Oh For Fuck\’s Sake Will!

Jesu Christe and Good God Almighty. How on earth does this man get regarded as an expert on the economy? Will Hutton:

And there is Bruce Wasserstein, the larger-than-life, extravagantly rich current CEO, who now lives in London to escape even the US\’s minimal taxes.

He\’s a US citizen. Thus he pays US taxes. The US is unique in this regard, that you do not escape their minimal taxes (which, in NYC at least, are not minimal, they\’re higher than the UK…when you add Federal to State and City income taxes they\’re over 50%) by moving abroad. You still cough up to Uncle Sam what you would if you lived in the US (barring some minor adjustments fo amounts under $100,000 or so, which certainly aren\’t going to bother someone like Wasserstein).

Not knowing that simple and basic fact really rather makes anything else Hutton has to say on the subject a little suspect, doesn\’t it?

4 comments on “Oh For Fuck\’s Sake Will!

  1. Well I have the disadvantage of having met and had dinner with Mr Hutton. I have no idea how someone of such limited range is regarded as an expert on anything. A nice chap though. Sound. Unlikely to have an original opinion on much. Should be running Kenya or something.

    The disappointing this is that he smears them repeatedly (and why do we care if they are all Jews by the way?) but he gives no details. There’s no shock value in being told they are horrible people. We want details. We want to know about the hookers, the cocaine snorted off naked cheer leaders, the parties, the m0ney thrown around like it is water. And what does Mr Hutton give us? Some guy has a piece of modern art above his bed. Come on Will, you can do better.

    By the way, speaking of the arrogance of great money wasn’t it a Japanese businessman, you know those people who do not do massive take over deals and invest in their factory serfs, who wanted to be cremated with his Monets, his Van Gogh and some emeralds?

  2. Tim:

    You may be right but maybe not. These thing change from time to time. From memory, during most of my life, you’d’ve escaped U.S. income tax if you were absent from the U.S. for a certain length of time during which you didn’t re-enter the U.S. for a stay of more than a certain number of days. (might’ve been a stipulation that the income was subject to some place’s taxation–dunno). States and cities that tax may be even more grasping; recall that they got Bush Sr. for a nice pile because of the Kennebunkport (Maine) place at which he spent a good deal of time, despite being a long-time (though not native) Texan with an established residence in Houston. (Texas is still one of the states without an income tax, by the way.)

  3. As far as I know, the US is the only country in the world to double tax its citizens. Even if a US citizen pays the brutal taxes in a country in Europe they still have to pay US tax on amounts over 80,000$ . This rule was made even more severe in 2006.

    With astonishing trade deficits, it seems a strange idea to beat like rented mules the very people most active in evening out this situation, but there it is.

    Do possible not the best and the brightest in GB write for the Guardian?

    Tiom adds: It’s not quite that bad, you can deduct foreign taxes paid from your US tax bill….

  4. gene – -I think Tim’s right about this. The 335 day rule (or whatever it is) allows you to be exempt from taxes on the first $100,000 or so of income, which Tim mentions. For most of us, that’s all our income, so we experience it as being a full exemption, but the rich don’t. However, absence will buy him exemption from NY State’s relatively high income taxes — he just doesn’t have to file with NY State. I presume he is exempt from UK income taxes, but that’s irrelevant, because he could just deduct them from US taxes (I’m all but certain that David VV is wrong about this). A better point than Hutton’s would have been that by taxing Wasserstein as a UK resident the Inland Revenue would not be making him at all worse off, but would be generating a good deal of revenue.

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