Senate Takes on Super Rich Tax Cheats

I can’t remember ever seeing such a conflicted time in tax law. Generally, laws are passed with clear objectives. For example, the government wants to stimulate a particular segment of the economy. New laws are enacted to provide great tax breaks for that group.

But now, it seems like laws are at cross purposes. For example, we have plummeted real estate values and it’s pretty much agreed that we need to get prices back up and the economy moving. Yet, at the same time, the IRS has launched an aggressive audit campaign against real estate investors (the very people who could buy these properties to bring values back up) and credit sources have dried up. And, in 4-5 states it’s now illegal to do a stated income loan, effectively taking any real estate investors or self-employed person out of the buying market.

It’s at times like these that there are gaping holes in tax law. And some of the super rich have taken advantage of those holes to create elaborate schemes that have moved trillions of dollars out of the US taxing authority. I stumbled across this very interesting video of a Senate investigation into these tax schemes.

Click through to see the video of Super Rich Tax Cheats