News: "In Music, It's Made More Sense For Record Companies To Keep Artists In Debt"
Thursday, Dec 8, 2011 10:02AM
With high profile hip-hop artists making monthly headlines for run-ins with the law due to financial woes, Atlanta's Killer Mike has offered some insight on the connection between rappers and debt.
In addition to suggesting hip-hop artists come up with legal side hustles, Mike offered his take on rappers having so many problems with the IRS.
"It's not in record companies' interest to make you financially independent," he says, laughing at the gallows humor. "They don't have a vested interest in doing it. The NBA and NFL do have a vested interest in it, because they need your Black a** to stay out of jail, so you could run the ball. But traditionally, in music, it's made more sense for record companies to keep artists in debt, therefore keeping them putting out art when needing a record, publishing deal, things of that nature. The most financially literate [thing] I can advise any young artist to do is look at your immediate surroundings, while you're still poor, and figure out what business doesn't cost much for start-up that you use on a daily basis." (XXL Mag)
Earlier this year, rap star Lil Wayne's $5.6 million tax debt records leaked online.
Platinum-selling hip-hop star Lil Wayne is in town tonight, live at the Palace. Don't be surprised if the IRS is waiting backstage to collect on a brand new $5.6 million tax bill. The IRS filed the enormous tax lien against him Monday in Miami. The IRS filed a $5,610,034 tax lien against Carter on March 28 with the Miami-Dade County Clerk. According to the lien, which you can see below, he owes income taxes from 2008-09. (Detroit News)
Roc-A-Fella Records co-founder Damon Dash recently addressed being millions in debt to the government.
"I owe way more than $2 million in taxes," Dame explained in an interview. "That must've just been the IRS -- Nah, nah, I'm f---ed up...It's the price of business; it is what it is. I owe taxes: I got to pay...They're auditing me. When you're a business man, you have a lot of businesses, a lot of times they think you're launderingmoney or you're pretending you're writing things off that you don't -- I'm a true businessman. As you know, I believe in my independence, I have no partners, so every dollar I make goes right back into every business I have." ("Sway In The Morning")
In October, reports emerged online relating to rapper Young Buck's money woes.
"At this time, because no agreement has been reached with G-Unit and Curtis Jackson regarding either assumption or rejection for the recording agreement and/or the publishing agreement, the first amended plan cannot be confirmed," Chapter 11 trustee Jeanne Burton said in court papers filed last week. "The trustee believes and therefore asserts that there is no reasonable likelihood of reorganization at this point." Further hurting Young Buck's case, Burton said, is the misappropriation of some of the rapper's funds. The trustee said that during the bankruptcy, she became aware that "a former acquaintance" of the rapper had his performance or appearance fees wired to an unauthorized bank account opened for one of Young Buck's companies. Unauthorized payments were then made from this account, Burton said, and haven't been recovered while the whereabouts of that former acquaintance remain unaccounted for. (Wall Street Journal)
Check out some recent Killer Mike footage below: