The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: re post above estate tax avoidence||Date: 11/19/2009 10:53 AM|
|Author: katiewa||Number: 107723 of 121217|
A little over 2 decades ago, my husband's boss (at a government contracting corporation) was to be promoted to a more senior position. As part of the background check, it was discovered that boss owned a small engineering firm that sometimes contracted with boss's employer. Boss was told this was not allowed for the new position and boss would have to dispose of his interes. There was NEVER any indication of actual wrong-doing, abuse of position, unfair competition, etc. My husband is quite sure that his boss bent over backwards to ensure that he never gave his own company advantage over another.
Boss said, "No problem" and apparently disposed of his interest in the engineering firm. A few years later it was discovered that he had transferred his shares to his father, his father paid income tax (at a pretty low rate compared with boss's tax bracket) on the income from those shares, father gave income from shares to boss, who reimbursed father for income tax paid. Boss was NOT involved in day-to-day operations of the engineering firm, and allegedly stayed out of most decisions altogether.
Boss was fired from his very highly paid position (probably $100K++ in mid-80's plus excellent benefits plus bonuses plus being in line for an executive retirement package in another 8-10 years) and charged with tax fraud by the IRS. He did some prison time, in addition to fines, penalties, and back taxes. I seem to recall that the government contractor employer also charged him with something that resulted in his having to repay certain amounts. At some point in all this, his teenage son, an excellent student and athlete, nice looking, considered a "fine young man", accidently shot himself in their basement.
Boss was considered a great person to work for; a fine, upstanding member of the community; model family man; active leader in his church; etc. He lost everything because, in spite of what he had, he wanted more (The Fisherman and His Wife, http://www.pitt.edu/~dash/grimm019.html).
Your acquaintances appear to be on the verge of doing the same thing. If they want to be "patriotic", they should go oppose the laws openly and work to change them, not expect the rest of us to cover for them by paying additional taxes. And no whining about how "a little guy" can't do anything/be heard in our government: regardless of how they feel about Obama (or Clinton, Reagan, Carter, Ford, Nixon, Johnson, Truman...), he was not born into wealth or power.
If your acquaintances follow through on this stupidity, I hope they get found out.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|