They can simply say they're not going to make Disney's bonds whole. And then charge them with racketeering and fifty years of income tax evasion.
Because that's what it was. Disney has money. Disney wants something built. RCID issues muni bonds to build thing for Disney. Disney buys all the bonds. RCID taxes Disney. Disney deducts these taxes from their corporate income taxes. RCID pays for thing to be built. RCID pays its bond holders. Disney's income from this bond is not taxable because it's a muni.
It's a tax shelter. Not a big one, but it does effectively allow them to sneak money past their liability in the two bolded steps.
RCID had responsibility over less than 40 square miles of land and yet had over a billion dollars in bond liabilities. BECAUSE IT WAS IN DISNEY'S INTEREST to maximize the amount of money RCID owed it.
Which is why they don't have to say that.
They can simply say they're not going to make Disney's bonds whole. And then charge them with racketeering and fifty years of income tax evasion.
Because that's what it was. Disney has money. Disney wants something built. RCID issues muni bonds to build thing for Disney. Disney buys all the bonds. RCID taxes Disney. Disney deducts these taxes from their corporate income taxes. RCID pays for thing to be built. RCID pays its bond holders. Disney's income from this bond is not taxable because it's a muni.
It's a tax shelter. Not a big one, but it does effectively allow them to sneak money past their liability in the two bolded steps.
RCID had responsibility over less than 40 square miles of land and yet had over a billion dollars in bond liabilities. BECAUSE IT WAS IN DISNEY'S INTEREST to maximize the amount of money RCID owed it.