HHS Secretary Finds Loophole, Drives Truck Through It.

Published on August 3rd, 2006

Sharp Operator

HHS Secretary’s Fund Gave Little to Charity — Wow! Read this whole thing! What a great scam. Make this guy the Secretary of Defense, maybe he can figure some way of getting us out of Iraq.

Health and Human Services Secretary Mike Leavitt and his relatives have claimed millions of dollars in tax deductions through a type of charitable foundation they created that until recently paid out very little in actual charity, tax records show.

Instead, much of the foundation’s money has been invested or lent to the family’s business interests and real estate holdings, or contributed to the Leavitt family genealogical society.

The Leavitts used nearly $9 million of their assets to set up the foundation in 2000 under an obscure provision of the federal tax code

While some will be aghast, as far as I’m concerned the guy is a genius. Another reason for the flat tax.

found by Marc Perkel

15 users responded in " HHS Secretary Finds Loophole, Drives Truck Through It. "

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# 1 Calin said, on August 3rd, 2006 at 8:24 am

Amen……our tax code needs changed immensely.

Personally, I like the Fair Tax system that Boortz has been pushing.

# 2 Improbus said, on August 3rd, 2006 at 8:31 am

You don’t expect the rich, powerful or connected people to pay taxes do you? Silly rabbit.

# 3 James Hill said, on August 3rd, 2006 at 8:53 am

No, I expect them to take the time to learn the rules and bend them to their benefit… which is what Leavitt did.

Conveniently, Leavitt’s wife has been a guest host on the show my wife runs a few times, and Leavitt himself has been a guest. They’re both nice people, and too mormon for their own good: They’re certainly not rule breakers.

The odd part is that he won’t get any negative press for this in Utah because he did a great job as governor. Besides, the 10% off the top of every check he earns going to “the church” heals a lot of wounds.

As an aisde, the new governor of Utah come from an even richer family that actually does charity work. Go figure.

# 4 Angel H. Wong said, on August 3rd, 2006 at 8:54 am

I wonder if this guy had any experience by working in the American Red Cross…

# 5 Air Phloo said, on August 3rd, 2006 at 10:22 am

The article was picked up by the Salt Lake Tribune and actually made him out to look worse thant the Washington Post story.

I don’t know many people with money who don’t feel that they should take advantage of every tax break they can. There just aren’t a lot of folks in a position to do what the Leavitts did.

By the way, I also know Mike Leavitt personally and professionally and I have to say, this little tax issue aside, he is the greatest – and I am not a Republican.

# 6 Kevin said, on August 3rd, 2006 at 10:44 am

He beat the system – sort of.

He won round one with the tax man. Round two will be with the Appeals Courts, or with Congress who will try to legislate a correction. Round three will be public opinion, which will paint him as a “system gamer”.

He will be in demand as a lobbiest, if not in his current job. He may even be asked to fix the tax code.

# 7 Max said, on August 3rd, 2006 at 10:54 am

I wish I was that smart…

Flat tax for all!

15% of nothing is NOTHING! Set the lower limit at the poverty level, and let the rest of us have at it. If you don’t think you’re paying enough in taxes? Well, then donate more!

It would make it a hell of a lot easier for me to plan a family budget if I could know at the beginning of the year that I would never see 15% of my income….

Federal Tax code is silly. It allows for those that have a lot to find a way to keep more of it (which I’m all for, but to spend that much in tax layers and accountants just doesn’t give me the Return on Investment I’m looking for).

I think I’m gonna run for congress and use that as my platform. Vote for Max!

# 8 Geoffrey Knobl said, on August 3rd, 2006 at 11:46 am

Nope. Find him guilty of tax fraud, put him and his friends – especially the ones that helped him get set up (like good ol’ uncle Bush) – in jail for long time.

Make the tax system fair by having the upper 10% of the income earners pay most of the taxes, not the increadibly small amount they pay now – and yes, they do pay very little now. Too many loopholes for them, too much actually paid by the lower levels of income.

Genius – yeah, like a Batman criminal. Stick him where the sun doesn’t shine – in a deep dark dank cell.

# 9 Mr. H. Fusion said, on August 3rd, 2006 at 12:14 pm

What got my attention is the number of people who say Leavett is a great guy. Almost like a mother saying she can’t believe her son did something wrong because he is such a good kid.

# 10 James Hill said, on August 3rd, 2006 at 12:15 pm

Geoffrey, he didn’t break any laws. How would you justify imprisioning him?

# 11 joshua said, on August 3rd, 2006 at 1:12 pm

#8…Geoffrey…..your living in some world of make believe. Who exactly do you think pays most of the income taxes in this country?
This is the IRS breakdown of who pays what and their percetage of share.

The top 1% of tax payers pay 31% of all taxes
The top 5% pay 52% of all taxes
The top 10% pays 70.6% of all taxes

The top 1% earns 15% of the total wages in this country and pay 30% of the taxes.

The income levels for taxes and the share of familiy income taxes in each group………..

Bottom 20% of families earn at least 9000.00 dollars and pay less than 1% of taxes.
low middle 20% earn at least 22,000.00 dollars and pay 3% of taxes
Middle 20% earns 36,000.00 dollars at least and pays 8% of all taxes
Upper middle 20% earns at least 55,000.00 dollars and pays 19% of all takes
Top 20% earns at least 200,000.00 and pays 70% of all taxes

Over 50% of wage earners pay no taxes in this country, meaning that between 40 and 49% are paying for everyone….and 39% of those are paying approximately 80% of all taxes.

So….who you gonna tap to pay your taxes? This classist argument of tax the rich is bull sh*t……the rich already pay almost all the taxes.
The group of those not paying ANY taxes is growing larger each year, but the group that pays the most of the taxes is growing smaller each year….sooner or later there will be no middle class, they will be taxed out of exixtance and either join the no taxes paid group or the lower end of the top 40% group.

# 12 ECA said, on August 3rd, 2006 at 1:51 pm

We need SIMPLE rules for taxation…
For get the 4-6 2″ binders of LAWS and rules.

# 13 JimS said, on August 4th, 2006 at 2:56 am

@11 – joshua

Would you consider adopting me? I’d be willing to sleep in the boathouse, at least during the warm months.
; )

# 14 ECA said, on August 4th, 2006 at 4:56 am

11.
Quote:
Bottom 20% of families earn at least 9000.00 dollars and pay less than 1% of taxes.

BOTTOM 20%??
Do you know according to the Beureu of vital stats, that Over 50% of the US makes min wage or LESS??
And then have to pay 1/3 of that to tax, 1/3 to rent (minimum), then at LEAST $150 per month for food, IF they are working full time..$6per hour x 40 x 4 = about $960 amonth. $300 in taxes + FIND a $300 apartment/house + $150 food, $200 left over for BILLS.
TRY IT, you WONT succeed… Average rent is AROUND $600 per month.

Science trick.
Averages work very well, but a TRUE average works all the way down.
IF you take the top 5% off the top in the Number of persons counted and drop those wages and do the same with the bottom, you will find that the average wage in the US, is CRAP.

# 15 James Hill said, on August 4th, 2006 at 6:55 am

ECA, did you know that anyone trying to justify living on their own (you know, like an adult) on minimum wage is a moron?

Likewise, that 50% average is interesting. One could assume from it that half of Americans are successful, and half are not.

Kinda makes sense, doesn’t it?

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