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Can Somebody Explain Tax Shelters To Thomas Piketty?

My career has spanned the period in which the United States moved from high marginal rates – 70% when I started – to much lower rates and something of a war on tax shelters.  The high marginal rates seemed to create an irresistible impulse to use the tax code as the Swiss Army knife of social policy.  Something tells me that high marginal rates will not all of a sudden give us CEOs who will say “Screw it, I’ll just take 400 grand.  Not much point in having more.”  Rather, there will be a renaissance of shelter activity.

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Former Tampa Bay Buccaneers Owner Scores Touchdown In Tax Court

Former Tampa Bay Buccaneers Owner Scores Touchdown In Tax Court

The parcel had a history of zoning problems and conservation concerns.  There is a bald eagle nest on the property and it is within a wildlife corridor.  The IRS valued the property based on how it is currently zoned.  The PRH appraisal was based on obtaining a higher density and allowing for multi-family housing.  The IRS harped on the former zoning problems, environmental issues and likely neighborhood opposition to multi-family housing

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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.