IN TAX REVENUE, millionaires uwere audited in 2011. TAX LOSS It's estimated that the federal government LOSES AN ESTIMATED $100 BILLION ANNUALLY due to legal tax havens. THAT'S MORE THAN THE STATE OF NEW YORK'S $88.1 BILLION OPERATING BUDGET FOR 2011. In 1913, the U.S.'s Federal Tax Law consisted of 400 PAGES; by 2011, it consisted of 72,536. With a multiplying tax code, there SEEMS TO BE LITTLE GOVERNMENTAL CONSENSUS on how to best levy and regulate taxes. The offshore financial techniques used by elite businesses and financiers like Google are troubling, but perfectly legal. FOR THE CLEVER AND THE RICH, DEATH AND TAXES AREN'T SO CERTAIN. SOURCES i. http://www.cch.com/ubot2011/WBOT_TaxLowPileup %2828%29_fpdf http://en.wikipedia.org/wiki/Offshore_financial_centrefEffects_on_international_trade ii. http://www.npr.org/2011/09/10/138867588/corporate-taxes-hou-lou-can-you-go iu. http://www.washingtonpost.com/wp-dyn/content/article/2010/10/30/AR2010103004613.html http://www.businessweek.com/magazine/content/10_44/b4201043146825.htm U. ui. http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-shows-how-60-billion-u-s-reuenue-lost-to-tax-loopholes.html uii. http://www.theatlantic.com/business/orchiue/2012/02/would-mitt-romney-be-the-richest-us-president-euer/252402/ vi. http://www.washingtonpost.com/business/economy/mitt-romney-tax-returns-make-him-a-personal-embodiment-of-gop-tax-policy/2012/01/24/glQANusoog_story_1.html http://abcnews.go.com/Politics/OTUS/mitt-romney-made-42-million-paid-14-percent/story?id-15423615#.TOwTgaghN9c http://www.npr.org/2012/02/24/147351064/from-george-romney-to-mitt-a-shrinking-tax-rate xi. http://en.wikipedia.org/wiki/Mitt_Romneya Private_equity xii. http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-hauen/story?id-15378566 xii. http://www.otherwords.org/orticles/wealthy_tax_cheats xiu. http://money.cnn.com/2011/03/28/pf/taxes/tax_cheaters/index.htm Xu. http://www.otherwords.org/articles/wealthy_tax_cheats xui. http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-hauen/story?id-153785664.TOsgmaghPju xuii. http://www.governor.ny.gou/press/020111transformationplan xuiii http://en.wikipedia.org/wiki/Offshore_financial_centretEffects_on_international_trade xix. http://www.businessweek.com/technology/google-tax-cut/google-terminal.html http://www.companyformations.ie/blog/the-dutch-sandwich-explained-and-uhy-ireland-is-the-no1-jurisdiction-in-europe-to-establish-a-company-in-2011/ XX. http://www.companyformations.ie/blog/th dutch-sandwich-explained-and-why- -the-no1-jurisdiction-in-europe-to-establish-a-company- 1-2011/ Xxi Xxii. http://en.wikipedia.org/wiki/Double_Irish_arrangement Xxiii. http://www.huffingtonpost.com/2012/02/27/general-electric-tax-rate_n_1305196.html • • Barack Obama • George W. Bush • Bill Clinton • George H. W. Bush %24 • Ronald Reagan •• Jimmy Carter •• Gerald Ford O• Richard Nixon U.S. TAX CHEATING OR BEATING? HACKERS Between 2008 - 2010, 29 OF AMERICA'S LARGEST CORPORATIONS- companies like G.E., Wells Fargo, and Verizon--PAID NOTHING in corporate taxes. America's wealthiest escape billions in taxes with complex mazes of tax shelters, credits and subsidies. And this April, just like last year, working FAMILIES WITHOUT CREATIVE ACCOUNTANTS WILL PAY HIGHER TAX RATES than Warren Buffet and Mitt Romney. TAX HACKERS AREN'T CRIMINALS, BUT THEY MIGHT BE CHEATERS: BIGGEST BUSINESS TAX HACKER GOOGLE GOOGLE SAVES BILLIONS IN TAXES by shuttling its profits through two perfectly LEGAL TAX HAVENS known to American corporations as "THE DOUBLE IRISH" AND "THE DUTCH SANDWICH." Google first credits its non-U.S. profits to its Irish office and then funnels it through A SHELL COMPANY in the Netherlands to tax-free Bermuda. GOOGLE'S SAVINGS WITH TAX HAVENS 2.4% tax rate +3.1 BILLION 3.0 2.5 2.0 1.5 Google Inc. 1.0 California, USA 0.5 2011 Off -Shore Tax Rate 2007 2009 Last year, Google paid only 2.4% in offshore taxes, THE LOWEST TAX Tax Haven Savings RATE OF THE TOP 5 AMERICAN TECH COMPANIES. With tax hauens, Google effectively SAVED OVER $3.1 BILLION from 2007 to 2009. THE ANATOMY OF GOOGLE'S DOUBLE IRISH" & 'DUTCH SANDWICH" 35% tax rate 12.5% tax rate Google Inc. Google Ireland Limited California, USA Ireland In 2009, Google Ireland Ltd. made 88% of Google's non-U.S. ad sales. IP 0% tax rate $$$ N/A IP $$$ Google Ireland Bermuda Google Ireland Holdings EMPLOYS 2,000 people in IRELAND but CLAIMS MANAGEMENT and pays Google Netherland Holdings $$$ The Netherlands taxes IN BERMUDA. Funneling money to The Netherlands prevents an IRISH HOLDING TAX. O EMPLOYEES are listed for Google Netherland and 99.8% of their holdings are paid out to Google's Bermuda office. Intellectual Property License $$$ Royalties for IP use IP OTHER COMPANIES & THE "DOUBLE IRISH" TRICK Eli Lily & Co. Facebook Microsoft Pfizer Inc. Oracle Corp. INDIVIDUAL TAX HACKING CHAMP MITT ROMNEYC Mitt Romney WOULD BE THE RICHEST PRESIDENT since America's very first head-of-state, George Washington. NETWORTH Romney's net worth, between $190 and $250 million, is 2X GREATER THAN THE COMBINED WEALTH OF Mitt Romney THE LAST EIGHT PRESIDENTS. TAXES &TRICKS 40 44% 3X MORE $3M 30 20 $18 MILLION 15% 10 1963 2012 Federal Tax Rates Federal Taxes Paid In 2011, Romney's federal tax rate is currently 15%. His father's tax rate was NEARLY MADE $21 MILLION from inuestment income, of which ONLY $3 MILLION went to federal income taxes. 3X HIGHER (44%) IN 1963. Romney has MILLIONS of dollars set up in investment funds in the CAYMAN ISLANDS, a Caribbean tax haven. Tax Haven Official documents reveal that Romney's former private equity partnership, Bain Capital, has around 138 SECRETIVE OFF- SHORE FUNDS in the Caymans. TAX HACKERSE AMONG US The auerage American gets most of their income from wages and salaries. Tax hacking for individuals is tougher than for corporations: ONLY 1% OF THE TAXES DUE ON WAGES AND SALARY GO UNCOLLECTED. AMERICAN TAX HACKER 21% 7% $30-50k Salary Bracket $500k-1m Salary Bracket 7% OF PEOPLE making between $30,000 and $50,000 report 21% OF AMERICANS making between $500,000 and $1 million FUDGING THEIR TAXES. REPORT FUDGING. PROFILE OF THE AVERAGE TAX HACKER 55% 64% are men 35% are under 45 yrs are single 45 And 28% said they would STEAL MONEY FROM THEIR CHILDREN'S PIGGY BANK. IRS RESPONSE TO TAX HACKERS 2X AUDIT RATE % 12 - 11 10 AUDIT NOTICE 9. 2009 2011 Millionaires Audi IRS Audit Revenue In the past three years, the IRS has DOUBLED THEIR AUDIT RATE ON MILLIONAIRES. 6% of millionaires It's estimated that for EVERY $1 were audited in 2009 and 12% of SPENT on catching tax euaders yields over $4 IN TAX REVENUE, millionaires uwere audited in 2011. TAX LOSS It's estimated that the federal government LOSES AN ESTIMATED $100 BILLION ANNUALLY due to legal tax havens. THAT'S MORE THAN THE STATE OF NEW YORK'S $88.1 BILLION OPERATING BUDGET FOR 2011. In 1913, the U.S.'s Federal Tax Law consisted of 400 PAGES; by 2011, it consisted of 72,536. With a multiplying tax code, there SEEMS TO BE LITTLE GOVERNMENTAL CONSENSUS on how to best levy and regulate taxes. The offshore financial techniques used by elite businesses and financiers like Google are troubling, but perfectly legal. FOR THE CLEVER AND THE RICH, DEATH AND TAXES AREN'T SO CERTAIN. SOURCES i. http://www.cch.com/ubot2011/WBOT_TaxLowPileup %2828%29_fpdf http://en.wikipedia.org/wiki/Offshore_financial_centrefEffects_on_international_trade ii. http://www.npr.org/2011/09/10/138867588/corporate-taxes-hou-lou-can-you-go iu. http://www.washingtonpost.com/wp-dyn/content/article/2010/10/30/AR2010103004613.html http://www.businessweek.com/magazine/content/10_44/b4201043146825.htm U. ui. http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-shows-how-60-billion-u-s-reuenue-lost-to-tax-loopholes.html uii. http://www.theatlantic.com/business/orchiue/2012/02/would-mitt-romney-be-the-richest-us-president-euer/252402/ vi. http://www.washingtonpost.com/business/economy/mitt-romney-tax-returns-make-him-a-personal-embodiment-of-gop-tax-policy/2012/01/24/glQANusoog_story_1.html http://abcnews.go.com/Politics/OTUS/mitt-romney-made-42-million-paid-14-percent/story?id-15423615#.TOwTgaghN9c http://www.npr.org/2012/02/24/147351064/from-george-romney-to-mitt-a-shrinking-tax-rate xi. http://en.wikipedia.org/wiki/Mitt_Romneya Private_equity xii. http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-hauen/story?id-15378566 xii. http://www.otherwords.org/orticles/wealthy_tax_cheats xiu. http://money.cnn.com/2011/03/28/pf/taxes/tax_cheaters/index.htm Xu. http://www.otherwords.org/articles/wealthy_tax_cheats xui. http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-hauen/story?id-153785664.TOsgmaghPju xuii. http://www.governor.ny.gou/press/020111transformationplan xuiii http://en.wikipedia.org/wiki/Offshore_financial_centretEffects_on_international_trade xix. http://www.businessweek.com/technology/google-tax-cut/google-terminal.html http://www.companyformations.ie/blog/the-dutch-sandwich-explained-and-uhy-ireland-is-the-no1-jurisdiction-in-europe-to-establish-a-company-in-2011/ XX. http://www.companyformations.ie/blog/th dutch-sandwich-explained-and-why- -the-no1-jurisdiction-in-europe-to-establish-a-company- 1-2011/ Xxi Xxii. http://en.wikipedia.org/wiki/Double_Irish_arrangement Xxiii. http://www.huffingtonpost.com/2012/02/27/general-electric-tax-rate_n_1305196.html • • Barack Obama • George W. Bush • Bill Clinton • George H. W. Bush %24 • Ronald Reagan •• Jimmy Carter •• Gerald Ford O• Richard Nixon U.S. TAX CHEATING OR BEATING? HACKERS Between 2008 - 2010, 29 OF AMERICA'S LARGEST CORPORATIONS- companies like G.E., Wells Fargo, and Verizon--PAID NOTHING in corporate taxes. America's wealthiest escape billions in taxes with complex mazes of tax shelters, credits and subsidies. And this April, just like last year, working FAMILIES WITHOUT CREATIVE ACCOUNTANTS WILL PAY HIGHER TAX RATES than Warren Buffet and Mitt Romney. TAX HACKERS AREN'T CRIMINALS, BUT THEY MIGHT BE CHEATERS: BIGGEST BUSINESS TAX HACKER GOOGLE GOOGLE SAVES BILLIONS IN TAXES by shuttling its profits through two perfectly LEGAL TAX HAVENS known to American corporations as "THE DOUBLE IRISH" AND "THE DUTCH SANDWICH." Google first credits its non-U.S. profits to its Irish office and then funnels it through A SHELL COMPANY in the Netherlands to tax-free Bermuda. GOOGLE'S SAVINGS WITH TAX HAVENS 2.4% tax rate +3.1 BILLION 3.0 2.5 2.0 1.5 Google Inc. 1.0 California, USA 0.5 2011 Off -Shore Tax Rate 2007 2009 Last year, Google paid only 2.4% in offshore taxes, THE LOWEST TAX Tax Haven Savings RATE OF THE TOP 5 AMERICAN TECH COMPANIES. With tax hauens, Google effectively SAVED OVER $3.1 BILLION from 2007 to 2009. THE ANATOMY OF GOOGLE'S DOUBLE IRISH" & 'DUTCH SANDWICH" 35% tax rate 12.5% tax rate Google Inc. Google Ireland Limited California, USA Ireland In 2009, Google Ireland Ltd. made 88% of Google's non-U.S. ad sales. IP 0% tax rate $$$ N/A IP $$$ Google Ireland Bermuda Google Ireland Holdings EMPLOYS 2,000 people in IRELAND but CLAIMS MANAGEMENT and pays Google Netherland Holdings $$$ The Netherlands taxes IN BERMUDA. Funneling money to The Netherlands prevents an IRISH HOLDING TAX. O EMPLOYEES are listed for Google Netherland and 99.8% of their holdings are paid out to Google's Bermuda office. Intellectual Property License $$$ Royalties for IP use IP OTHER COMPANIES & THE "DOUBLE IRISH" TRICK Eli Lily & Co. Facebook Microsoft Pfizer Inc. Oracle Corp. INDIVIDUAL TAX HACKING CHAMP MITT ROMNEYC Mitt Romney WOULD BE THE RICHEST PRESIDENT since America's very first head-of-state, George Washington. NETWORTH Romney's net worth, between $190 and $250 million, is 2X GREATER THAN THE COMBINED WEALTH OF Mitt Romney THE LAST EIGHT PRESIDENTS. TAXES &TRICKS 40 44% 3X MORE $3M 30 20 $18 MILLION 15% 10 1963 2012 Federal Tax Rates Federal Taxes Paid In 2011, Romney's federal tax rate is currently 15%. His father's tax rate was NEARLY MADE $21 MILLION from inuestment income, of which ONLY $3 MILLION went to federal income taxes. 3X HIGHER (44%) IN 1963. Romney has MILLIONS of dollars set up in investment funds in the CAYMAN ISLANDS, a Caribbean tax haven. Tax Haven Official documents reveal that Romney's former private equity partnership, Bain Capital, has around 138 SECRETIVE OFF- SHORE FUNDS in the Caymans. TAX HACKERSE AMONG US The auerage American gets most of their income from wages and salaries. Tax hacking for individuals is tougher than for corporations: ONLY 1% OF THE TAXES DUE ON WAGES AND SALARY GO UNCOLLECTED. AMERICAN TAX HACKER 21% 7% $30-50k Salary Bracket $500k-1m Salary Bracket 7% OF PEOPLE making between $30,000 and $50,000 report 21% OF AMERICANS making between $500,000 and $1 million FUDGING THEIR TAXES. REPORT FUDGING. PROFILE OF THE AVERAGE TAX HACKER 55% 64% are men 35% are under 45 yrs are single 45 And 28% said they would STEAL MONEY FROM THEIR CHILDREN'S PIGGY BANK. IRS RESPONSE TO TAX HACKERS 2X AUDIT RATE % 12 - 11 10 AUDIT NOTICE 9. 2009 2011 Millionaires Audi IRS Audit Revenue In the past three years, the IRS has DOUBLED THEIR AUDIT RATE ON MILLIONAIRES. 6% of millionaires It's estimated that for EVERY $1 were audited in 2009 and 12% of SPENT on catching tax euaders yields over $4 IN TAX REVENUE, millionaires uwere audited in 2011. TAX LOSS It's estimated that the federal government LOSES AN ESTIMATED $100 BILLION ANNUALLY due to legal tax havens. THAT'S MORE THAN THE STATE OF NEW YORK'S $88.1 BILLION OPERATING BUDGET FOR 2011. In 1913, the U.S.'s Federal Tax Law consisted of 400 PAGES; by 2011, it consisted of 72,536. With a multiplying tax code, there SEEMS TO BE LITTLE GOVERNMENTAL CONSENSUS on how to best levy and regulate taxes. The offshore financial techniques used by elite businesses and financiers like Google are troubling, but perfectly legal. FOR THE CLEVER AND THE RICH, DEATH AND TAXES AREN'T SO CERTAIN. SOURCES i. http://www.cch.com/ubot2011/WBOT_TaxLowPileup %2828%29_fpdf http://en.wikipedia.org/wiki/Offshore_financial_centrefEffects_on_international_trade ii. http://www.npr.org/2011/09/10/138867588/corporate-taxes-hou-lou-can-you-go iu. http://www.washingtonpost.com/wp-dyn/content/article/2010/10/30/AR2010103004613.html http://www.businessweek.com/magazine/content/10_44/b4201043146825.htm U. ui. http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-shows-how-60-billion-u-s-reuenue-lost-to-tax-loopholes.html uii. http://www.theatlantic.com/business/orchiue/2012/02/would-mitt-romney-be-the-richest-us-president-euer/252402/ vi. http://www.washingtonpost.com/business/economy/mitt-romney-tax-returns-make-him-a-personal-embodiment-of-gop-tax-policy/2012/01/24/glQANusoog_story_1.html http://abcnews.go.com/Politics/OTUS/mitt-romney-made-42-million-paid-14-percent/story?id-15423615#.TOwTgaghN9c http://www.npr.org/2012/02/24/147351064/from-george-romney-to-mitt-a-shrinking-tax-rate xi. http://en.wikipedia.org/wiki/Mitt_Romneya Private_equity xii. http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-hauen/story?id-15378566 xii. http://www.otherwords.org/orticles/wealthy_tax_cheats xiu. http://money.cnn.com/2011/03/28/pf/taxes/tax_cheaters/index.htm Xu. http://www.otherwords.org/articles/wealthy_tax_cheats xui. http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-hauen/story?id-153785664.TOsgmaghPju xuii. http://www.governor.ny.gou/press/020111transformationplan xuiii http://en.wikipedia.org/wiki/Offshore_financial_centretEffects_on_international_trade xix. http://www.businessweek.com/technology/google-tax-cut/google-terminal.html http://www.companyformations.ie/blog/the-dutch-sandwich-explained-and-uhy-ireland-is-the-no1-jurisdiction-in-europe-to-establish-a-company-in-2011/ XX. http://www.companyformations.ie/blog/th dutch-sandwich-explained-and-why- -the-no1-jurisdiction-in-europe-to-establish-a-company- 1-2011/ Xxi Xxii. http://en.wikipedia.org/wiki/Double_Irish_arrangement Xxiii. http://www.huffingtonpost.com/2012/02/27/general-electric-tax-rate_n_1305196.html • • Barack Obama • George W. Bush • Bill Clinton • George H. W. Bush %24 • Ronald Reagan •• Jimmy Carter •• Gerald Ford O• Richard Nixon U.S. TAX CHEATING OR BEATING? HACKERS Between 2008 - 2010, 29 OF AMERICA'S LARGEST CORPORATIONS- companies like G.E., Wells Fargo, and Verizon--PAID NOTHING in corporate taxes. America's wealthiest escape billions in taxes with complex mazes of tax shelters, credits and subsidies. And this April, just like last year, working FAMILIES WITHOUT CREATIVE ACCOUNTANTS WILL PAY HIGHER TAX RATES than Warren Buffet and Mitt Romney. TAX HACKERS AREN'T CRIMINALS, BUT THEY MIGHT BE CHEATERS: BIGGEST BUSINESS TAX HACKER GOOGLE GOOGLE SAVES BILLIONS IN TAXES by shuttling its profits through two perfectly LEGAL TAX HAVENS known to American corporations as "THE DOUBLE IRISH" AND "THE DUTCH SANDWICH." Google first credits its non-U.S. profits to its Irish office and then funnels it through A SHELL COMPANY in the Netherlands to tax-free Bermuda. GOOGLE'S SAVINGS WITH TAX HAVENS 2.4% tax rate +3.1 BILLION 3.0 2.5 2.0 1.5 Google Inc. 1.0 California, USA 0.5 2011 Off -Shore Tax Rate 2007 2009 Last year, Google paid only 2.4% in offshore taxes, THE LOWEST TAX Tax Haven Savings RATE OF THE TOP 5 AMERICAN TECH COMPANIES. With tax hauens, Google effectively SAVED OVER $3.1 BILLION from 2007 to 2009. THE ANATOMY OF GOOGLE'S DOUBLE IRISH" & 'DUTCH SANDWICH" 35% tax rate 12.5% tax rate Google Inc. Google Ireland Limited California, USA Ireland In 2009, Google Ireland Ltd. made 88% of Google's non-U.S. ad sales. IP 0% tax rate $$$ N/A IP $$$ Google Ireland Bermuda Google Ireland Holdings EMPLOYS 2,000 people in IRELAND but CLAIMS MANAGEMENT and pays Google Netherland Holdings $$$ The Netherlands taxes IN BERMUDA. Funneling money to The Netherlands prevents an IRISH HOLDING TAX. O EMPLOYEES are listed for Google Netherland and 99.8% of their holdings are paid out to Google's Bermuda office. Intellectual Property License $$$ Royalties for IP use IP OTHER COMPANIES & THE "DOUBLE IRISH" TRICK Eli Lily & Co. Facebook Microsoft Pfizer Inc. Oracle Corp. INDIVIDUAL TAX HACKING CHAMP MITT ROMNEYC Mitt Romney WOULD BE THE RICHEST PRESIDENT since America's very first head-of-state, George Washington. NETWORTH Romney's net worth, between $190 and $250 million, is 2X GREATER THAN THE COMBINED WEALTH OF Mitt Romney THE LAST EIGHT PRESIDENTS. TAXES &TRICKS 40 44% 3X MORE $3M 30 20 $18 MILLION 15% 10 1963 2012 Federal Tax Rates Federal Taxes Paid In 2011, Romney's federal tax rate is currently 15%. His father's tax rate was NEARLY MADE $21 MILLION from inuestment income, of which ONLY $3 MILLION went to federal income taxes. 3X HIGHER (44%) IN 1963. Romney has MILLIONS of dollars set up in investment funds in the CAYMAN ISLANDS, a Caribbean tax haven. Tax Haven Official documents reveal that Romney's former private equity partnership, Bain Capital, has around 138 SECRETIVE OFF- SHORE FUNDS in the Caymans. TAX HACKERSE AMONG US The auerage American gets most of their income from wages and salaries. Tax hacking for individuals is tougher than for corporations: ONLY 1% OF THE TAXES DUE ON WAGES AND SALARY GO UNCOLLECTED. AMERICAN TAX HACKER 21% 7% $30-50k Salary Bracket $500k-1m Salary Bracket 7% OF PEOPLE making between $30,000 and $50,000 report 21% OF AMERICANS making between $500,000 and $1 million FUDGING THEIR TAXES. REPORT FUDGING. PROFILE OF THE AVERAGE TAX HACKER 55% 64% are men 35% are under 45 yrs are single 45 And 28% said they would STEAL MONEY FROM THEIR CHILDREN'S PIGGY BANK. IRS RESPONSE TO TAX HACKERS 2X AUDIT RATE % 12 - 11 10 AUDIT NOTICE 9. 2009 2011 Millionaires Audi IRS Audit Revenue In the past three years, the IRS has DOUBLED THEIR AUDIT RATE ON MILLIONAIRES. 6% of millionaires It's estimated that for EVERY $1 were audited in 2009 and 12% of SPENT on catching tax euaders yields over $4 IN TAX REVENUE, millionaires uwere audited in 2011. TAX LOSS It's estimated that the federal government LOSES AN ESTIMATED $100 BILLION ANNUALLY due to legal tax havens. THAT'S MORE THAN THE STATE OF NEW YORK'S $88.1 BILLION OPERATING BUDGET FOR 2011. In 1913, the U.S.'s Federal Tax Law consisted of 400 PAGES; by 2011, it consisted of 72,536. With a multiplying tax code, there SEEMS TO BE LITTLE GOVERNMENTAL CONSENSUS on how to best levy and regulate taxes. The offshore financial techniques used by elite businesses and financiers like Google are troubling, but perfectly legal. FOR THE CLEVER AND THE RICH, DEATH AND TAXES AREN'T SO CERTAIN. SOURCES i. http://www.cch.com/ubot2011/WBOT_TaxLowPileup %2828%29_fpdf http://en.wikipedia.org/wiki/Offshore_financial_centrefEffects_on_international_trade ii. http://www.npr.org/2011/09/10/138867588/corporate-taxes-hou-lou-can-you-go iu. http://www.washingtonpost.com/wp-dyn/content/article/2010/10/30/AR2010103004613.html http://www.businessweek.com/magazine/content/10_44/b4201043146825.htm U. ui. http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-shows-how-60-billion-u-s-reuenue-lost-to-tax-loopholes.html uii. http://www.theatlantic.com/business/orchiue/2012/02/would-mitt-romney-be-the-richest-us-president-euer/252402/ vi. http://www.washingtonpost.com/business/economy/mitt-romney-tax-returns-make-him-a-personal-embodiment-of-gop-tax-policy/2012/01/24/glQANusoog_story_1.html http://abcnews.go.com/Politics/OTUS/mitt-romney-made-42-million-paid-14-percent/story?id-15423615#.TOwTgaghN9c http://www.npr.org/2012/02/24/147351064/from-george-romney-to-mitt-a-shrinking-tax-rate xi. http://en.wikipedia.org/wiki/Mitt_Romneya Private_equity xii. http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-hauen/story?id-15378566 xii. http://www.otherwords.org/orticles/wealthy_tax_cheats xiu. http://money.cnn.com/2011/03/28/pf/taxes/tax_cheaters/index.htm Xu. http://www.otherwords.org/articles/wealthy_tax_cheats xui. http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-hauen/story?id-153785664.TOsgmaghPju xuii. http://www.governor.ny.gou/press/020111transformationplan xuiii http://en.wikipedia.org/wiki/Offshore_financial_centretEffects_on_international_trade xix. http://www.businessweek.com/technology/google-tax-cut/google-terminal.html http://www.companyformations.ie/blog/the-dutch-sandwich-explained-and-uhy-ireland-is-the-no1-jurisdiction-in-europe-to-establish-a-company-in-2011/ XX. http://www.companyformations.ie/blog/th dutch-sandwich-explained-and-why- -the-no1-jurisdiction-in-europe-to-establish-a-company- 1-2011/ Xxi Xxii. http://en.wikipedia.org/wiki/Double_Irish_arrangement Xxiii. http://www.huffingtonpost.com/2012/02/27/general-electric-tax-rate_n_1305196.html • • Barack Obama • George W. Bush • Bill Clinton • George H. W. Bush %24 • Ronald Reagan •• Jimmy Carter •• Gerald Ford O• Richard Nixon U.S. TAX CHEATING OR BEATING? HACKERS Between 2008 - 2010, 29 OF AMERICA'S LARGEST CORPORATIONS- companies like G.E., Wells Fargo, and Verizon--PAID NOTHING in corporate taxes. America's wealthiest escape billions in taxes with complex mazes of tax shelters, credits and subsidies. And this April, just like last year, working FAMILIES WITHOUT CREATIVE ACCOUNTANTS WILL PAY HIGHER TAX RATES than Warren Buffet and Mitt Romney. TAX HACKERS AREN'T CRIMINALS, BUT THEY MIGHT BE CHEATERS: BIGGEST BUSINESS TAX HACKER GOOGLE GOOGLE SAVES BILLIONS IN TAXES by shuttling its profits through two perfectly LEGAL TAX HAVENS known to American corporations as "THE DOUBLE IRISH" AND "THE DUTCH SANDWICH." Google first credits its non-U.S. profits to its Irish office and then funnels it through A SHELL COMPANY in the Netherlands to tax-free Bermuda. GOOGLE'S SAVINGS WITH TAX HAVENS 2.4% tax rate +3.1 BILLION 3.0 2.5 2.0 1.5 Google Inc. 1.0 California, USA 0.5 2011 Off -Shore Tax Rate 2007 2009 Last year, Google paid only 2.4% in offshore taxes, THE LOWEST TAX Tax Haven Savings RATE OF THE TOP 5 AMERICAN TECH COMPANIES. With tax hauens, Google effectively SAVED OVER $3.1 BILLION from 2007 to 2009. THE ANATOMY OF GOOGLE'S DOUBLE IRISH" & 'DUTCH SANDWICH" 35% tax rate 12.5% tax rate Google Inc. Google Ireland Limited California, USA Ireland In 2009, Google Ireland Ltd. made 88% of Google's non-U.S. ad sales. IP 0% tax rate $$$ N/A IP $$$ Google Ireland Bermuda Google Ireland Holdings EMPLOYS 2,000 people in IRELAND but CLAIMS MANAGEMENT and pays Google Netherland Holdings $$$ The Netherlands taxes IN BERMUDA. Funneling money to The Netherlands prevents an IRISH HOLDING TAX. O EMPLOYEES are listed for Google Netherland and 99.8% of their holdings are paid out to Google's Bermuda office. Intellectual Property License $$$ Royalties for IP use IP OTHER COMPANIES & THE "DOUBLE IRISH" TRICK Eli Lily & Co. Facebook Microsoft Pfizer Inc. Oracle Corp. INDIVIDUAL TAX HACKING CHAMP MITT ROMNEYC Mitt Romney WOULD BE THE RICHEST PRESIDENT since America's very first head-of-state, George Washington. NETWORTH Romney's net worth, between $190 and $250 million, is 2X GREATER THAN THE COMBINED WEALTH OF Mitt Romney THE LAST EIGHT PRESIDENTS. TAXES &TRICKS 40 44% 3X MORE $3M 30 20 $18 MILLION 15% 10 1963 2012 Federal Tax Rates Federal Taxes Paid In 2011, Romney's federal tax rate is currently 15%. His father's tax rate was NEARLY MADE $21 MILLION from inuestment income, of which ONLY $3 MILLION went to federal income taxes. 3X HIGHER (44%) IN 1963. Romney has MILLIONS of dollars set up in investment funds in the CAYMAN ISLANDS, a Caribbean tax haven. Tax Haven Official documents reveal that Romney's former private equity partnership, Bain Capital, has around 138 SECRETIVE OFF- SHORE FUNDS in the Caymans. TAX HACKERSE AMONG US The auerage American gets most of their income from wages and salaries. Tax hacking for individuals is tougher than for corporations: ONLY 1% OF THE TAXES DUE ON WAGES AND SALARY GO UNCOLLECTED. AMERICAN TAX HACKER 21% 7% $30-50k Salary Bracket $500k-1m Salary Bracket 7% OF PEOPLE making between $30,000 and $50,000 report 21% OF AMERICANS making between $500,000 and $1 million FUDGING THEIR TAXES. REPORT FUDGING. PROFILE OF THE AVERAGE TAX HACKER 55% 64% are men 35% are under 45 yrs are single 45 And 28% said they would STEAL MONEY FROM THEIR CHILDREN'S PIGGY BANK. IRS RESPONSE TO TAX HACKERS 2X AUDIT RATE % 12 - 11 10 AUDIT NOTICE 9. 2009 2011 Millionaires Audi IRS Audit Revenue In the past three years, the IRS has DOUBLED THEIR AUDIT RATE ON MILLIONAIRES. 6% of millionaires It's estimated that for EVERY $1 were audited in 2009 and 12% of SPENT on catching tax euaders yields over $4 IN TAX REVENUE, millionaires uwere audited in 2011. TAX LOSS It's estimated that the federal government LOSES AN ESTIMATED $100 BILLION ANNUALLY due to legal tax havens. THAT'S MORE THAN THE STATE OF NEW YORK'S $88.1 BILLION OPERATING BUDGET FOR 2011. In 1913, the U.S.'s Federal Tax Law consisted of 400 PAGES; by 2011, it consisted of 72,536. With a multiplying tax code, there SEEMS TO BE LITTLE GOVERNMENTAL CONSENSUS on how to best levy and regulate taxes. The offshore financial techniques used by elite businesses and financiers like Google are troubling, but perfectly legal. FOR THE CLEVER AND THE RICH, DEATH AND TAXES AREN'T SO CERTAIN. SOURCES i. http://www.cch.com/ubot2011/WBOT_TaxLowPileup %2828%29_fpdf http://en.wikipedia.org/wiki/Offshore_financial_centrefEffects_on_international_trade ii. http://www.npr.org/2011/09/10/138867588/corporate-taxes-hou-lou-can-you-go iu. http://www.washingtonpost.com/wp-dyn/content/article/2010/10/30/AR2010103004613.html http://www.businessweek.com/magazine/content/10_44/b4201043146825.htm U. ui. http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-shows-how-60-billion-u-s-reuenue-lost-to-tax-loopholes.html uii. http://www.theatlantic.com/business/orchiue/2012/02/would-mitt-romney-be-the-richest-us-president-euer/252402/ vi. http://www.washingtonpost.com/business/economy/mitt-romney-tax-returns-make-him-a-personal-embodiment-of-gop-tax-policy/2012/01/24/glQANusoog_story_1.html http://abcnews.go.com/Politics/OTUS/mitt-romney-made-42-million-paid-14-percent/story?id-15423615#.TOwTgaghN9c http://www.npr.org/2012/02/24/147351064/from-george-romney-to-mitt-a-shrinking-tax-rate xi. http://en.wikipedia.org/wiki/Mitt_Romneya Private_equity xii. http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-hauen/story?id-15378566 xii. http://www.otherwords.org/orticles/wealthy_tax_cheats xiu. http://money.cnn.com/2011/03/28/pf/taxes/tax_cheaters/index.htm Xu. http://www.otherwords.org/articles/wealthy_tax_cheats xui. http://abcnews.go.com/Blotter/romney-parks-millions-offshore-tax-hauen/story?id-153785664.TOsgmaghPju xuii. http://www.governor.ny.gou/press/020111transformationplan xuiii http://en.wikipedia.org/wiki/Offshore_financial_centretEffects_on_international_trade xix. http://www.businessweek.com/technology/google-tax-cut/google-terminal.html http://www.companyformations.ie/blog/the-dutch-sandwich-explained-and-uhy-ireland-is-the-no1-jurisdiction-in-europe-to-establish-a-company-in-2011/ XX. http://www.companyformations.ie/blog/th dutch-sandwich-explained-and-why- -the-no1-jurisdiction-in-europe-to-establish-a-company- 1-2011/ Xxi Xxii. http://en.wikipedia.org/wiki/Double_Irish_arrangement Xxiii. http://www.huffingtonpost.com/2012/02/27/general-electric-tax-rate_n_1305196.html • • Barack Obama • George W. Bush • Bill Clinton • George H. W. Bush %24 • Ronald Reagan •• Jimmy Carter •• Gerald Ford O• Richard Nixon

U.S. Tax Hackers: Cheating or Beating?

shared by Angel on Apr 25
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Tax time is stressful for everyone. It can be overwhelming collecting all the necessary forms and making sure everything is in order before that dreaded day in April hits. I thought that getting ready...

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