Surprise. Crafty tax lawyers for the extremely wealthy have found further loopholes to keep the elite from paying their fair share. Read it and weep for yourself. Of course, that shitbird in the Whitehouse goes making the long face for estate tax abolition and huge tax cuts for the wealthy. From the NyTimes:
Through a technique invented by a lawyer in New York and a chemical engineer in California, each dollar spent on this insurance can typically eliminate $9 in taxes. Spend $10 million on this insurance, avoid $90 million or more in income, gift, generation-skipping and estate taxes.
“I’m not saying this is the best thing since sliced bread, but it’s really good for pushing wealth forward tax free,” said Jonathan G. Blattmachr, the New York lawyer who heads the estate tax department at Milbank, Tweed, Hadley & McCloy and who explained the plan in a half-dozen interviews.
The technique is legal, blessed by the I.R.S. in 1996. But some leading estate tax lawyers, as well as some accountants and insurance agents, say it shouldn’t be. They say it effectively disguises a gift to one’s heirs that should be taxed like any other gift involving millions in wealth. They also say it is but one example of how a tax exemption on life insurance that was approved by Congress in 1913 to help widows and orphans has been stretched to benefit the very richest Americans.
Several thousand of these jumbo policies have been sold, according to agents who sell them, all under confidentiality agreements with the buyers and their advisors. One member of the Rockefeller family took out a policy, according to people who have seen documents in the deal.