{"id":199572,"date":"2007-07-13T13:36:00","date_gmt":"2007-07-13T18:36:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/07\/13\/please-someone-lock-these-people-up-with-leona-helmsley\/"},"modified":"2007-07-13T13:36:00","modified_gmt":"2007-07-13T18:36:00","slug":"please-someone-lock-these-people-up-with-leona-helmsley","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/07\/13\/please-someone-lock-these-people-up-with-leona-helmsley\/","title":{"rendered":"Please, Someone Lock These People Up With Leona Helmsley"},"content":{"rendered":"<p>It appears that <a href=\"http:\/\/money.cnn.com\/2007\/07\/13\/news\/companies\/blackstone_taxes\/index.htm\">Blackstone partners may avoid taxes on their IPO profits completely.<\/a><\/p>\n<p>Here is the short form:<\/p>\n<blockquote><p>.<span style=\"color: rgb(0, 0, 153);\">..<\/span><br \/><span style=\"color: rgb(0, 0, 153);\">The paper says that of the $4.75 billion raised by the Blackstone IPO, the firm attributed $3.7 billion to good will, an accounting term that estimates the value of the intangible assets rather than tangible assets such as buildings and equipment owned by the firm.<\/span><\/p>\n<p><span style=\"color: rgb(0, 0, 153);\">That $3.7 billion is taxed at a 15 percent tax rate used for capital gains, meaning that the firms&#8217; partners had to pay taxes of $553 million on their gain.<\/span><\/p>\n<p><span style=\"color: rgb(0, 0, 153);\">But by transferring that good will to a new corporate structure, the firm is able to deduct that $3.7 billion as a business expense at a 35 percent tax rate, reducing taxes by $1.3 billion over a 15-year period, according to the report.<\/span><\/p>\n<p><span style=\"color: rgb(0, 0, 153);\">The Times reports that under terms of the IPO, the Blackstone partners are entitled to 85 percent of those tax savings, or $1.1 billion. They are also able to account for those savings as a lump sum, when adjusting for the current value of those savings over the next 15 years. That brings current tax savings to $751 million, or $198 more than they had been required to pay in taxes on the $3.7 billion gain seen from the IPO.<\/span><br \/><span style=\"color: rgb(0, 0, 153);\">&#8230;<\/span><\/p><\/blockquote>\n<p>Damn!!!  It&#8217;s enough to make one a Marxist.<\/p>\n<p>Truth is, I am, but Groucho, Chico, Harpo, Zeppo, and Gummo, not Karl.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It appears that Blackstone partners may avoid taxes on their IPO profits completely. Here is the short form: &#8230;The paper says that of the $4.75 billion raised by the Blackstone IPO, the firm attributed $3.7 billion to good will, an accounting term that estimates the value of the intangible assets rather than tangible assets such &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1005,970,973,978],"tags":[],"class_list":["post-199572","post","type-post","status-publish","format-standard","hentry","category-business","category-corruption","category-economy","category-politics"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199572"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=199572"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199572\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=199572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=199572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=199572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}