Something Borrowed Makes You Blue – Student Debt And Joint Returns
From a policy point of view, the current system, if you can call it that, makes no sense at all. The message graduate schools can now send to a highly indebted student is that further increases in debt never have to be paid back, so there is no point in being price-conscious. It is as if we have consigned an entire generation to be in a permanent state of work-out.
Jeffrey Webber’s Cayman Insurance Shelter Nixed By Tax Court
Mr. Webber established a grantor trust that purchased “private placement” variable life insurance policies insuring the lives of two elderly relatives (That’s the ghoulish part). The premiums paid to Lighthouse Capital Insurance Co. (Cayman Islands) after deduction for mortality risk and administrative charge were placed in separate accounts. The accounts were segregated and invested in start-up companies that Mr. Webber was intimately familiar with. They did quite well.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.