You have to be rich not to pay taxes….Our politicians have been bought by the elite rich

In an earlier post I detailed how last year you paid more income taxes than ExxonMobil, Bank of America, and General Electric combined, even though they made billions of dollars in 2009!  In fact, Bank of America and General Electric received billions of dollars in tax refunds and credits last year.

But the rich and powerful not only receive mega income tax breaks but also property tax breaks.  Yankee baseball player, Alex Rodriguez, will only pay $1,200 per year on a luxury condo on the Upper West Side of Manhattan when the customary real estate tax would be $60,000 for property with a fair market value of $6 million!  Is this tax equity in our laws?  A $33 million per year baseball player only pays $100 per month of real estate taxes on a $6 million condo in the plushest of areas of Manhattan?!  When will the American taxpayers awake from their catatonic stupor and tar and feather all of these crooks in Congress, the White House, City Hall, Governor’s mansions, state legislatures, mayors’ offices, and municipal councils?

In this particular instance, how does Alex the $33 million man get away with paying less real estate property taxes than you?  Needless to say, the local politicians of New York City inserted a little tax loophole called the section 421A program, which grants as much as a 98% percent tax abatement for up to 25 years to condo owners in newly built housing.  But since land values are extraordinarily high in Manhattan, anything newly constructed would need to be luxury in order to be economically feasible. Smart, huh?  Those crafty demons. 

It is estimated that this one more tax cut for the rich costs the City of New York as much as $1 billion every year!  And A-Rod pays virtually no real estate taxes while the middle class gets hammered with real estate taxes in Manhattan and elsewhere.  LOL!

Isn’t America a great country?  If you’re rich, that is.

Barefoot Accountant

About William Brighenti

William Brighenti is a Certified Public Accountant, Certified QuickBooks ProAdvisor, and Certified Business Valuation Analyst. Bill began his career in public accounting in 1979. Since then he has worked at various public accounting firms throughout Connecticut. Bill received a Master of Science in Professional Accounting degree from the University of Hartford, after attending the University of Connecticut and Central Connecticut State University for his Bachelor of Arts and Master of Arts degrees. He subsequently attended Purdue University for doctoral studies in Accounting and Quantitative Methods in Business. Bill has instructed graduate and undergraduate courses in Accounting, Auditing, and other subjects at the University of Hartford, Central Connecticut State University, Hartford State Technical College, and Purdue University. He also taught GMAT and CPA Exam Review Classes at the Stanley H. Kaplan Educational Center and at Person-Wolinsky, and is certified to teach trade-related subjects at Connecticut Vocational Technical Schools. His articles on tax and accounting have been published in several professional journals throughout the country as well as on several accounting websites. William was born and raised in New Britain, Connecticut, and served on the City's Board of Finance and Taxation as well as its City Plan Commission. In addition to the blog, Accounting and Taxes Simplified, Bill writes a blog, "The Barefoot Accountant", for the Accounting Web, a Sift Media publication.
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