What we are reading in late September and early October 2018

What we are reading in late September 2018

In case you missed it, Donald Trump, received a lot of help from his father in the form of tax-evading gifts. Donald and Fred Trumps Tax Schemes

Fred Trump used GRAT (Grantor Retained Annuity Trusts) and low balled real estate appraisals to avoid large amounts of inheritance taxes as he passed assets to his kids..  GRAT let you "freeze" the value of an asset and transfer the asset to your kids after take some annuity income from the assets. Any appreciation passed to your kids. 

Tech company founders typically put their company shares in a GRAT for their kids right before a company issues an IPO.

Did you know you know that in 2016 you had a 5.45 million lifetime exemption from estate and from gift taxes. The Trump's tax cuts and jobs act to $11.2 Million estate and $11.2 million for gift taxes per person.

Obama tried to change or close the GRATS loophole in 2011 and again 2015 as a way to raise revenue for the budget but was blocked by congress. Obama and GRATS.

Bloomberg reports a tiny chip implanted in SuperMicro motherboards gave Chinese spy's access to top US corporations. Here in Bloomberg BusinessWeek.

Finally, we, here at the Evil Black Economist, have long advocated a balanced immigration policy tied to the economic plight of poor people in the US (including existing immigrants).  Immigration drives down wages for poor people in the US.  And the US has no industrial policy to shift workers into new jobs.

A Business Week commentator has a similar idea. Here in Bloomberg BusinessWeek.

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