He’s talking about taxing hedge funds types who make MILLIONS of dollars a year and pay less in taxes than the average American... could be percentage... Anyhow it’s NOT like the dems who talk about ‘taxing the rich’ and they really mean the middle class. In Trump’s world ‘rich’ means ‘rich beyond imagination’ for most of us... Rich like we’ve never met people with that much money... Basically Trumps taking RICH LIBERAL ELITES... then he’s still tilting somewhat toward a flat tax...
Exactly!
Over the past decade, hedge funds owned by John Paulson, David Einhorn, Daniel Loeb, and many more have created shell companies with headquarters in corporate tax havens like the Cayman Islands or Bermuda, which typically have few or no employees and cost next to nothing to operate. These shell companies are allegedly reinsurers, or insurance companies for insurance companies, taking in premiums and backstopping large catastrophic events. When not paying out claims, reinsurers invest their reserves. But in this case, the lion’s share of the reinsurers’ capital comes not from insurance company premiums, but from the hedge funds that created them.
To use one example, in 2012, Paulson & Co. transferred $450 million into its reinsurer, Pacre Ltd., which has no employees. Almost all of Pacre’s assets were invested back into Paulson’s hedge fund. So it’s like a perfect circle: The money goes from the hedge fund to the reinsurer, and back into the hedge fund. This allows John Paulson and his top executives to defer taxation until the investment gets sold. At that point, they pay taxes only on capital gains rather than on income.
http://prospect.org/article/irs-will-close-tax-loophole-unless-wall-street-gets-its-way