LIVING OFF DIVIDENDS & PASSIVE INCOME

Merck has been sued by the IRS for $2.3 Billion for back taxes and penalties. It set up a company in Bermuda which owns its patents and then its pays that company royalties.

It took advantage of what is often called “tax arbitrage.” The usual strategy: lower a company’s tax bills by structuring transactions so certain types of income or expenses are classified as one thing by the IRS, but something very different by another country’s tax regulators.

Apparently Al Capone wasn’t kidding when he said “A good lawyer with a briefcase can steal more than ten men with machine guns.”

• Book Review - Undercover Economist I just read The Undercover Economist: Exposing Why the Rich Are Rich, the Poor Are Poor--and Why You Can Never Buy a Decent Used Car! by Tim Harford.Its an incredibly good book that explains every economics [like whether coffee shops make a profit and how grocery stores gouge you]. However......
• Audio Books Rock! A few weekends ago, the wife and I went down to Mexico for a day trip with another investor couple. Had a great time and had great seafood. On the way back, which was a 4 hour drive because of the wait involved in crossing the border, we listened to......
• Invest in Insurance companies? Insurance companies have taken a beating with all the damage caused by all these hurricanes. Maybe its time to start investing in their stock. We know that a lot of damage has already been done and in New Orleans it won't happen again. [Mainly because nothings being rebuilt!]. Also historically......

• How Do You Want To Pay Taxes? There's been a lot of talk around the blogosphere lately about taxes (like there's more than usual or something).  Specifically, the talk is about such proposals as taxing healthcare benefits in order to support a government insurance program.  Other talk is about increased income taxes on the rich, Obama's......
• Will Your 401K Match Return? What will it look like if it does? If you're like many workers still lucky enough to have a job during this recession, you've probably seen your employer cut or eliminate the contribution match on your 401k plan. Mine did. My company match on 401k contributions was the first thing......
• blaming video game Now I'm gettin' serious.I came across from Gamespot News and I have heard something that really hurt my (little) gamer's heart. It's said: Now, one thing that won't go on in Thailand is sales of Rockstar Games' blockbuster action game Grand Theft Auto IV. Reuters is reporting that the country's......

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