The following letter was sent to SEC Chair Mary Schapiro and IRS Commissioner Doug Shulman on "tax day" with the hope they will jointly work at restoring the integrity of cash flow statements, without question the most important analytical tool for investment advisors like myself. It is simply astonishing, given their material nature, that listed … Continue reading Letter to SEC Chair and IRS Commissioner – Tax Deduction Pyramid Scheme
Tag: 2011
Prior to the fractions rule, investors were investing $1 in order to get $5 to $7 in tax deductions. President Reagan was so incensed that he signed into law new legislation, the "fractions rule," specifically designed to end this scheme. During this period no firm was more abusive with respect to tax avoidance than General … Continue reading Blackstone’s Tax Engineers, Inspired by General Electric, Attempt to Repeal The Fractions Rule
These four technology companies have all achieved great success. My personal favorites from a product standpoint are Apple, Intel and Google. For investors, however, "shares outstanding" do indeed matter. Given that neither Apple nor Google have ever paid a dividend, coupled with their near tax exempt income status due to massive stock option deductions, the … Continue reading Why Shares Outstanding Matter: Apple, Intel, Google and Microsoft