Bobcats Owner Robert Johnson Carries The Ball For Greed Merchants

Updated: July 31, 2007



Money is thicker

than Color far


Which brings us to Billionaires Robert Johnson of Black Entertainment Network fame now the Charlotte Bobcats ( among many investments ) and fellow Billionaire Stephen Schwarzman of Hedge Fund fame. Do they know each other Probably. But it does not matter. What does is Johnson is all over supporting Schwarzman’s God Given Right NOT to pay his fair share of taxes.

In case you are one of the few who has missed the continuing news item about Schwarzman who is listed by Time Magazine as one of the 100 most important people on Earth, Time praising him for his visionary financial industry leadership. Which amounts to using a huge pool of capital from the Super Rich to buy and sell companies, strip them of their assets, pay him and his colleagues astronomical fees and what Time does not mention his tax avoidance scheme.

It turns out Schwarzman and the legion of other hedge fund managers who have arisen these last few years discovered a HUGE loop hole in the federal income tax regulations far better than all the ones they already were using before they decided their futures were in hedge funds.

Stephen Schwarzman most notable of all of them pays himself hundreds of millions of dollars a year for “managing” his hedge funds but rather than declaring those astronomical sums as personal income and paying the top scale of 35% in federal income tax ( a rate which none of the super rich really pays of course ) instead Schwarzman and the others declare ALL this income as “capital gains” which is taxed at just 15%. Far better than winning the lottery.. And never the purpose of the capital gains tax rate.

Here is the point if you don’t get it

As regular income the ONLY income that is taxed at 15% is income UNDER $ 30,000 a year. Even if you make all of $ 50,000 that $ 20,000 minus deductions is taxed at 25%, And most important of all income above about $ 350,000 is taxed at the top rate of 35%. Schwarzman avoids that “complication” by tagged ALL his income his pay check as “capital gains” and paying just 15% the rate he would pay if his total income was less than $ 35,000 a year except he is making hundreds of millions each year and now billions all taxed at 15%.

Here is the point IF

there was ANY fairness

where there isn’t


Should be able to call their pay check not personal income but CAPITAL GAINS and never pay more than 15%. But you can’t unless you run a hedge fund or various other limited partnerships.

Why not. Because if ALL income was taxed at just 15% there would be an immediate financial crisis in the United States, the federal debt would become far higher than it is, unleashing all kinds of problems. So instead and of course the ONLY Americans who get this special tax benefit are the SUPER Rich like Stephen Schwarzman and …

Robert Johnson to a lesser extent

So why this is a Sports Story is that the ONLY African American owner of a major sports franchise is lobbying Congress and others far and wide as reported in the Washington insider journal named The Hill. Lobbying to STOP Congress from plugging this outrageous loophole so Schwarzman and the others can continue paying a tax of just 15% on their pay checks.

Still why is this story in the Black Box

Because Robert Johnson does not understand more likely simply does not care that in shifting the legitimate taxes of the Super Rich onto the shoulders of the middle class and the poor in effect Robert Johnson is doing “his part” to insure that African Americans do not have the resources to compete on a level playing field be they as entrepreneurs, athletes, sports executives, broadcasters, etc. etc.

And that if professional Black athletes paid just 15% on their salaries instead of 35% in federal income tax some of them would use those extra millions that now go to Uncle Sam to begin more successful BLACK owned businesses, and yes just maybe invest in young companies like BASN.

But instead

Robert Johnson

is more interested

in kissing

Stephen Schwarzman’s

Ass according to

The Hill

Whenever you want to reach us with comments or better yet an idea for a topic for the Box …….