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Author: GADawg Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: Re: How exactly do accountants help the rich? Date: 4/16/2003 11:28 AM
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I read a New York Times article recently about this guy who opened his own tax-exempt insurance company and used it to avoid paying taxes on his gigantic investment profits. It is all supposedly legal.

Most information you'll ever see on amazing, legal, tax-exempt loopholes is completely wrong. Insurance companies pay taxes just like all other C-corporations. One possibility, and I've not seen the article, is that he could have started his own insurance company with a few million (minimum) that he would not have to pay tax on. However, that money is now at risk in an insurance company and he can't get to it, other than to shut down the company and pay tax on that money.

As someone who works in the insurance industry, I'd much rather pay the tax on a few million than start an insurance company.
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