Wednesday, October 11, 2006

Idiot attacks Harry Reid!

I've been reading John Solomon's hit piece on Harry Reid (and the subsequent posts of others which demonstrate at length he's both a hack in general and wrong on this specific piece) and I just can't help laughing at this dipshit. Just read this bit, in which he attempts to make Reid's actions seem nefarious.
The complex dealings allowed Reid to transfer ownership, legal liability and some tax consequences to Brown's company without public knowledge, but still collect a seven-figure payoff nearly three years later.
Sounds sneaky, huh? Unless, of course, you have even a glancing knowledge of a legal entity known as a limited liability corporation:
Like a corporation, an LLC is a separate and distinct legal entity. This means that an LLC can obtain a tax identification number, open a bank account and do business, all under its own name. The primary advantage of an LLC is that its owners, known as members, are not personally liable for the debts and liabilities of the LLC. For example, if an LLC loses a big lawsuit and is forced into bankruptcy, the members will not be required to make up the difference with their own money. If the assets of the LLC are not enough to cover the debts and liabilities, the creditors cannot look to the members, managers or officers for recovery.

An LLC can be taxed either as a "pass-through" entity, like a partnership or sole proprietorship, or as a regular corporation. By default, an LLC is taxed as a pass-through entity, and the owners of the LLC are not subject to double taxation. This is different from a regular corporation, which pays a corporate tax on its net income (the first tax) and then a second tax when the corporation distributes profits, as the stockholders pay income tax on dividends. With an LLC, the profits "pass through" to the owners, who pay taxes at their individual tax rates.
Ownership, legal liability and tax consequences? Yep, yep and yep.

I've decided that John Solomon is trying really really hard to get fired from AP and prove he's stupid enough to host his own show on Fox.

Update: What makes this hysterically, laugh-out-loud funny is Solomon's statement that Reid sold the property "without public knowledge."

Yet the linked story above is illustrated by the pic on the left, which is, as the caption says is an "image of a deed provided by the Clark County (Nev.) Recorder, shows a June 13, 2001, deed with Senate Democratic Leader Harry Reid's signature for a sale of land to a limited liability corporation created by Jay Brown, a longtime friend and former casino lawyer. Reid did not disclose the sale on his annual public ethics report or tell Congress he had any stake in Brown's company. He continued to report to Congress that he personally owned the land."

First, deeds are public documents so how is Reid supposed to have done this "without public knowledge"?

Second, I'd love for Solomon to explain exactly how not reporting this transfer to an L.L.C., in which Reid was a partnership, is supposed to have benefited Harry Reid. You know if Reid had reported the transfer, the Solomons of the world would be saying he was trying to hide his ownership.

Dear Republicans, you might want to get better hacks, because, as I've said before

2 Comments:

Anonymous Anonymous said...

Here you go moron:

http://powerlineblog.com/archives/015527.php

have fun with it.

5:01 AM  
Blogger Nitpicker said...

Thanks, anonymous.

That was fun. I especially like all the innuendo wrapped around the simple statement: The AP report contains no evidence that there was anything crooked about the transactions themselves, although they apparently were never documented.

If the masters of cognitive dissonance who are Power Line can't spin this into corruption then there really is nothing here. And, again, there is a deed, so I'm not sure what documentation the Hinderaker's looking for...

7:32 AM  

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