Lanai, a tiny resort island in Hawaii, has 18 miles of secluded beaches, no traffic lights and a population of just over 3,000. This summer, Larry Ellison, the CEO of Oracle, a California-based software company, bought 98% of the island for a sum reported to exceed $500m.
The Institute for Policy Studies, a Washington DC thinktank, says that a chunk of the money Ellison spent buying Lanai should have paid for elementary school teachers and clean energy jobs, instead of fulfilling the billionaire CEO's vacation fantasies. That's one conclusion of their new report, "The CEO Hands in Uncle Sam's Pocket: How Our Tax Dollars Subsidize Exorbitant Executive Pay", which points out that Oracle took advantage of a 1993 loophole in tax law to designate $76m of Ellison's income as "performance-related pay", which allowed him to avoid paying any taxes on the money.
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