Tag Archives | welcome to the real world

Grammy winner Lauryn Hill, celebrity tax evader, gets no love from the IRS

It’s pretty easy to skip filing a tax return. Even a second or third return. But sooner or later, the IRS has a habit of catching up with you. Especially if you’re a high-profile rich person, like hip-hop and R&B artist and eight-time Grammy winner Lauryn Hill.

Hill was sentenced to three months in prison and another three months of home confinement after failing to file tax returns in 2005, 2006 and 2007, as reported in the New York Times. She’s supposed to report to prison on July 8.

Her attorney said before the sentencing that Hill had paid more than $900,000 to settle her tax debts and penalties, according to the Huffington Post. Hill didn’t pony up until after federal judge Madeline Cox Arleo criticized her in court in Newark, saying, “This is not someone who stands before the court penniless. This is a criminal matter. Actions speak louder than words, and there has been no effort here to pay these taxes.”

Apparently the payment didn’t mollify Arleo, who obviously felt Hill deserved a little quiet time to think over her bad behavior.

Now that’s a home run: McCourts back in court over billion-dollar Dodgers franchise

Nasty multi-million dollar divorces make for some great financial insights, especially when they wind up in court.

Today’s lesson: How profitable it can be to own a professional sports franchise, and how the tax code’s preferential rates for capital gains benefit the super-wealthy.

Frank McCourt owned the Los Angeles Dodgers. When he and his wife Jamie divorced, Jamie got $131 million as a settlement.

They were back in court this week. The reason: Shortly after the divorce, Frank sold the Los Angeles Dodgers for $2.15 billion. Jamie’s lawyers say the settlement should be thrown out because she was misled about the value of the team. (Isn’t it entertaining when people fight over hundreds of millions of dollars?)

The tax angle: Court documents show that Frank made $1.278 billion on the sale. His lawyers say he has paid more than $460 million in state and federal taxes on the sale.

If you’re keeping score at home, that’s a combined federal-and-state tax rate of about 36%, or roughly the same percentage that a single person in California would have to pay on ordinary taxable income of more than $90,000.

When a candidate says what he really thinks . . . that’s news

“…who believe that they are entitled to health care, to food, to housing, to you-name-it.”

Wow. Won’t spend a lot of time on this, because it’s only been the #1 story of the week. Absolutely chilling to hear the world view of a man who believes that 47% of us are freeloaders. If you make too little to have an income tax bill–but you’re still paying Social Security, Medicare and other taxes–Mitt’s not going to lose any sleep over you.

As The New York Times said today,
“Mr. Romney has been trying to incite the anger of a small slice of the richest Americans who need no government assistance but get it anyway, against the working poor, older Americans, the disabled workers and veterans, and even a significant chunk of middle-class Americans.”

How amazing is it hearing what Romney says when he thinks only his friends are listening? Let’s just say I never thought I’d be linking in this blog to a political commentary by conservative favorite David Brooks.

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Pulitzer Prize for tax series from New York Times

Is the tax code deep, dark, confusing and unfair? Sure it is. Can you get a good story out of it? How about a series of stories good enough to win a Pulitzer Prize?

new york times 150x150 Pulitzer Prize for tax series from New York TimesAll hail David Kocieniewski, who waded shoulder-deep into the U.S. tax system and came out with a stunning group of stories for The New York Times about how corporations and the wealthiest Americans are able to dramatically and legally slash their taxes. His series, “But Nobody Pays That”, has won the 2012 Pulitzer Prize for explanatory journalism.

Here’s a link to a list of all the 2012 Pulitzer Prize winners (you can also access many of the winning pieces directly from the article). It’s a tour of the best of American journalism.

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How could any American patriot not love vote-by-mail?

By October 20, I’d already cast my vote in November’s special election in Oregon to replace disgraced congressman David Wu (D). Voting took just a few minutes and consumed no gasoline, parking spots or time away from work.

The reason: this election—like every election in Oregon—was strictly vote-by-mail. It’s been like that here for years.

voting How could any American patriot not love vote by mail?Vote-by-mail is secure, safe, gives people time to consider their ballot, and increases voter turnout. In 2008 more than 80% of registered Oregon voters cast ballots. Since vote-by-mail was adopted, turnout in Oregon is always among the nation’s highest.

Because of those kinds of numbers, the Republican party hates hates HATES vote-by-mail.

In fact, the GOP is generally opposed to anything that makes it easier for folks to vote. After all, there are only so many upper-income people—the natural Republican constituency and, these days, the group that Republicans in Washington cater to. The more people who can vote, the more likely those voters will be, you know … lower-income. Working-class. Poor. Not Republican.

So around the country, Republican-backed initiatives—falsely characterized as aimed at reducing voter fraud–are trying, and in some cases succeeding, at changing voting laws in ways that will suppress voter turnout. Restrictions are being placed on how soon in advance of election day people can cast votes. Several states may require that people present government-issued photo identification in order to vote—tough luck for anyone who doesn’t have a driver’s license, the major form of government-issued ID. Other rules would make voting tougher for college students and anyone else who has moved recently. Officials are even looking at reducing the number of voting locations and voting machines. Remember the scenes in 2008 that looked like some third-world country just beginning an experiment with democracy, of Americans waiting in serpentine lines for hours to exercise their right to vote? That may wind up looking like a practice run for what we’ll see in 2012.

And let’s not even talk about the idiocy of scheduling voting for Tuesdays — a working day for most people — or the complete refusal by the political establishment to consider a two-day voting “day” on the weekend. (The whole idea of registering to vote adds yet another barrier to voting. In Australia, where all eligible voters are automatically registered, folks who don’t vote pay a fine.)

Don’t forget the perennial favorite for politicians who want to disenfranchise whole blocks of Americans: state laws making it illegal for anyone convicted of a felony to vote, even after the individual has served their time and paid their debt to society.

If politicians really want to be sure that a ballots are honestly and legally cast, I have the solution: Make vote-by-mail the nationwide standard. Authorities will have plenty of time to review any questionable ballots and compare signatures with the registration rolls. No threats of mistaken identity; no Dead Men Voting. No intimidation near the polls by people trying to prevent voting, as, sadly and unbelievably, still happens in some parts of the country. In Oregon, the county clerks start authenticating ballots (but not counting votes) as soon as the ballots arrive at their offices, with observers from both parties present to monitor the proceedings. They’ll even give you a call if they have any question about your signature or registration.

The only losers might be television reporters who will lose their standard-issue Election Day background of people waiting at the polls. Democracy definitely wins.

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