George Soros often leads the left in the rally cry for the rich to pay more taxes so others can get a free ride, but apparently Soros hasn’t been paying his share thanks to an investment loophole.
The 84-year-old BILLIONAIRE used a loophole that allowed him to defer taxes on fees paid to him by his clients at Soros Fund Management, and put them in a fund that at the end of 2013 was worth $13.3 BILLION.
In 2008 however, congress voted to close this loophole and all taxes had to be paid by 2017. According to an article from Bloomberg, “A New York-based money manager such as Soros would be subject to a federal rate of 39.6 percent, combined state and city levies totaling 12 percent, and an additional 3.8 percent tax on investment income to pay for Obamacare.” This would create a tax bill of almost $7 BILLION!
Whole Soros refuses to comment, we know that he transferred assets to Ireland just before the loophole was closed in 2008. Clearly this man built his wealth on utilizing loopholes in the government to avoid taxes. Soros isn’t the only hedge fund manager using this deferrment strategy but he’s the only one leading the liberal left in their calls for socialism.
According to Bloomberg:
A Hungarian émigré, Soros started his career in New York City in the 1950s and gained a wide reputation for his investing prowess in 1992 by netting $1 billion with a bet that the U.K. would be forced to devalue the pound. His Quantum Endowment Fund returned an average of 20 percent annually until 2011, when he returned outside investors’ money and converted Soros Fund Management into a family office investing solely on behalf of Soros and his family members and his Open Society foundations, a worldwide network of philanthropies that promotes democracy, the rule of law, and economic advancement.
Soros started what would become the Quantum Endowment Fund in 1973 with about $12 million from investors, primarily wealthy Europeans, basing it in the then-Netherlands Antilles, according to a book he published in 1995 called Soros on Soros. He immediately began reinvesting almost all of his share of client profits, he wrote. When Soros founded his firm, nothing in U.S. law prevented money managers from postponing the acceptance of client fees and letting the money remain in their funds, where it could grow untaxed. But doing so wasn’t really an option for funds based in the U.S., because if managers didn’t take the fees, their clients wouldn’t be able to deduct them from their own taxable income.
By setting up offshore accounts they were able to defer the taxes for all parties and accrue mass amounts of non-taxed money. When this became the “norm” for these fund managers, congress noticed. In October of 2008 President George W. Bush sign laws into place that stopped this tax deferment.
Just as the law was about to go into effect Soros incorporated transferred a large amount of their “business” to a new company in Ireland. It is well known that in Ireland the tax percent is just 25 percent and can be distributed a bit differently, meaning even less taxes. Just last year he moved it to the Cayman Islands.
Apparently while calling for a more evenly distributed wealth in the country he’s been hiding his. There are many more loopholes and deferment opportunities that he has probably abused over his career.
Despite the movement of his money and the loopholes he’s possibly still finding, he still has a huge tax bill due to the government in 2017. Four different tax attorneys say there’s no way to avoid it.
Soros has AT LEAST $13.3 BILLION he owes on! Here’s hoping he pays up and then realizes people need to work for what they have. Let’s see how much he likes it when his money is used to pay for lazy people to get a free ride.