GOP Senate candidate David McCormick has up to $2.2 million in a 'dynasty trust' that allows him to evade wealth taxes --

[BumRushDaShow]

Source: Business Insider

Feb 5, 2024, 12:57 PM EST


Dave McCormick, the former Bridgewater CEO who's all but certain to be the GOP Senate nominee in Pennsylvania, is incredibly wealthy.

It's a key reason why he's running in the first place: This year, national Republicans prioritized recruiting wealthy candidates who would be willing to spend millions on their own campaigns.

And after spending $14.3 million on an ill-fated Senate bid in 2022, McCormick has already loaned his current campaign $1 million as he seeks to unseat Democratic Sen. Bob Casey.

While stratospheric wealth may appeal to the strategists and top GOP figures who are aiming to retake the Senate this year, there are aspects of McCormick's personal finances that could undermine his image in the Rust Belt state he hopes to claim for the GOP. Among them is a so-called "dynasty trust."

Read more: https://www.businessinsider.com/david-mccormick-dynasty-trust-pennsylvania-senate-wealth-taxes-2024-2

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Full headline: GOP Senate candidate David McCormick has up to $2.2 million in a 'dynasty trust' that allows him to evade wealth taxes — potentially forever

He lost to Dr. Oz (another self-funding carpetbagger) in 2022 in the Senate run that netted us John Fetterman and will now be running against incumbent Senator Bob Casey, Jr. And like Oz and even Frothy (whose seat Casey originally took), he's a carpetbagger and not even living in PA.

[lapfog_1]

1. it is a lot worse than we think...

The truly wealthy have come up with a scheme to not pay taxes pretty much forever.

It is a variation of the "Leo Getz" money laundering... in the Lethal Weapon movies.

If you have, say, 10M or more in stock or other asset sitting in a bank or fund someplace, you simply contact your bank(s) and pledge your asset for a loan ( say $1M or so depending on your needs). You will pay interest to the bank. The bank loans you the money at a fairly attractive interest rate ( after all you are wealthy ). You DON'T pay tax on that loan. You spend it, possibly invest it in other stock to make some money ( again, with no taxes, or worst case, long term capital gains should you need to sell the asset you bought with the loaned money, but only on the gain in value of that asset... remember this is "free money" because it is the money the bank loaned you! )

You pay the nominal interest on the loan.

That's it. Spend your $1M from the loan on trips and entertainment, what ever you want... and never pay the loan back. Just roll it over into another loan. when you die, your estate can inherit the loan and continue this method of operation for years. All that is required is that either your original asset or the original asset plus the gains ( tax free ) continues to outpace how much you borrow for your living expenses.

The assets that are pledged to back the loan can be anything, cash, stock, land, gold, etc

you are essentially paying 6 percent or 7 percent on the money you make... not income money, but investment money. You can pay yourself some nominal salary and income tax on that for "appearances" sake.

[Shermann]

2. Doesn't he have to die for the dynasty trust tax shelter to go into effect?

This may not be the panacea implied here, although I'm sure his family is very appreciative.

[BumRushDaShow]

4. BI had another article explaining it

https://www.businessinsider.com/dynasty-trust-estate-tax-gst-generation-skipping-wealth-inheritance-2023-5

It sounds to me more like having a tax-free (transfer-tax/gift-tax wise) place to park lots of $$$$ for one's heirs, and apparently there are types that allow it to be shielded from creditors as well.

[FakeNoose]

3. He may own a house or two in Pennsylvania, but he's NOT a RESIDENT

Neither was Dr. Mehmet Oz, but he became the Repukes' candidate for Senator anyway.

Dave McCormick grew up in the Pittsburgh area, but he hasn't been a PA resident for many years. He currently resides in Connecticut, so let him run for Senator there.

When are the PA Repukes going to start following the rules? They certainly have no claim to being the "Party of Law and Order."

[BumRushDaShow]

5. It's going to be a struggle to claw back power from them

and beat down their arrogance.