Actor Depardieu's Belgium move "pathetic": French PM

Actor Gerard Depardieu's decision to establish residency in Belgium, which does not have a wealth tax, by buying a house just over the border with France, is "pathetic" and unpatriotic, French Prime Minister Jean-Marc Ayrault said on Wednesday. Depardieu has become the latest wealthy Frenchman after luxury magnate Bernard Arnault to look for shelter outside his native country following tax hikes by Socialist President Francois Hollande. "Going just over the border, I find that fairly pathetic," Ayrault said on France 2 television. "Being a Frenchman means loving your country and helping it to get back on its feet." The "Cyrano de Bergerac" star bought a house in the Belgian village of Nechin near the border with France, where 27 percent of the population is composed of French nationals, local mayor Daniel Senesael told French media on Sunday. Depardieu also enquired about procedures for acquiring Belgian residency, he said. Yann Galut, a Socialist member of parliament, condemned the actor and proposed that France copy U.S. practice by adopting a law that would force exiles to pay full tax dues or risk being stripped of their nationality. "It is scandalous and shameful," Galut told Reuters in an interview. "The country's in dire straits. This man owes everything he has to France - the accolades, the subsidies that helped produce his films, the schools where he was educated. At the end of a career that made him extremely rich he wants nothing to do with national solidarity." Belgian residents do not pay wealth tax, which in France is now slapped on individuals with assets over 1.3 million euros ($1.70 million), nor do they pay capital gains tax on share sales. France has also imposed a 75-percent tax on incomes exceeding 1 million euros. The tax hikes have been welcomed by left-wingers who say the rich must do more to help redress public finances but attacked by some wealthy personalities and foreign critics, who say it will increase tax flight and dampen investment. Depardieu's move comes three months after Arnault, chief executive of luxury giant LVMH, caused an uproar by seeking to establish residency in Belgium - a move he said was not motivated by tax reasons. The left-leaning Liberation daily reacted with a front-page headline next a photograph of Arnault telling him to "Get lost, you rich jerk", prompting luxury advertisers including LVMH to withdraw their advertisements. Ayrault said he did not support the idea floated by Galut, and the call was also partially disowned by the leader of the Socialist group in the lower house of parliament. "I'd rather appeal to people's intelligence, to their hearts," Ayrault said. Undeterred, Galut said tax dodging may be costing the state as much as 6 to 8 billion euros ($7.8 to 10.4 billion) a year in lost income and that such amounts were "far from negligible" at a time when France is at pains to reduce a bloated debt. "Everyone is being asked to chip in, private individuals and companies alike. It's inadmissible that people who made fortunes in France refuse to share their part of the burden," he said. Galut said he was asked on Wednesday to set up a parliamentary panel that would look into the question of tax exiles, saying he would like to see action taken when parliament broaches a budget bill for 2014.

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Mick Jagger love letters fetch $300,000 at auction

A collection of love letters written by Rolling Stones frontman Mick Jagger to American singer Marsha Hunt, believed to be the inspiration for the band's hit single "Brown Sugar", sold at Sotheby's on Wednesday for 187,250 pounds ($301,000). The 10 letters, dating from the summer of 1969, had been expected to fetch 70-100,000 pounds, according to the auctioneer. "The passage of time has given these letters a place in our cultural history," Hunt said after the London sale. "1969 saw the ebbing of a crucial, revolutionary era, highly influenced by such artists as The Beatles, The Rolling Stones, James Brown and Bob Dylan. "Their inner thoughts should not be the property of only their families, but the public at large, to reveal who these influential artists were - not as commercial images, but their private selves." Hunt, with whom Jagger had his first child, Karis, told Britain's Guardian newspaper last month that she was selling the letters, written in July and August 1969, because she had been unable to pay her bills. "I'm broke," Hunt, who lives in France, told the newspaper. Jagger wrote them to Hunt while filming the Tony Richardson movie "Ned Kelly" in Australia. They showed a sensitive side of the then-young singer, who wrote about the poetry of Emily Dickinson, meeting author Christopher Isherwood and an unrealized multimedia project. Jagger's relationship with Hunt, who is African-American, was kept under wraps until 1972. Hunt has said she was the inspiration for Brown Sugar, which Jagger wrote while in Australia. The rock star also cites in the letters the disintegration of his relationship with singer Marianne Faithfull, whom he was also dating at the time, and the death of Rolling Stones' guitarist Brian Jones. There has been a surge in interest in the rock band this year, as Jagger and his three surviving bandmates celebrate the 50th anniversary of the Stones with a series of concerts, a photo book and a greatest hits album.

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Politico financier Joe L. Allbritton dies at 87

Joe L. Allbritton, the millionaire founder of Politico's parent company, died Wednesday of heart ailments in a Houston hospital. He was 87. The founder of Allbritton Communications, which launched Politico and owns several television stations, built the Washington, D.C.-based media empire after controversy-fraught years as the chief of Riggs National Bank. Born in Mississippi and raised in Texas, Allbritton was a self-made businessman, who dabbled in real estate, mortuaries and banking before entering the news business in 1974, when he purchased the struggling Washington Star newspaper. He revived the paper. Six years later, federal regulations regarding cross ownership of newspaper and television stations forced him to sell his $35 million investment. Time Inc. bought it for $217 million. Allbritton held on to his more lucrative media properties, including WJLA, an ABC affiliate in Washington, D.C. that took his initials, and helped launch NewsChannel 8, also in Washington, one of the country's first 24-hour news channels. The company he founded, which is now run by his son, Robert, has made inroads into the internet world - founding Politico in 2007 and TBD, a short-lived internet news site that the company shuttered in 2012. Though Politico is his son's creation, the elder Allbritton bankrolled the publication and has been accused of excessively involving himself in its editorial affairs. But, for all of Allbritton's successes and wealth, his career was marred by a nationwide recession in the early 1990s that Forbes magazine said brought the bank to the brink of insolvency. The economic slump left Riggs with bad loans on drastically devalued real estate, but Allbritton was also blamed by analysts for ignoring the growing suburban banking market which took business away from Riggs. Despite these woes, he refused to give up his private jet at Riggs, even as shareholders urged him to sell the Gulfstream. He was also criticized for his eagerness to do business with some shady customers He personally courted Chilean dictator Augusto Pinochet, whom human rights groups accused of killing more than 3,000 of his own citizens during his 17-year reign. And - in a 2001 letter to Teodoro Obiang Nguema, the dictator of oil-rich Equatorial Guinea - Allbritton praised the west African strongman's "reputation for prudent leadership." Obiang deposited hundreds of millions of dollars in banks controlled by Allbritton. But little of this criticism appeared in Politico's glowing, three-page obituary on its financier. The piece, bylined by editor-in-chief John F. Harris and reporter James Hohmann, makes a brief, passing mention of a federal inquiry into Allbritton's dealings with Pinochet. There is no mention of Obiang. The man, whom the Washington Post noted - in the headline of its obituary - led once-venerable Riggs to "disrepute" is praised by Politico with a laundry list of accomplishments. "He would wear Politico baseball caps and T-shirts while playing with his grandchildren. Sometimes, he would quiz executives at the company on business and editorial matters, sometimes pretending caustically to second-guess their decisions," Harris and Hohmann wrote of the former boss. "It took the publisher, adept at reading his father's sense of humor, to assure people that he was just kidding; his main involvement in the new publication was as cheerleader." It wasn't the only time Allbritton was accused of involving himself in Politico's coverage. In 2007, five months after the news agency's christening, Glenn Greenwald, then a columnist at Salon, accused Politico of having a conservative bias, pointing to Allbritton's appointment of Frederick J. Ryan Jr., a one-time assistant to President Ronald Reagan, as president and CEO of Politico. "There is nothing wrong per se with hard-core political operatives running a news organization. Long-time Republican strategist Roger Ailes oversees Fox News, of course," Greenwald wrote. "But it seems rather self-evident that a news organization run by someone with such clear-cut political biases ought to have a hard time holding itself out as some sort of politically unbiased source of news.

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Obama Wins 2012 Election: Why Your Taxes Are Going Up

When President Obama and the new Congress begin to tackle important legislation and federal policy in January, one of the key issues will be how to reform America's byzantine tax code. Obama campaigned on a platform to raise taxes on the wealthiest Americans, declaring that millionaires and billionaires need to "pay their fair share." The president proposed the highly controversial "Buffett Rule," which would make sure those individuals earning more than $1 million a year would pay at least 30% of their income in federal taxes. Related: Do the Rich Have a Moral Obligation to Pay Higher Taxes? Gov. Jerry Brown Says 'Yes' The top individual tax rate is currently 35% but few U.S. households and individuals actually pay that much; various tax deductions and loopholes reduce one's tax burden. According to the Obama campaign, the richest 400 taxpayers in 2008 (who each made more than $110 million that year) paid an average income tax rate of just 18%. In 2009 over 20,000 U.S. households with more than $1 million in income paid a federal tax rate of less than 15%. Obama has vowed to raise the top income tax rate for individuals to 39.6% and let the Bush-era tax breaks end for the highest income earners. The majority of Americans — those who are lower to middle class — could also see a 2% tax increase if Congress allows the temporary payroll tax holiday to expire at the end of the year. Related: Here's Why Your Taxes Are Going Up 2% Next Year: Just Explain It Nearly half of voters support raising taxes on incomes over $250,000, according to Tuesday night's exit polls. Len Burman, a professor of public affairs at Syracuse University and a co-founder of the bipartisan Tax Policy Center, believes higher tax rates play just a small role in resolving the nation's budget woes. "In the long term [Obama] is going to need to raise taxes on more than just the rich," Burman says in an interview with The Daily Ticker. "The budget problem isn't going to be solved without broader-based tax increases, preferably done in the context of tax reform and also serious entitlement reform. We're not going to be able to solve this on the tax side alone." Burman, who recently co-wrote the new book "Taxes in America: What Everyone Needs to Know," says tax rates do not need to be raised for any income group if Congress and the White House would agree on one simple change: raising the capital gains rate, i.e. the profits from the sale of an investment. Assets, such as stocks, art or real estate, that are held for at least a year are currently taxed at a special 15% rate; Obama wants to raise that to 20%. "The problem with a low tax rate on capital gains is not that it allows Mitt Romney and Warren Buffett to pay very low taxes but that it creates this huge opportunity for tax sheltering," he notes. "There's a whole industry that's devoted to coming up with these schemes. [Raising capital gains rates] could make the tax system more progressive and allow for lower tax rates" and a reduction in the deficit Burman says. Obama's tax proposal also targets the Alternative Minimum Tax, the Estate Tax and as well as many personal tax credits and itemized deductions. Obama would make permanent the 2007 AMT patch and index it for inflation. He would raise the estate tax to 45% from 35% on estates worth more than $3.5 million. He would lower the corporate tax rate to 28% from 35% and provide a refundable $3,000 credit per added employee for companies that expand their workforce. He would tax carried interest as ordinary income. Related: Corporate Tax Loopholes=Corporate Socialism: Pulitzer Prize Winner David Cay Johnston A divided Congress refused to compromise with Obama during his first term and could very well dismiss the president's tax reforms for the next four years. Republicans are loathe to raise taxes by even a penny and Obama has said he would veto any budget bills that did not include tax increases. Neither party wants to raise taxes in a weak economy. But the options available for reducing the deficit and generating new revenue are few and far between.

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Has Obama Been Good for Millionaires?

The question of whether Americans are better off than they were four years ago depends, of course, on the American. For the 12 million unemployed, the answer is most certainly no. But for many of America's millionaires, the answer may be more affirmative. A new study from WealthInsight, the London-based wealth-research and data firm (and yes, they are non-partisan), showed that the United States added 1.1 million millionaires between Jan. 1, 2009 and the end of 2011, the latest period measured. There were 5.1 million millionaires in America at the end of 2011, compared with around 4 million at the end of 2008. That works out to more than 1,000 millionaires a day under the Obama administration. (They defined millionaires as people with total net worth of $1 million or more, excluding primary residence). (Read more: Rich Will Spend More Under Romney: Poll) "It's true that Obama has been good for millionaires, at least in absolute terms," said Andrew Amoils, analyst at WealthInsight. "He certainly hasn't been bad for millionaires." Amoils said that quantitative easing and financial bailouts especially helped the finance sector, which accounts for the largest share of millionaires. It also helped that markets recovered in 2009. The timeframe is worth noting. Measured against the 2007 peak, when 5.27 million Americans had a net worth of at least $1 million, the nation lost 165,360 millionaires. Their combined wealth is down six percent, to $18.8 trillion from a peak of more than $20 trillion in 2007. We don't know how 2012 will turn out, though if stock markets continue to strengthen, the millionaire count for 2012 is likely to increase. Wealth Insight says the number of millionaires in America will grow to more than six million by 2016, and their combined fortunes will jump 25 percent over the same period. (Read more: Millionaires Give Nine Percent of Income to Charity) Where did all the millionaires come from between 2008 and 2011? Mainly from retail, tech and finance -- and in both blue and red states. Of the sectors adding the largest number of people worth $30 million or more, the retail, fashion, and luxury goods sector ranked first. That was followed by energy and utilities, then tech, telecoms and finance. Transportation and construction saw the biggest drops. The number of people worth $30 million or more grew 26 percent in Connecticut since 2008, 20 percent in Kansas, 12 percent in Michigan, showing that the wealth creation was nationwide.

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Disney buying Lucasfilm for $4.05 billion

LOS ANGELES (AP) — Disney is paying $4.05 billion to buy Lucasfilm Ltd., the production company behind "Star Wars," from its chairman and founder, George Lucas. It's also making a seventh movie in the "Star Wars" series called "Episode 7," set for release in 2015, with plans to follow it with Episodes 8 and 9 and then one new movie every two or three years. The Walt Disney Co. announced the blockbuster agreement to make the purchase in cash and stock Tuesday. The deal includes Lucasfilm's prized high-tech production companies, Industrial Light & Magic and Skywalker Sound, as well as rights to the "Indiana Jones" franchise. Disney CEO Bob Iger said in a statement that the acquisition is a great fit and will help preserve and grow the "Star Wars" franchise. "The last 'Star Wars' movie release was 2005's 'Revenge of the Sith' — and we believe there's substantial pent-up demand," Iger said. Kathleen Kennedy, the current co-chairman of Lucasfilm, will become the division's president and report to Walt Disney Studios Chairman Alan Horn. Lucas will be creative consultant on new "Star Wars" films. Lucas said in a statement, "It's now time for me to pass 'Star Wars' on to a new generation of filmmakers." The deal brings Lucasfilm under the Disney banner with other brands including Pixar, Marvel, ESPN and ABC, all companies that Disney has acquired over the years. A former weatherman who rose through the ranks of ABC, Iger has orchestrated some of the company's biggest acquisitions, including the $7.4 billion purchase of animated movie studio Pixar in 2006 and the $4.2 billion acquisition of comic book giant Marvel in 2009. Disney shares were not trading with stock markets closed due to the impact of Superstorm Sandy in New York.

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US economic growth improves to 2 pct. rate in Q3

WASHINGTON (AP) -- The U.S. economy expanded at a slightly faster 2 percent annual rate from July through September, buoyed by an uptick in consumer spending and a burst of government spending. Growth improved from the 1.3 percent rate in the April-June quarter, the Commerce Department said Friday. The pickup in growth may help President Barack Obama's message that the economy is improving. Still, growth remains too weak to rapidly boost hiring. And the 1.74 percent rate for 2012 so far trails last year's 1.8 percent growth, a point GOP nominee Mitt Romney will emphasize. The report is the last snapshot of economic growth before Americans choose a president in 11 days. The economy improved because consumer spending rose 2 percent in the July-September quarter, up from 1.5 percent in the second quarter. Spending on homebuilding and renovations increased more than 14 percent. And federal government spending expanded sharply on the largest increase in defense spending in more than three years. Growth was held back by the first drop in exports in more than three years and flat business investment in equipment and software. The economy was also slowed by the severe drought this summer in the Midwest. That sharply cut agriculture stockpiles and reduced growth by nearly a half-point. The government's report covers gross domestic product. GDP measures the nation's total output of goods and services — from restaurant meals and haircuts to airplanes, appliances and highways. The first of three estimates of growth for the July-September quarter sketched a picture that's been familiar all year: The economy is growing at a tepid rate, slowed by high unemployment and corporate anxiety over an unresolved budget crisis and a slowing global economy. While growth remains modest, the factors supporting the economy have changed. Exports and business investment drove growth for most of the recovery, but are now fading. Meanwhile, consumer spending has ticked up and housing is adding to growth after a six-year slump. Consumer spending drives nearly 70 percent of economic activity. Businesses have grown more cautious since spring, in part because customer demand has remained modest and exports have declined as the global economy has slowed. Many companies worry that their overseas sales could dampen further if recession spreads throughout Europe and growth slows further in China, India and other developing countries. Businesses also fear the tax increases and government spending cuts that will kick in next year if Congress doesn't reach a budget deal. Since the recovery from the Great Recession began in June 2009, the U.S. economy has grown at the slowest rate of any recovery in the post-World War II period. And economists think growth will remain sluggish at least through the first half of 2013. Some analysts believe the economy will start to pick up in the second half of next year.

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