Paulson Leads Funds to Bermuda Tax Dodge Aiding Billionaires (Representatives, Congressmen, legal)

[Goodnight]

Another example of hedge fund managers using loopholes that were designed for thie use

Last year, about $450 million belonging to top executives at billionaire hedge fund manager John Paulson’s New York firm took a quick round trip to Bermuda.
In April, the executives sent the money to a reinsurance company that they’d set up on the island 650 miles off the North Carolina coast. By June, the Bermuda company, which has no employees and sells far less reinsurance than the industry norm, had sent all the cash back to New York, to be invested in Paulson & Co. fun
By recycling the funds through Bermuda-based Pacre Ltd., the Paulson executives are positioned to legally exploit a little-known tax loophole, reduce their personal income taxes and delay paying the bill for years.
“These types of reinsurance companies are permitting U.S. taxpayers to defer -- indefinitely -- U.S. tax,” said David S. Miller, a tax lawyer at Cadwalader Wickersham & Taft LLP. For some, he said, it’s “an unjustified benefit.”

Paulson Leads Funds to Bermuda Tax Dodge Aiding Billionaires - Bloomberg

[petch751]

hmm I wonder if any of those rich people making $250K are using those loopholes.

[alphamale]

Change the tax code.

Stop whining.

[TheHurricaneKid]

Originally Posted by alphamale

Change the tax code.

Stop whining.

Actually it will take a lot of whining in order to get a change in the tax code.

[Goodnight]

Well I do write my congressmen, unfortunately very few others contact their representatives, they actually do respond when voters complain in numbers. There are several loopholes for hedge funds, like they need tax breaks to stay afloat.