When it comes to politics, George Soros is known as one of the most well-known progressive-liberal backers in the United States. With billions of dollars to his name, the Inquisitr previously reported on Soros’ past endeavors in support of the Democratic Party, such as him giving an estimated $2 million to them one year. Later on, Soros’ would show his support yet again by giving an extra $1 million, not to just any Democratic endeavor, but to the Democratic Super PAC.
Though his allegiance to progressive-liberal causes are monumentally known, those who truly follow George Soros do so for being a business magnate, investor, and fund manager. These professional monikers seem like worthwhile details on Soros’ resume, but to economists, it is not. Soros is universally known as a man who makes billions manipulating currencies. As a matter of fact, Soros is known as “The Man Who Broke the Bank of England” because he short-sold $10 million worth of British pounds thus giving him a profit of $1 billion during the 1992 Black Wednesday Currency Crisis.
In short, George Soros is known for exploiting the system for his own means. But now, his past actions may have caught up to him as Soros will reportedly have to pay $7 billion in taxes after delaying payment for years.
According to Fox News, George Soros will soon face a monumental tax bill of $7 billion after years of messing about with the Internal Revenue Service (IRS). What is peculiar about Soros’ IRS tax dance is that he’s been advocating that the wealthy should pay higher taxes for many years. How ironic that George Soros would support such, but dodge paying his own.
The question that needs to be asked is how George Soros was able to avoid paying taxes up to the point that it grew to $7 billion? The answer comes from a loophole to defer taxes on client fees. Bloomberg reports that Soros’ taxes were reinvested into his own hedge fund which grew tax-free. Through this method, Soros has made an estimated $13.3 billion as shown to Irish regulatory filings. As for the $7 billion tax bill, it was estimated by one tax expert who used various tax rates. It should also be reported that George Soros utilized this loophole more so with offshore funds to avoid negative tax implications on clients.
Apparently, the U.S. Congress closed the loophole back in 2008. This forced George Soros to move assets to Ireland (thus why Irish regulatory filings were cited), right before the closing was officially enforced, possibly as a shelter from the law.
As of now, George Soros has until 2017 to pay his tax bill. Such a bill is chump change for Soros since his net worth, as of April 28 of this year, is $28.8 billion. Seven-billion dollars, or even the more precise estimate of $6.7 billion, shouldn’t be a problem. The question that matters now is if George Soros will actually pay it, or if he knows of another loophole he can possibly exploit.
[Featured Image via Alex Wong/Getty, Post Image via Bloomberg]