Jump to content



Photo
- - - - -

Paulson Said to Explore Puerto Rico as Home With Low Tax


  • Please log in to reply
11 replies to this topic

#1 TEO

TEO

    VibeGuide

  • VibeGuide
  • 22,700 posts

Posted 13 March 2013 - 08:31 PM

John Paulson, a lifelong New Yorker, is exploring a move to Puerto Rico, where a new law would eliminate taxes on gains from the $9.5 billion he has invested in his own hedge funds, according to four people who have spoken to him about a possible relocation.

Paulson, 57, recently looked at real estate in the exclusive Condado neighborhood of San Juan, where an 8,379- square-foot penthouse, complete with six underground parking spaces, lists for $5 million. Photographer: Fred R. Conrad/The New York Times via Redux

Playa del Condada, in San Juan, Puerto Rico. Photographer: Christian Heeb/laif/Redux

Ten wealthy Americans have already taken advantage of the year-old Puerto Rican law that lets new residents pay no local or U.S. federal taxes on capital gains, according to Alberto Baco Bague, Secretary of Economic Development and Commerce of Puerto Rico. The marginal tax rate for affluent New Yorkers can exceed 50 percent on ordinary income.

Paulson, 57, recently looked at real estate in the exclusive Condado neighborhood of San Juan, where an 8,379- square-foot penthouse, complete with six underground parking spaces, lists for $5 million. The area is home to St. John’s School, a private English-language academy where he and his wife could send their two children, said the people, who asked not to be named because the discussions were private.

Paulson’s firm declined to comment on his personal plans.

“While we have looked at real estate investments in Puerto Rico, we have not made any investments,” Paulson & Co. said in a statement. The firm is one of the largest holders of Popular Inc., which owns the biggest lender in Puerto Rico, and it runs a $300 million real estate fund that has properties in Florida,NevadaArizonaCalifornia, Colorado and Hawaii.

Unusual Choice

John Paulson hasn’t decided whether to move and may opt to stay in New York, the people said. His firm would remain in New York.

Wealthy individuals in the U.S. and Europe are relocating as governments raise taxes on top earners to shrink budget deficits that have become unsustainable after the 2007-2009 financial crisis. Actor Gerard Depardieu left France last year for Belgium and billionaire Bernard Arnault, who runs LVMH Moet Hennessy Louis Vuitton SA (MC), applied for Belgian nationality, after President Francois Hollande sought to introduce a 75 percent tax on millionaires.

BlueCrest Capital Management Ltd. and Brevan Howard Asset Management LLP opened or expanded offices in Switzerland in the past three years after Britain raised taxes on the wealthy.

Paulson executives, too, have already taken steps that may allow them to pay lower taxes. Last year, they put about $450 million into a new Bermuda reinsurance company that in turn invested all of its assets in Paulson & Co. funds. The structure positions them to defer any taxes on investment income from the funds for years, and to pay only the lower capital gains rate when they do.

Occupy Visit

Moving to a Caribbean island four hours by plane from New York City would be an unusual choice for Paulson. He grew up in Queens and graduated from New York University. He’s worked in Manhattan for the last three decades and last year donated $100 million to help conserve Central Park, steps from his six-story townhouse.

In October 2011, when Occupy Wall Street protesters marched by the homes of Manhattan’s billionaires, Paulson chided them by pointing out his loyalty to the city.

 

http://www.bloomberg...th-low-tax.html



#2 seany

seany
  • VibeTribe
  • 7,770 posts

Posted 13 March 2013 - 08:44 PM

My feeling on it is that if he decides to actually move and sever his U.S, ties and income raising ability and he gets some one-time tax benefit from it, then good for him.  If you move offshore and still do business here for a living, then you should pay tax here.



#3 melissaphish

melissaphish
  • VibeTribe
  • 1,846 posts
  • LocationHawleyville, MA

Posted 13 March 2013 - 08:56 PM

Didn't PR just petition for statehood?



#4 TakeAStepBack

TakeAStepBack
  • VibeTribe
  • 18,472 posts

Posted 13 March 2013 - 10:33 PM

Taxation is theft. I would look to avoid robbery too.



#5 Tim the Beek

Tim the Beek
  • VibeTribe
  • 15,941 posts

Posted 13 March 2013 - 11:26 PM

I have no love for Paulson and his ilk...they aren't really capitalists, in my opinion, and represent some bastardized idea of what economics once was.

 

That said, it sounds like the move is a no brainer...



#6 seany

seany
  • VibeTribe
  • 7,770 posts

Posted 14 March 2013 - 12:12 AM

Taxation is theft. I would look to avoid robbery too.

 

You're not helpless in this, you know. You could move somewhere other than one of the most highly taxed places in the country. There's places like NH where you can still get a job doing what you're doing and you can "live free and die" and shoot all the guns you want. Or you can move out of the states altogether, because I'm guessing that "taxation is theft" ideal you have is not going to catch on or pass legal muster ;)



#7 Tim the Beek

Tim the Beek
  • VibeTribe
  • 15,941 posts

Posted 14 March 2013 - 12:23 AM

You're not helpless in this, you know. You could move somewhere other than one of the most highly taxed places in the country. There's places like NH where you can still get a job doing what you're doing and you can "live free and die" and shoot all the guns you want. Or you can move out of the states altogether, because I'm guessing that "taxation is theft" ideal you have is not going to catch on or pass legal muster ;)

 

Pretty sure what he was writing was supporting the idea of moving from an area of high taxation, so I'm not sure what the reason is for the above...



#8 seany

seany
  • VibeTribe
  • 7,770 posts

Posted 14 March 2013 - 12:52 AM

My point was that he could have just said, "hey, if I had the means to avoid taxes, I would too."  Instead, it's always "taxation is theft" which is a fine opinion, but not one upheld by general consensus or courts.  It's always the blunt hammer. There's plenty of veggies on the board, but you don't weigh in with "Meat is Murder!" every time bacon is brought up.  

 

Sorry. I'm not in a great mood tonight so it probably irked me more than it should. :/



#9 concert andy

concert andy
  • VibeTribe
  • 10,697 posts
  • LocationPhilly

Posted 14 March 2013 - 01:36 AM

Taxation is theft. I would look to avoid robbery too.

 

Delaware'd

 

Grand Cayman'd

 

Switzerland'd



#10 TakeAStepBack

TakeAStepBack
  • VibeTribe
  • 18,472 posts

Posted 14 March 2013 - 11:25 AM

You're not helpless in this, you know. You could move somewhere other than one of the most highly taxed places in the country. There's places like NH where you can still get a job doing what you're doing and you can "live free and die" and shoot all the guns you want. Or you can move out of the states altogether, because I'm guessing that "taxation is theft" ideal you have is not going to catch on or pass legal muster ;)

 

Grumpy-Cat-Says-No.jpg



#11 TakeAStepBack

TakeAStepBack
  • VibeTribe
  • 18,472 posts

Posted 14 March 2013 - 11:26 AM

I have no love for Paulson and his ilk...they aren't really capitalists, in my opinion, and represent some bastardized idea of economics once was.

 

That said, it sounds like the move is a no brainer...

 

While I agree, this is the system created, so "bastardizing" it for ones advantage is expected. There isn't much about our system that involves capitalism.



#12 TEO

TEO

    VibeGuide

  • VibeGuide
  • 22,700 posts

Posted 14 March 2013 - 12:55 PM

Helps to have capital, although not necessary.    :grin: