Cohen: Tax authories out of touch

"People accept that Bill Gates made a ton of money because he has a real product," Becker said. "When somebody makes it from a hedge fund, it's harder for people, including myself, to accept. But as an economist I have to say, O.K., these guys are managing a lot of capital, and if they get some of the value they create, that is what the market is telling us."

Where Becker balks, and I balk too, is at the fact that in the United States, fabulous wealth creation has been unmatched by improved education. Teaching that will get you recognized in a globalized world is denied minority kids in failing schools.

"The proportion of American children not completing high school - around 25 percent - has scarcely changed in recent decades. Hedge-fundocrats and their private equity cousins should consider ways to pile money into ending this national failure.

Where I also balk is at tax treatment that allows many of the ultra-rich to pay 15 percent capital gains tax in the United States on much of their earnings, rather than the top income tax rate of 35 percent, and the global ultra-rich buying up London to sidestep many taxes, including stamp duty.

Tax authorities in the United States and Britain resemble dinosaurs pursuing space ships. They have lost touch with the super-rich, as has most of humanity.

Peter Mandelson, the EU Trade Commissioner, once gave Americans this clue to Britain's New Labour: "We are intensely relaxed about people getting filthy rich."

He did add, however, that the filthy rich should pay their taxes. That would be a start, some consolation for upper-losers, workers and the rest."

Hilton goes back to jail

When she is sprung in 45 days, she will still be rich.

I am sure this saga will continue...

Hilton Released: To be rich in America

I am home today because my security system in my car is acting goofy. My mechanic had to call in a "security specialist." The thought is scary, yet amusing.

The Breaking News is young Ms. Hilton was released to house arrest to finish out her sentence. Judging from what wasn't said at the press conference, Hilton no doubt threw a temper tantrum, threatened to hurt herself and finally held her breath.

After annoying all of the adults involved, the compromise was the "house arrest" crap. If she wasn't the celebrity brat, this would not be news.

I would love to be confined to Ms. Hilton's home for 40 days. I am not sure which is more annoying, what happened or the MSM making it a priority.

Aren't we at war?