Tax bills of $1.5 billion are never fun for the recipient. First off, it’s a real logistical pain-in-the-ass to pay the IRS that much. And second, it’s ONE-POINT-FIVE-BILLION FUCKING DOLLARS.
The only good thing about a $1.5 billion tax bill is that it means you once made enough money to generate a $1.5 billion tax liability. Even this, however, is cold comfort for John Paulson. For thanks to Congress’ kindness towards people like himself, when it closed the loophole allowing people like himself to stow their winnings overseas tax-free in 2008—a year in and immediately prior to which John Paulson had many winnings indeed—it gave people like John Paulson an extra decade in which they did not have to pay the piper. That decade has gone somewhat less well for Paulson than the preceding decade, and so now not only does a $1.5 billion tax bill represent a much more substantial portion of his net worth than it did a decade ago, it is also a reminder of the fact that he hasn’t come anywhere near generating a $1.5 billion tax liability in the last 10 years. And worse, while others celebrate the windfall of the new tax break that is his president’s only notable accomplishment, Paulson must bear the scorn of having potentially the biggest tax bill in American history at the same time that he’s losing money hand over fist.
Well, John, we have some good news for you: Yours, apparently, isn’t the biggest tax bill. That might well belong to Steve Cohen, who may have decided to go back to work just to pay off the damned thing.
Cohen pulled out close to $3 billion from his Point72 Asset Management for taxes. But he also raised about $3 billion early this year after reopening to outside clients following a Securities and Exchange Commission ban…. A Point72 spokesman declined to comment on the tax bill.