The NYT has a long investigative piece explaining the procedures deployed by the Estee Lauder heirs to "shelter" their income from tax, such as donating millions of dollars' worth of art to their own charitable trusts, then taking a gigantic tax write-off.
Estée Lauder Companies went public in 1995, and Ronald Lauder and his mother cashed in hundreds of millions of dollars in stock but managed to sidestep paying tens of millions in federal capital gains taxes by using a hedging technique known as shorting against the box.
Together, Mr. Lauder and his mother borrowed 13.8 million shares of company stock from relatives and sold them to the public during the offering at $26 a share. Selling borrowed shares in this way is referred to as a short position. Since the Lauders retained their own shares, the maneuver allowed them to have a neutral position in the stock, not subject to price swings. Under I.R.S. rules at the time, they avoided paying as much as $95 million in capital gains taxes that might otherwise have been due had they sold their own shares...
“There’s real truth to the idea that the tax code for the 1 percent is different from the tax code for the 99 percent,” said Victor Fleischer, a law professor at the University of Colorado. “Any taxpayer lucky enough to have appreciated property is usually put to a choice: cash out and pay some tax, or hold the property and risk the vagaries of the market. Only the truly rich can use derivatives to get the best of both worlds — lots of cash and very little risk.”
A Family’s Billions, Artfully Sheltered
(via Beth Pratt)
June’s Decentralized Web Summit at San Francisco’s Internet Archive was a ground-breaking, three-day combination of workshops, lectures, demos and a hackathon, all aimed at figuring out how to restore the decentralized character of the early internet — and keep it that way.
Maciej Cegłowski (previously) keynoted the Society for the Advancement of Socio-Economics conference with a characteristically brilliant speech about the “moral economy of tech” — that is, the way that treating social problems like software problems allows techies to absolve themselves of the moral consequences of their actions and the harms that result.
US election law makes it a crime to knowingly solicit campaign funds from foreign nationals who do not have permanent residence in the USA.
Folks used to rely on alarms to protect their home – and before that, the family dog. Now, anyone looking to guard their homes can choose from some high-tech options, including the Amaryllo iCamPRO FHD Home Security Camera (now just $219 in the Boing Boing Store).In fact, this 2015 CES “Best of Innovation” award-winner boasts so many features, it’s […]
If you want a quality vaping experience, it’s usually going to cost you. Vaporizers that deliver a fast, controlled burn will set you back up to $300, which is why the FEZ Vaporizer (now just $99) is an absolute steal.The FEZ dry herb pen does everything that more expensive models handle at a reduced price. It heats up […]
Taking pictures can be challenging. There are a million factors that can influence each shot you take – and unless you’re a trained photographer, you often just focus, click…and cross your fingers.Of course, you can take some of the ambiguity out of your picture-taking with this Hollywood Art Institute Photography Course & Certification package, now […]