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IPFS News Link • TAXES: State

REPORT: John Paulson May Move To Puerto Rico To Avoid A Gigantic Tax Bill

• Business Insider

According to Bloomberg's Stephanie Ruhle, Katherine Burton, and Zachary Mider, hedge fund manager John Paulson is considering leaving New York to go to Puerto Rico, where a tax loophole would let him reduce taxes on the $9.5 billion he has in his own hedge fund.

Ten wealthy Americans have already taken advantage of the year-old Puerto Rican law that lets new residents pay no local or U.S. federal taxes on capital gains, according to Alberto Baco Bague, Secretary of Economic Development and Commerce of Puerto Rico. The marginal tax rate for affluent New Yorkers can exceed 50 percent.