So how did Jack Benny pull it off (pay wall)
Did it have something to do with Rochester? ha ha
You do know about outline, don't you. FReepers should all be hep to Outline.com. Copy and paste the url.
Armed Robber confronting Jack: "Your money or your life!
(A moment's hesitation) "Come on, come on..."
Jack: "I'm thinking, I'm thinking!"
Article says it was easy to convert income into capital gains taxed at 25% - and thereby Benny saved about $800,000 on one $2 million deal.
When the personal rates were 70-90% back in Jack Benny’s day, most of the highly-paid performers used what was known as “loan-out corporations” which were basically personal holding companies (which technically were highly taxed in of themselves). The revenue earned by the performers was contractually the recipient of the performers’ from the revenue source, and the performer only withdrew what cash was needed to live on.