Thanks to the stimulus bill Obama signed, Billionaire Paul Allen will be as much as a billion dollars richer.
Billionaire Paul Allen is a Microsoft cofounder, the owner of the NFL’s Seattle Seahawks and the owner of the NBA’s Portland Trailblazers.
And, thanks to the stimulus bill President Obama signed this week, he’s also about to be as much as a billion dollars richer.
Here’s how:
Allen owns a majority stake in cable provider Charter Communications
Charter Communications this month said it would reduce its debt load by $8 billion and enter Chapter 11.
Normally, partners at a firm like Charter Communications would have to pay taxes on the amount of debt forgiven in this process, which is, in a sense a one-time income windfall. Tax law calls it a “deemed distribution.”
But under the new bill, companies like Charter Communications will be able to avoid paying taxes on forgiven debt until 2014. Even then, Paul will have until 2018 to pay it completely off.
Paul owns about half of Charter, so his share of the Charter Commuincations’ $8 billion debt forgiveness is around $4 billion. At a tax rate of 25%, Allen could avoid paying as much as $1 billion in taxes until 2014 Read More
Your tax money at work in the form of the Obama (spending) stimulus bill. Was not Obama against President Bush’s tax breaks to big companies? What have you to say about this America?
LINKS:
(1) Top Democrat accuses anti-stimulus GOP governors of…RAAAAACISM!
Out of the past, some THOUGHTS on porkulus and mortgage relief.
And, from Federalist No 62, by James Madison (or maybe Alexander Hamilton)
It will be of little avail to the people that the laws are made by men of their own choice if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood; if they be repealed or revised before they are promulgated, or undergo such incessant changes that no man who knows what the law is today can guess what it will be tomorrow. Law is defined to be a rule of action; but how can that be a rule which is little known, and less fixed?
The Old Guys understood the danger of rule by children.