(Reprise article)
Having worked in LA and around famous folks, that was a line I heard dozens of times. Two of Hollywood’s elite, Wesley Snipes and Britney Spears are in hot water for leaving the check to someone else. For once Paris Hilton and her “difficulty in making friends” rant last week will be left where it belongs.
You pay your taxes every year, dutifully file those onerous and confusing returns, sometimes even pay an accountant to do it for you because they, in theory know a bit about this. Wesley Snipes seems an intelligent and articulate guy. He’s a successful actor having earned in base salasry before points for Blade: Trinity (2004) $13,000,000, Murder at 1600 (1997) $10,000,000, The Fan (1996) $7,000,000, Money Train (1995) $5,500,000 and Drop Zone (1994) $7,000,000 to name a few.
Now, when people earn that kind of money they have staff (not the entourage) and advisors to handle money issues. One of the most important is making sure you pay the taxes due or ensure you have so many hedge investments to shelter income so the tax bite is small that you put as much in your pocket to maintain your lifestyle. Indeed Federal Judge Learned Hand in a 1935 decision wrote “anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one’s taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands.”
Snipes just fogot the “the law demands” part and did not file ANY returns for three years, Yesterday he was sentenced to 3 years in prison and already has a $5 million dollar fine to pay as well as back taxes.
How in the world does this happen? He clearly has an agent/lawyer who negotiates his movie deals. How does one not pay any tax or have such poor math skills that they think they only owe $228,000 of tax on $13.7 million dollars of income (a miserly 1.66% of their income for those keeping score)?
Poor Britney’s had it bad as well. Her rather public meltdown has not been pleasant to watch, especially for her young children and yet she continues to court the paparazzi at every turn to… remain relevant? Who knows? She’s been fighting her ex-husband for visitation and custody of their children and ran up legal bills of $372,500. Here is another mega millionaire performer refusing to pay her bill and was finally ordered to by a court.
How does this happen? Now admittedly, her Dad and a lawyer must give permission for any money to be paid since they have temporary control over her assets because of her hospitalisation twice in January, but how crazy is it that $372,500 goes unpaid? It’s not like it was her life savings rainy day fund.
When someone commits an driving offence they have the choice (in some cases) to go back to driving refresher school so the points on their licence are held in suspension or waived. Wouldn’t it be great if there was an entry level fiscal and personal responsibility course for all actors and musicians when they make their first $100,000 dollars?
I’d even make the first donation to start the school so we stop seeing headlines in stupidity. I’ve scatched my head so hard trying to figure this out I drew blood.
