Your tax dollars for the rich and famous?

By: Sharyl Attkisson
Topics: Follow The Money

Sen. Tom Coburn

From tax write-offs for gambling losses, vacation homes, and luxury yachts; to subsidies for ranches and estates, billions of your tax dollars are supporting the lifestyles of the rich and famous. And a new report from fiscal conservative Sen. Tom Coburn (R-OK) counts the ways.

Read Sen. Coburn's report

Entitled "Subsidies of the Rich and Famous," Coburn outlines billions for millionaires: $74 million in unemployment checks, $316 million in farm subsidies, $9 billion in retirement checks and more. Overall,

Coburn says millionaires have received $9.5 billion in government benefits since 2003, and borrowed $16 million in government-backed education loans for college.

Some big stars are among the beneficiaries. The Coburn report says that millionaires who have collected taxpayer-funded farm subsidies include former NBA star Scottie Pippen and billionaire media titan Ted Turner. The report cites General Accountability Office findings that highlight the need to prevent USDA farm subsidies from going to the rich.

Also in the report: superstar singer Jon Bon Jovi paid only $100 in property taxes last year on his extensive NJ real estate holdings because he "raises bees" on it; "The Boss" Bruce Springsteen gets subsidies for leasing property to an organic farmer. Quincy Jones, who produced the top selling record of all time, Michael Jackson's "Thriller," got a $25,000 award from the taxpayer-funded National Endowment for the Arts for his contribution to music.

Coburn says an award of "prestige" can be given to honor and recognize such megastars; but insists monetary payment is unnecessary -- and now unaffordable.

And believe it or not, some millionaires have been collecting unemployment on the shoulder of taxpayers. The IRS reports that in 2009, 2,362 millionaires collected a total of $20,799,000 in jobless benefits. Eighteen individuals with adjusted gross incomes of ten million dollars or more received a total of $220,000 in unemployment payments that year.

Sharyl Attkisson
Sharyl Attkisson is a CBS News investigative correspondent based in Washington. All of her stories, videos and blogs are available here.
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by meemaaaa October 16, 2012 10:35 PM EDT: Why do people have it in for those who make money or are wealthy?? Some people actually work hard and make the money. No president has addressed the problem of the tax code-which is the burden. It's not the CEO's of the world writing the 50000 page tax code. It's so convoluted that loopholes are rampant at every level. These guys just "adjust" the numbers to fit their policies. I haven't seen any relief during B.O's time. I am sure Romney will protect his wealth too. Who wouldn't?
If you gave every person in this country a million(all equal)some would save and invest. Some would blow it in a week and be right back where they started. Equality of wealth is a myth. It makes no sense to tax someone to death. Who gets the money? The government. We see the massive waste going on in the government. You get a few million more away from billionaires and do what with it?? Usually waste it. There is no relief for the working poor. Wealthy people are closing their wallets. No one is lending money. Deep cycle businesses are laying off thousands. Any one who says they would voluntarily hand over more money to the government if they suddenly became wealthy is a liar. They would do the exact same thing that the "1%" does. I'm not wealthy, but I also don't villianize those who are. So lets get off the "fair share" bandwagon. Let's talk about waste, let's talk about bloated government(we really need 45,000 irs employees?)Let's talk about billion dollar campaigns, superPACs, lobbyist with pet projects. Or the EPA or billions sent to other countries and wars. The government is their own worst enemy. Do an audit of the amount of money wasted every day in congress and it will make Bill Gates look like a pauper.
Everyone is subsized in some way! Anyone buy a Prius? Take an energy credit? Get a free cell phone? Take phoney "business deductions"? Anyone worked the welfare system? Taken unemployment pay without really looking for work? Happens every day. Fix the system and quit blaming each other.; Reply to this comment


by presidentelect2012 April 27, 2012 11:17 PM EDT: FOLKS STOP CRYING IF YOU WAS RICH AND HAD ALL THAT DOE YOU WOULD BE TRYING NOT TO GIVE IT AWAY WITHOUT REPRESENTATION. THOSE THAT KNOW THE TRUTH DON'T PAY, REALIZE YOU NOT IN THAT CLASS!!! Do you think all that protesting and Wall Street sleep overs mean anything it don't those with the DOE control and make the LAWS!!! president2012.net; Reply to this comment


by LVTfan1 November 19, 2011 2:36 PM EST: Does anybody read this stuff? Certainly no one earning a salary checked the content on page 5 of the Coburn report. Perhaps it was written by an unpaid intern, and fact-checked by another.

It says,

"The 2011 Annual Report of the Social Security Board of Trustees ("Trustees Report") stated that at the end of 2010, about 54 million people were receiving Social Security benefits, including 37 million retired workers and dependents of retired workers, 6 million survivors of deceased workers, and 10 million disabled workers and dependents of disabled workers. Not everyone, however, pays into the Social Security program. An individual is required to pay into Social Security through the payroll tax only if they report an adjusted gross income ("AGI") of annual earnings of $25,000 for an individual or $32,000 for a married couple that files jointly. In 2010, 157 million individuals earned these amounts or more and paid taxes into the Social Security Trust Funds.10"

The footnote supports the 157 million figure, but not the "earned these amounts or more" part of the final sentence, and the preceding sentence just isn't true. (I suspect it is a severe misunderstanding of who is and is not expected to pay federal income taxes on Social Security income, which is an entirely different issue.)

Every wage earner knows that payroll taxes are withheld on the first dollar one earns, and that the employer's match of that contribution also comes out of what one would otherwise have received.

And if indeed we had 157 million workers all receiving wages over those levels, the 99% would be fairly content!

Let's get real, Senator! Read this stuff before it gets sent out!

Putting that aside, there are some important points in this piece. We subsidize landholders mightily, by not requiring them to pay, as their share of the revenue needed to fund public goods and services, the lion's share of the rental value of the land they hold. In the case of agricultural land, this is a small amount per acre, but in the case of choice urban land, it is huge, and it COULD fund our common spending; instead, it enriches millionaires, corporations and absentee landholders! Aren't we generous with them?; Reply to this comment


by bonge411 November 17, 2011 8:09 PM EST: Here is a FACT that these right wing fools don't report when it comes to Jon Bon Jovi.... He lives on 27 acres of land. 20 of them is his main home. The additional 7 is a piece he purchased next door. The land that gets the break with the bees is the 7 acres. He still has to pay upwards of 250,000 for the 20 acres. So REALITY CHECK... His property taxes for a house he hardly lives in is upwards of 350,000 a year. NO use of School system garbage pick up etc..... He pays some of the HIGHEST taxes in the state of NJ..... Get your FACTS STRAIGHT... Don't edit them for your own sake Mr. Senator.; Reply to this comment


by lexingtonlady November 16, 2011 1:25 AM EST: I keep trying to tell you cons that while they have you demonizing the poor the rich are the ones ripping us off the most. This is but a drop in the bucket people. There are grants and a whole host of things you have no clue about.; Reply to this comment

by ammo17 November 15, 2011 9:40 AM EST

who makes our tax laws and loopholes?ans.congress.so why are they questioning their own mistakes?ans.they are just as greedy and corrupt as any third world country.

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by naksuthin November 15, 2011 2:21 PM EST: Laws are often passed by Congress to help groups of people who are struggling or to encourage important industries.
The rule about bee keeping was probably intended to help struggling bee farmers who are dealing with A mysterious illness is killing tens of thousands of bees across the U.S

So here's how Bon Jovi managed to pay only $100 in property taxes.

Tax Accountant:"You're having to pay hundreds of thousands of dollars in property taxes each year on you multi million dollar NJ mansion"

Bon Jovi:"Gee, that's a lot of money. Is there any way I can lower that?"

Tax Accountant: "Yeah. There's a special tax break for bee keepers that are having a tough time surviving due to A mysterious illness is killing tens of thousands of bees across the U.S.
If you put a couple of bee hives on your estate, you can call yourself a bee farmer and take advantage of this loophole."

Bon Jovi: Great. Let's do it. I'll have my gardener purchase a couple of hives that we can keep out of sight."

by bajajohn1 November 14, 2011 7:29 PM EST

Most distressing fact of all in this story is that millionaires actually collect unemployment insurance. How utterly despicable.

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by naksuthin November 15, 2011 1:57 PM EST: That's just why it's important to have very progressive tax rates.

The rich are good at pressuring the government to pass laws that allow them to profit from rules made to help those in need.
In my area anyone who grows 15 fruit trees can have his land taxed at agricultural rather than residential rates. They also get to purchase household water at lower agricultural rates too.
So what happens. Every rich person with a big lot grows 15 trees calls himself a "farmer" and gets preferential treatment for property tax purposes.

With highly progressive tax rates the rich will still be able to take advantage of special tax breaks....but they'll be starting off at much higher overall rates to begin with

by msimamaji November 14, 2011 6:18 PM EST

Guess who wants the rich to keep all their tax breaks?

None other than the GOP.

Obama wants to reform our taxes and get rid of all the tax breaks for the rich and famous. But guess who's filibustering those proposals? None other than the GOP - Tom Coburn's party. \

So again, Tom Coburn talks big - but when it comes time to filibustering - he supports the GOP.

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by bramletabercrombie November 14, 2011 6:44 PM EST: They probably call it freedombustering in the halls and he can't say no.


by lexingtonlady November 16, 2011 1:26 AM EST: Obama signed those the last time because cons hijacked umemployment bennies. You know this as you say this.


by Martha12345 November 14, 2011 5:43 PM EST: Are these the 1%'ers the OWS are all worked up about ???; Reply to this comment


by lucifersshadow November 14, 2011 5:36 PM EST: So they get all these subsidies, and then turn around and complain about the "deadbeats" of the Occupy Wall Street movement.; Reply to this comment