This Man Made $4 Billion Dollars Last Year And Paid Less Taxes Than You

You probably have no clue who the man in the picture is. I am sure that he would like to keep it that way. If you saw him in a restaurant, you wouldn’t know who he is. He is just you regular everyday business type who happened to make $4 billion dollars in salary last year. He is a billionaire and your tax rate was higher than his was last year.

Let me be clear before I get accused of false advertising. While the dollar figure  that billionaire pay in taxes are higher than ours, the tax rates that many billionaires pay are far less than you or I pay. How do billionaires get around paying taxes at the 35% maximum tax rate?

The answer is by working in the right industries.

The richest hedge fund manager in the world is George Soros. Soros has a net worth of $14 billion dollars. John Paulson, CEO of Paulson & Company is worth$12 billion dollars. Third on the list is Carl Icahn with a net worth of $10.5 billion dollars. All of these men have made a fortune due to their talents in the hedge fund industry.

How lucrative is the hedge fund industry?

The top 25 hedge fund managers took home an average salary of $1 billion dollars last year. Yes, you read that right! That’s $1 billion dollars. That’s $2,739,726 a day. This is further proof that I am working in the wrong field! David Tepper was number 1 in earnings last year generating a $4 billion dollar payday. Soros wasn’t far behind at $3.3 billion dollars. James Simons rounds out the top 3 at just $2.5 billion dollars in compensation last year.

Most Americans are unaware of  the fact that hedge fund managers pay 15% in taxes on the bulk of their earnings. Managers typically receive a standard 2 percent advisory fee based on the total value of the fund. This fee is paid at the higher income rate of 35%. They also receive 20 percent of the annual profits.  This is where the bulk of their money is made and it is taxed at the 15 percent capital gains tax rate.

Now you see why hedge funds and private equity firms fought so hard against tax rates going up. It’s not a bad gig if you can get it. During bad years, you are guaranteed your 2% fee and doing good years you get 20% of profits added to that. My only gripe is with the tax rate.

The solution is simple. Either drop all of our tax rates to 15% or increase their tax rates to what the rest of us are paying. Now if you will excuse me I have to look online and see if any hedge funds are hiring.

BTW the guy in the picture is David Tepper. He is the fund manager of Appaloosa Management.

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9 Responses to “This Man Made $4 Billion Dollars Last Year And Paid Less Taxes Than You”

  1. avatar MoneyCone says:

    And having friends in Goldman Sachs helps. Just ask Paulson!

  2. avatar Joe Plemon says:

    Wow. I just got an education. I had no idea that hedge fund managers made so much money, nor did I realize that they pay only 15% taxes on most of their incomes.

    Like you say, it’s not a bad gig if you can get it!

  3. avatar krantcents says:

    This does not surprise me. The more money you make the more you can spend to avoid/defer taxes. I know I did!

  4. avatar rachmawaty says:

    waw/…… perfect… i want to be like you… can you share with me???

  5. avatar Kathryn says:

    All of us could be much richer, in our hearts and souls, and pocketbooks, even if we never become hedge fund managers. We can start an altruistic tax revolution by each of our own transformation of our thoughts, words, and deeds; financially, materially, and socially.

    HEDGE FUND MANAGERS Could Help Improve the World — One Corner at a Time:

    The tax rates would go lower, if government, and We the People did not see certain government services as indispensable.

    It’s a different kind of tax revolution — it’a a tax revolution of the heart and soul.

    If government sees that we don’t need as much of all of their services, but that there are still those that do, then the load would be less, as more financially-blessed people reach out to help build up struggling people.

    Financial envy is a natural mind-set of today’s current era when so many are struggling, from government and mortgage and financial industry, and family, and personal decisions to address the moment rather than acting prudently with an outlook toward the future.

    If people help people, instead of government bureaucracies doing it on so much of our taxes, then, greater personal accountability would be present. Some taxes, still, would be needed for these social programs, but not so much. Who better than HEDGE FUND MANAGERS, to start fully-accountable foundations, scholarships, associations, charities, and the like.

    Countless schools benefited from Bill Gates’ educational technology grants.

    Locals, well-off in their own hometowns, have benefited colleges and universities with building grants, and the like.

    Construction bosses, not as well-off as the higher echelon, nevertheless, have been recently re-developing and resurrecting the old-school entry-to-the-trades-professions through Apprenticeship Programs, by which people can once again, start working their way up the ladder.

    Regardless of the level of each of our own level of tax liability, tax shelters, tax hedges, tax funds, charities, churches, grants, foundations, associations, could all be areas of personally-designated ways to reach out to our own communities, rather than letting The State and the Fed and the Central Banks continue pushing forward ever-more draconian taxes, tax enforcement actions, and the like, against We The People.

    VOLUNTEERISM: Those who have no money, but do have time, can learn to volunteer, and eventually, even get paid for doing it, and thereby, come off the public welfare roles, and lessen the government support burden and give reason for tax rate reductions.

    I have seen people who live downtown in the tent cities clean-up, dress-up, take the busses, and go volunteer in such charities, churches, houses of faith, associations, foundations, and through earnest sustained volunteering efforts, many of those most diligent, have been accepted into these same entities as paid employees who have through this process developed a sense of personal self-esteem, because they were first esteemed by secular entities and by people of faith.

    Some of the greatest altruists / philanthropists who have done so much for mankind have been, and still are, those who wisely earn, save, invest, and personally designate how to make their chosen corners of the world a a better place. Churches, houses of faith, and charities help so many people in so many different kinds of ways! I am grateful to GOD for hard-working, world-improvement-minded people who go the extra mile to care for themselves, their families, and even those outside of their inner circle! If more people worked wise and hard, planned prudently for the future, invested in building up other people’s lives, then the excessive portions of government’s social welfare system would not be seen as indispensable, and so necessary. More people would be raising themselves up higher to better stations in life, and would become independent, financially-secure, and go on to help others, in turn. When people look to government for help, it is impersonal, and those in the tough trenches of life often seem to stay there. Whereas, when people help people, it is personal, encouragement, follow-up, and accountability exists.

    Hedge Fund Manager, or not, with extra discretionary money or not — we might have an extra room for a down-and-out family member or friend or former neighbor, and offer them that room with specified terms and conditions that will help life be easier on you while you interact with that person or persons over time. In so many cases, after a time, the visitor gets employment, now having an address at which to receive mail. Then the visitor(s) become(s) room renter(s). Then, over a little more time, the room renter finds his/her/their own house or apartment and moves out, and you have the satisfaction of knowing that by your kind and patient and caring efforts, you have helped some other person to raise their station in life, have planted a seed in them that will cause them to go out and help somebody else in the future, and you have even received a little extra money for having rented out your spare room. You are not only financially richer–you are also richer in your soul, knowing that you have helped and encouraged another human being!

    Envy of those who earn or have more than us has been around since the dawn of time, but each and every one of us is so much richer than we think, even if we are homeless in America.

    From a girl living in a tent, to an apartment, to her own home, with a Thankful Heart TO THE GLORY OF GOD! and with a Heart for People…

  6. avatar Rachmawaty says:

    hahahahaha. $4 billion dolars???? waaawawaa….. amazing….. i want it…

  7. avatar Mike says:

    This makes me a little bit sick. These people need to pay taxes at the same rate as the lower classes do. We should just cut away this social dead weight. They are just taking the rest of us down.

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