Showing posts with label Tax Avoidance. Show all posts
Showing posts with label Tax Avoidance. Show all posts

Friday, March 8, 2013

Macondo Redux

Well, a simple reading of the New Day, the preeminent newspaper of Puerto Rico, tells the story.
We’re screwed.
This morning at 12:30 three hundred federal agents of the Bureau of Prisons entered the federal prison here—the first operation of its kind. They literally went cell by cell, confiscating everything from drugs to cell phones to homemade weapons.
The prison, according to the New Day, has been without contact from the outside world since the murder of Osvaldo Albarati—no calls out, not by cellular phones, and not by landlines. Visits have also been suspended.
It all started a week or so ago when Albarati, a prison official, got killed driving home from work one night. It was a clear execution—21 bullets shot into his car, the paid assassins speeding away. And nobody had much doubt who had paid for the killing—two inmates who were directing the drug cartels from behind bars. For this they needed cell phones, which the prison official had found and confiscated. So the inmates got together and paid to send a message to any other honest guy in the prison system who might think about doing his job.
Things are a little different, here in Puerto Rico.
“The inmates are in control of the prison,” a friend who is a doctor and who was hired to give medical services in the prison system told me. “They even control who can be held in the prison. That’s because each prison has a gang associated with it, a gang that operates inside and outside the prison. And a member of an opposite gang will be killed in days. So the prisoners vet the incoming convict, and the prison administration listens. They have to.”
It appears that this mentality is lost on the Feds, though, and the prisoners, as reported by the New Day, were a little stunned by the severity and thoroughness of the search.
The situation of the prisoners running the prison all started in the late seventies, when a guy named Carlos Torres-Irriarte—OK, call him by his nickname, La Sombra—decided to form a little group to protest abusive prison officials and abusive gang activity. And La Sombra must have been a charismatic man, because very soon the Ñetas had gained control of the biggest prison on the island, Oso Blanco, or polar bear.
Well, you don’t go places without stepping on a few toes, which in this case was—of course—the rival gang. So that gang—called  “Group 27,” or “The Insects”—decided to kill Irriarte, which they did, with the help of a prison guard.
Or was it just the rival gang? Irriarte, it seems, had come down hard on one thing—no drugs. And soon after his death, the Ñetas had cornered the market on drugs.
They also had a little score to settle with their rivals, so they tunneled for days to reach the leader of the Insects, a guy nicknamed Manota. Then, according to street legend, various body parts were sent to family members, gang leaders, and interested others.
Here’s Wikipedia on what happened next:
The news soared and the media depicted the story as a hostile takeover. Used to their advantage, they used the media coverage as a means to send out messages to other members in different prisons across the island. Their message was clear: They wanted justice and they meant business. They warned the administration and let them know that if their needs weren't met about improving the living situations within the facilities, there would be bloodshed and an all out war. By the middle of 1984, their numbers multiplied excessively. They took over 7 major prison facilities across the island and ruled them with an iron fist.
Well, well—what else is going on in Puerto Rico? Well, the New Day has been looking at the tax returns of our senators and legislators, and comparing them to the financial statements they are required to file. And guess what? The legislators are far more able to make laws than follow them—some serious discrepancies came up. How is it that a senator making over 80,000 dollars a year—the third highest salary on any legislature in the states—only got around to paying 12 dollars in taxes? The matter is under investigation.
And it’s a shame that the legislators aren’t paying their taxes, because we are, frankly, broke. So broke that we can’t pay the 100 million owed to government employees for unused sick leave—and that isn’t making the police and the teachers (the two largest groups affected) happy. Yes, it’s true that the government workers have some nice perks—not the least of which is the thirty days of vacation, the eighteen days of sick leave, and the twenty holidays. Uncharitable minds—perhaps warped by having worked in private enterprise—call this excessive.
So the governor has declared…well, what has he declared? It’s a little uncertain—if he can find the money, he’ll pay; if not, well, he’s not gonna issue checks with insufficient funds. So people will have to wait.
Oh, except for the judicial and the—you were waiting for this, right?—legislative branches.
They’ll get paid.
In Germany, the situation is serious but never critical; in Austria, the situation is critical but never serious.
And Puerto Rico weighs in on the side of Austria. The island is busying itself with chismes de la farándula or jetset gossip. Will our local bombshell Maripily—rumored to have more on the outside than in the penthouse—be on People’s Most Beautiful list? And what about the Lady of Fire, Olga Tañón? Will her newest song take off?
I leave you with this story—perhaps true—of García Marquez, who was once asked why he didn’t write about Puerto Rico.
“They didn’t believe me when I created Macondo,” he said, “just imagine what they’d say if I wrote about Puerto Rico!”

Sunday, August 26, 2012

Strategy Time!

OK—time for confession. I spent hours yesterday trying to figure out what a blocker corporation was.
Even asked Mr. Fernández, who for once wasn’t quite certain.
And this guy—besides always having the answer (and always the correct one, damn him!)—has an MBA.
Right. So a reasonably intelligent guy (that’s me) and a very intelligent guy (that’s you-know-who) with an MBA can’t figure out the basis for Mitt Romney paying 15, not 35% on his millions.
Or is it 2%?
Well, just googled it again, and guess what?
Can’t get my head around it.
I did learn some interesting facts. Seems that there are two things. Tax evasion is illegal and very, very bad. There is something, however, called tax avoidance and that is legal and very, very good! (Especially for the rich…)
See?
And it appears that blocker corporations are legal. So, I thought, what about me? Can I set up a little blocker corporation? I’m living down here in the Caribbean. Easy enough to run up to Grand Cayman, file some papers, then head for the beach! Supposed to be nice up there.
I think you know the answer.
No.
You gotta have mega bucks to do this scheme. And for little pubic hairs (can’t say the word in Spanish—it’s obscene…) like me?
Sorry. Find another playground.
Well, well. What to do?
Clean the bathroom, I decided. For Carmen was coming to dinner, and it seemed like a thing to do. Can’t have a dirty bathroom if ladies are coming to dinner.
Right, did that. Then dawdled around the rest of the house. Got it half clean when Carmen, ever punctual, showed up.
So we sat, ate dinner, and talked death.
Well, she’s a lady who knows a thing or two about death. Both of her parents AND her lover died virtually in her arms. 
Parents died at home, and were, in good traditional fashion, waked at home as well. Yup, just like the famous (in Puerto Rico at least) painting by Oller. Have a look….
 
And of course, she prayed the rosary. Still does, though Carmen is only culturally Catholic. Which is to say that she (probably) disagrees with 80% of the dogma but gets comfort from praying the rosary.
Who am I to criticize?
She believes, for example, that a green butterfly appearing in the house portends the death of someone close to her. Well, I thought, she’s not alone. Japanese also think so. And I was forming that thought, or rather that sentence (we were speaking Spanish) when Carmen went on to say…
“…it’s such an honor, a privilege, to be present when someone you love dies….”
And then, the heavy mirror hanging over the buffet moved rhythmically back and forth three times.
And no, there was no wind.
Also, not one but I saw it.
Not surprising, really. She’s here and there, that mother of mine. She gets around. No smoke detector, so she grabbed the mirror. 
Well, I did the dishes, Raf and Carmen went off to see a play. Got up and did the morning trot. And began wondering.
How to get through the week? There’s a nest of vipers gathering in Tampa, and what to do? Turn off the iPad / television / newspaper completely, and clean the house?
Music, I decided. And then began thinking of music about music. And that led, inexorably, to Handel. 
Well, it’s a strategy. Not a bad one. So I went to YouTube, and snatched the clip below.
But for stronger souls, click on the link below, and see if you can understand Mitt’s money….
Just don’t tell me until after next week….