Leona Helmsley Said... Only Little People Pay Taxes

 Charlie Sykes wrote this: I know I’m dating myself with a reference to Helmsley, whose reign as the “Queen of Mean,” in the 1980s has been eclipsed by so many more deplorable villains. At the height of her notoriety, Forbes later wrote, “she was as big as Donald Trump or Kim Kardashian.”

Her comment that “Only little people pay taxes became America’s version of ‘let them eat cake.’” In 1992, she was sentenced to four years in prison for tax evasion.

Really, really rich folks usually figure out ways to avoid or defer paying taxes.  And in my lifetime I've been to the homes of three people who were very wealthy and worked diligently to accumulate that wealth.  Real estate that is on the water in Miami has a way of appreciating in value in ways that defy most measures of value, taxes, inflation and most normal folks incomes.  The houses of the "rich and famous" are the backbone of their wealth.

Living in a modest 700 square foot apartment in an amazing neighborhood where the real estate has appreciated and rents that have "sky rocketed" has some perverse consequences for those whose incomes have not kept up housing costs.  It's difficult to collect enough in maintenance fees to maintain and improve the property.  Coop and condominium associations are often without adequate reserves for major repairs because of insurance increases and utility bills.

Modest investors who bought units for rental income are often just as reluctant to increase maintenance fees as older owners who are struggling with inadequate retirement income or savings.  Job losses, issues with schools, child care, working from home and reduced hours or income from younger families are also being stretched.

Unfortunately, the conventional wisdom is that many jobs in the airlines, hospitality, and restaurants will be cut and not come roaring back.

Yes the middle class benefits from tax breaks related to real estate.  The wealthy benefit even more from tax breaks related real estate as do churches and colleges.  The entire tax code needs to be revised regularly and transparently to be more equitable.