The Getty trusts were established in California, but Kendalle and Sarah’s trust moved to Nevada. Kendalle and Sarah Getty, according to the magazine, made an effort to convince tax collectors that they did not live in or conduct business in the Golden State to avoid state taxes. Paul Getty, the oilman who assembled one of California’s most famous fortunes, maneuvered their wealth in an effort to limit the amount of taxes they paid, the New Yorker reported in January. The government is “completely outgunned,” argues Collins, who gave away his fortune at 26 and is now a senior scholar at the Institute for Policy Studies, a progressive think tank based in Washington. The ‘wealth defense industry’ - a network of accountants and consultants tasked with helping the rich stay rich - is responsible for homeowners avoiding L.A.’s ‘mansion tax.’Īmericans already spend some $14.4 billion per year on tax-preparation services alone, according to one recent estimate.īut the fight to collect the taxes that the richest Americans owe is especially fierce in California, a hot spot for what author and Oscar Mayer heir Chuck Collins calls the wealth defense industry, the complex of law, accounting and money management firms that work to ensure that the richest Americans stay that way. California, which has more millionaire households and more billionaires than any other state and holds 17% of the nation’s wealth despite having only 12% of its population, was due to face an outsize share of the new enforcement actions.įor Subscribers Celebs dodged millions in L.A.’s ‘mansion tax.’ Meet the industry guarding their wealth Around half of the $80 billion would have gone toward increasing tax compliance among Americans with incomes over $400,000 a year, with the rest of the money earmarked for improving the agency’s taxpayer services and modernizing its archaic technologies. The audits that would have been funded by that new money could have hit rich Californians hard. This week, President Biden signed a bill that slashes $21 billion from a planned $80-billion increase in the agency’s funding - a key GOP demand as part of the bipartisan deal to lift the federal debt ceiling. California millionaires and billionaires who were set to face the full auditing firepower of a revamped Internal Revenue Service can breathe a bit easier, thanks to congressional Republicans.
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