Sunday, October 26, 2014

The Billion Dollar Tax Loophole That Came Along with Steve Ballmer's Purchase of the Los Angeles Clippers

I am not against tax loopholes. I subscribe to Ludwig von Mises' observation that “Capitalism breathes through those loopholes.” (SEE: What Ludwig von Mises Taught Gottfried Haberler Who Taught Paul Samuelson about Tax Loopholes). However, I do note that it seems that there are plenty more loopholes for billionaires than thousandaires.

Steve Ballmer stands to gain about $1bn in tax benefits as a result of his $2bn purchase of the Los Angeles Clippers basketball team, reports FT.

An FT analysis of US tax laws shows that Ballmer could claim about half of the purchase price as tax credits over the next 15 years against his taxable income. The credits can be claimed under a little-known feature of the tax code covering so-called active owners of sports franchises.


  1. "However, I do note that it seems that there are plenty more loopholes for billionaires than thousandaires."

    ...and that is the most likely reason for the backlash against wealthy people by a good % of the population.

    They see the advantages those with wealth get in paying off pols, in both business and tax breaks they can't get, and naturally harbor resentment.

    I've never been sure that the wealth inequality was as much an issue for Joe Sixpack as much as the notion that they have trouble getting any loopholes themselves and need every extra dollar they can keep. They might not be able to articulate it that way, but it's seems to be simmering underneath all the "eat the rich" rhetoric.

  2. Go Steve! Much better that the money goes to voluntary use rather than mulcted and sent to political entrepreneurs...