Herbert, Harry & Dwight

[mngundog]

So net income is 17 mil. Leased at the carrying cost of the loan for a 7 mil loss. I'll take your word that the 7 mil can be deducted from one year's income tax. By my math, that leaves 10 mil. What other capital assets did this person expense off to get rid of the taxes on the 10 mil? Your example earlier indicated that a significant number of people (at least all of your clients) don't pay tax at all because they expense everything off with capital expenditures. How did this person get from 17 mil to zero? And how can they do it year after year? I'm trying to figure it out because I'm getting ready to write a check to the IRS.

As fair as deductions go, I absolutely believe that we should eliminate them all. For everyone. All deductions do is allow politicians to buy votes and manipulate our behavior. No child deductions, mortgage interest expense, no EIC, nothing. Set a flat rate and let everyone pay their "fair share". Do away with the deductions and let everyone pay in, and 10 or 15 percent will probably do the trick. If that isn't "fair", then start at 7 percent and roll up to 20 for the top earners. That way it's simple, everyone understands it and we don't have to worry about tax returns and all that garbage.
Or we can repeal the 16th Amendment and institute the Fairtax. That's the best plan of all. And on a completely separate note, while we're at it, we can repeal the 17th Amendment, as well.
Now I could be completely wrong about all this. I checked in the closet and couldn't find my "BIG BOY PANTS". I'll try to go shopping this weekend.

I think you have it wrong, the guy had a $17 mill Net income that he would have had to pay taxes on, he guys buys a heli for $24 mill that through a loophole can be deducted in full in one year. So now the guy has a $24 mill heli and a loss of $7 mill that year.

[Matt McKenzie]

I think you have it wrong, the guy had a $17 mill Net income that he would have had to pay taxes on, he guys buys a heli for $24 mill that through a loophole can be deducted in full in one year. So now the guy has a $24 mill heli and a loss of $7 mill that year.

Is that GAAP?

[Matt McKenzie]

Is that GAAP?

Evidently those who know so much about tax deductions don't know what GAAP is.

[Matt McKenzie]

http://money.cnn.com/2012/04/09/pf/t...source=cnn_bin

More on taxes from that extreme right-wing rag, CNN. But facts aren't welcome to the "eat the rich" lefties.

[Matt McKenzie]

http://money.cnn.com/2011/05/09/pf/t...dex.htm?iid=EL

More data on all those millionaires that pay no tax.