People in other countries often overestimate the power of the IRS based on hearsay, believing it to be incredibly formidable and untouchable. In reality, wealthy individuals in the US are constantly finding ways to avoid taxes, and the line between tax avoidance and tax evasion is very blurred. Even when tax evasion is detected, it usually just results in paying back taxes with penalties, and it's rare for someone to go to jail because of it. If the IRS were truly as omnipotent as some believe, how could it leave so many loopholes for the rich, or allow situations like Amazon's negative tax rate?
However, there is one situation where the IRS is indeed very "powerful": when it is used as a tool of authority. This is true not just in the US, but globally. Simon was reminded of a familiar scenario where tax, fire safety, and health inspections are all used to easily bring down a business.
In the US, one of the most famous cases involves the mob boss Al Capone, who couldn't escape the IRS's punishment. Many people misunderstand the reason behind this case. The issue wasn't that Al Capone committed tax evasion, but that the US government wanted to take down this overly arrogant mob boss, and the IRS was just a tool in that process.
Given how common tax avoidance and evasion are in the US, using the IRS in political power struggles often proves highly effective because it rarely fails to find something. For example, why did a certain real estate mogul, before and after becoming president, refuse to release his tax returns? Was it just about tax avoidance? If Amazon can publicly show a negative tax rate, what's the big deal if the avoidance methods are legal? The issue is that once the returns are made public, the media and political opponents would scrutinize them with a fine-tooth comb, magnifying the smallest flaws a thousandfold, let alone any significant discrepancies.
Now, the Levison Group, a company Simon plans to acquire, has found itself in a similar situation. The Westeros system has already gained control of certain assets belonging to that real estate mogul, but Simon has no intention of fully supporting him, preferring to keep him dangling. However, Simon is very optimistic about the future of the real estate industry, and for that, he needs other real estate companies as tools for expansion. The Levison Group is a prime target.
Acquiring this company would give the Westeros system a complete real estate development and management team and a large number of quality real estate projects. Additionally, this company could serve as a platform for further expansion into North America and overseas markets. So, when the Levison Group rejected his offer to buy shares, Simon applied pressure through their massive debt, intending to force the Levison family to yield.
But when the IRS suddenly stepped in, it seemed like they wanted to bankrupt the Levison Group altogether. The manipulation behind this incident was blatantly obvious. Francis Levison was arrested for a tax evasion issue involving less than $2 million in a transaction from three years ago. For a family with billions in assets, $2 million is a drop in the bucket. Under normal circumstances, the IRS wouldn't make such a fuss, usually just requiring back taxes and possibly a fine.
Now, not only was Francis Levison arrested, but the IRS also froze the Levison Group's bank accounts and plans to conduct a detailed audit of their financial records from the past five years. Given the Levison Group's already precarious situation, this would only make creditors more anxious to recover their money, pushing the old real estate company closer to bankruptcy.
Given the recent contacts between the Westeros system and the Levison Group, everyone naturally assumed this was Simon's doing. If word spread that Simon was driving a company to the brink of ruin just because they refused his offer, it would be very damaging to the Westeros system's reputation. Moreover, Simon had nothing to do with this and wasn't interested in taking the blame for someone else's actions.
Using the vast network of connections the Westeros system had established within the federal government, Simon quickly uncovered the truth. The incident pointed to the Southern Republican forces, specifically the Bush family. It wasn't hard for Simon to piece together the entire situation.
Florida often plays a crucial role as a swing state in presidential elections. Simon could see this, and as a political dynasty, the Bush family was certainly aware of it as well. Back in 1986, before George H.W. Bush ran for president, his second son, Jeb Bush, left the business world for politics, taking on the important position of Secretary of Commerce in Florida. Last year, he even attempted to run for governor. All of this was aimed at gaining an advantage in the race for the White House in this politically pivotal state.
In recent years, as Clinton's victory over the elder Bush secured the White House and the Westeros system's political influence grew stronger, the Bush family had made several covert moves against Simon, leading to a back-and-forth struggle between them.
If possible, Simon would prefer to stay out of politics altogether, but as the saying goes, "In the martial world, one cannot always act according to their will." In the 1980s, three famous Wall Street raiders—Ron Perelman, Carl Icahn, and Michael Milken—faced different fates. While Perelman and Icahn managed to avoid significant repercussions despite their notorious activities, Milken ended up in prison. There were many reasons for this, but a key factor was that Perelman and Icahn were both politically active and major donors behind many politicians, eagerly participating in various election activities.
Clinton's scandal with Lewinsky is well-known, but few notice that Monica Lewinsky was actually recommended for a White House internship by Ron Perelman. Although the outcome wasn't favorable, Clinton and Perelman were privately close friends. Both Icahn and Perelman had strong networks in Washington, whereas Milken, who had little interest in politics, had moved his bond department at Drexel Burnham Lambert to Los Angeles for a more comfortable lifestyle. As a result, during the late 1980s crackdown on Wall Street financial giants, Perelman and Icahn easily escaped unscathed, while Milken paid a steep price.
This serves as a warning.
If Simon were just a Hollywood filmmaker like Spielberg, he could do whatever he pleased. However, given the current size of the Westeros system, if Simon doesn't cultivate his own political power, he risks becoming a vulnerable target, a "fat lamb" for others to repeatedly attack.
A child holding gold in a busy market is bound to attract attention.
The Westeros system, which has grown to such a massive scale in just eight years, is the classic case of a child holding gold in a crowded market. However, if this child is surrounded by strong bodyguards who carry intimidating weapons, and the child himself even has a couple of grenades with a "take me on, and we'll both go down" attitude, most onlookers will quickly avert their gaze from the gold.
A weak nation and a weak people are the best environments for powerful oligarchs to thrive. Simon, who already believed in the inherent evil of human nature, recently read a Chinese book that further helped him break free from many past misconceptions.
The art of ruling from above isn't about giving others the best of everything in hopes of receiving a fair return.
Thus, Simon decided to meet with the Bush family face-to-face.
When the 71-year-old, semi-retired George H.W. Bush received Simon's secret invitation, he was genuinely surprised. Since the 1992 election, the two sides had been on opposing paths. In recent years, still resentful over his 1992 election loss and intent on paving the way for his sons' futures, Bush had orchestrated several covert actions, making Simon a prime target.
He had never expected to have any face-to-face meetings with Simon, so the invitation caught him off guard. After some careful thought, he wondered if this might indicate a complete change in direction on Simon's part.
Thus, the day after receiving the invitation, Bush secretly flew to Aspen, Colorado, a ski resort in the central US. As a former president, Bush was still under the protection of the Secret Service. These agents also served as a kind of surveillance. To keep the trip confidential, Bush had to go through some trouble. For a 71-year-old man, traveling from the warm southern state of Texas to Aspen, in the middle of winter, was no small feat.
Simon Westero probably wanted to see just how sincere they were, and Bush found this entirely understandable. Simon now had the standing to demand such respect.
It was January 20th, a Friday. Aspen, Colorado, is adjacent to Park City, Utah, where Simon had attended the opening of the Sundance Film Festival the day before. Though he was publicly staying at a snow-covered vacation villa in Park City, Simon quietly left early this morning with only a few trusted aides. Because some areas along the way had received snow, slowing down traffic, it wasn't until 2 PM that two ordinary cars, of different models, finally reached their destination. To avoid drawing attention, they didn't even stop for lunch.
The meeting took place in a very ordinary mountain cabin. Simon was accompanied only by Neil Bennett, with the other bodyguards left in the town. Bush also brought just two people. Compared to Simon's weary journey, Bush, who arrived by private plane, was much more comfortable. Simon could have flown privately as well but didn't want to leave any traceable flight records.
During Bush's presidency, he had extended various invitations to Simon, who had quickly risen to fame as a young entrepreneur, but Simon had always declined. This was their first meeting, yet both acted as if they were old acquaintances. After exchanging pleasantries, the two entered the cabin, leaving their aides to guard the door.
Inside, by a
lit fireplace, Bush had prepared a bottle of aged tequila, which he personally poured for Simon. After some more small talk, Bush, a seasoned politician, clearly aimed to gauge Simon's character through this face-to-face interaction. Simon, in turn, handled the situation with ease.
After a discussion of Simon's ventures in Ukraine, Bush finally asked, "Simon, is there something specific you wanted to discuss when you invited me here?"
Taking a sip of the authentic Mexican tequila, Simon looked at Bush and, without beating around the bush, said, "George, I just wanted to have a conversation with you to avoid any unnecessary conflicts between us in the future."
Bush narrowed his eyes slightly and replied, "But we've never had any conflicts."
Simon smiled, maintaining eye contact. "George, we both know the truth, don't we? I made my intentions clear during last year's midterm elections—I have no desire to overly involve myself in political affairs. Everything I do is for self-preservation, to ensure that my personal interests aren't infringed upon."
Bush hesitated for a moment and then pointedly asked, "And what about Florida?"
Simon responded directly, "That was my retaliation for the Kevin Mulhouse incident in Pennsylvania. George, while the Westeros system's political strategy is primarily defensive, I'm not the type to take provocations lying down. To prevent us from escalating our conflicts, I thought it best to meet with you in person."
Bush stared at Simon, considering his words carefully, before finally saying, "Simon, I need to see your sincerity."
Simon said, "I can have my people completely withdraw from Florida. Would that be sincere enough?"
Bush was taken aback by how easily Simon agreed, even suspecting it might be a trap. The tax investigation into the Levison Group had indeed been his doing, but he hadn't expected this move alone to make Simon Westero capitulate.
It didn't seem logical.
Sensing Bush's obvious suspicion, Simon continued, "As I just said, the Westeros system's political strategy is primarily defensive. I have no ambition to meddle excessively in Washington. So, that's my sincerity. In exchange, I don't want to see any further targeting of the Westeros system by Southern Republican forces. Oh, and as for the Levison Group farce, I'd like it to be over by next week."
Bush immediately responded, "Didn't you say you were giving up on Florida?"
"I am giving up my political plans in Florida, but the Levison Group is business. The Westeros system plans to increase its investment in real estate, and the Levison Group is a very suitable platform."
Bush fell silent, lifting his tequila to his lips. After a moment, he said, "Next week is unlikely. Simon, you need to understand that once something like this is set in motion, it's not easy to stop. At least give it half a month—the IRS has its reputation to consider."
"Then release Levison first."
"That can be done." Bush nodded, then looked at Simon and suddenly asked, "Do you think Clinton will be re-elected?"
"Of course."
"And what about 2000?"
Simon smiled and said, "As I mentioned, my focus is on Congress, to avoid meddling in the more sensitive presidential race. The 2000 election—that's your business."
"Simon, I think you'd be much better off on our side. You've seen how the Democrats are in complete disarray. The Republican platform aligns much better with the growth of the Westeros system."
"You're not wrong, George, but everyone needs to stick to their principles." Simon shook his head and added, "And while I primarily support the Democrats, that doesn't mean I won't maintain good relations with the Republicans. It may seem a bit opportunistic, but given my position, you know I have no choice."
Bush understood all too well.
The Westeros system had become colossal. After the recent stock price surge, the combined value of Cisco, AOL, Daenerys Entertainment, and Microsoft—key holdings of the Westeros system—had exceeded $300 billion. Many media outlets estimated Simon's personal net worth at $500 billion. That amount represented 7% of the US's 1994 GDP of $7.2 trillion, far surpassing the 1.5% share that the Rockefeller family's wealth held at its peak.
At such a level, maintaining a purely partisan stance was impossible.
Though they had reached a preliminary agreement, both sides knew this was just the beginning, and they would have to see how well each honored their commitments. But the outcome of this meeting was already a success.
The two men continued to chat for another hour, growing increasingly amicable, before finally parting on good terms.
Bush planned to stay in Aspen for the night. After the meeting, Simon, however, had no intention of spending the night there. He left in the early evening and didn't return to Park City until after 9 PM.
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