Where's my pitchfork?If
this story in the New York Times about how the Blackstone group will get richer
by getting back more from the IRS than they pay in, then nothing will. Check this up, largely, to Bush's reduction in the cap gains rate.
posted by Quiddity at 7/13/2007 05:42:00 AM
Incidentally, I don't think this story is right. They say that Blackstone is paying $553 million in tax, but will have a $751 million deduction. If this truly is a deduction, that doesn't mean they get back $751M- a deduction is not a credit (although possibly the NYT meant to say credit, in which case this is obscene.) To figure out your credit on a deduction, you multiply your deduction by your tax rate (15% in this case), which means they'll get back $113M, meaning they'll still pay $440M.
A 12% tax rate on a $3.7B profit is still ridiculous, but not as obscene as the government paying them to make money.
