That Zsa Zsa is quite a gal!
The Curmudgeon alerts us to a report in the LA Times that Huffington Paid Little Income Tax:

TV commentator and author Arianna Huffington, who launched her campaign for governor with criticism of "fat cats" who fail to shoulder a fair share of taxes, paid no individual state income tax and just $771 in federal taxes during the last two years, her tax returns show.

Huffington, who released her tax returns for the last two years to The Times, lives in an 8,000-square-foot home in Brentwood above Sunset Boulevard that is valued at about $7 million. She socializes with many wealthy and prominent people.

But the returns show that at least for the last two years, her income was far outweighed by losses that she reported were incurred by Christabella Inc., the private corporation she owns and uses to manage her writing and lecturing business.
...
On her 2002 tax returns, Huffington reported Christabella's gross receipts of $183,000. But the corporation also reported expenses of $410,363, which the corporation was allowed to take as a deduction. The corporate tax returns show payments of $800 in state taxes in each of the last two years and no federal taxes during the same period.

The corporate expenses include the costs of research for Huffington's books and speeches as well as for travel, entertainment and rent. The corporation lists the Brentwood house as its address.
...
The net loss from the corporation — $259,549 — appears as an offset on Huffington's personal tax return. In addition, she carried over corporate losses from previous years of $2.49 million.

Beyond the losses generated by Christabella, the personal tax return for 2002 also shows wages and salary income of $79,866 and dividends and interest of $189. Set against that are deductions of $120,832. About half of that is for mortgage interest payments. Also included are $19,209 in medical expenses.

The net result was an adjusted gross income of negative $2.67 million last year, the returns show. She owed no federal income tax beyond the self-employment tax paid to Social Security — $771 over the two-year period.
...
"The average guy isn't able to wipe out the taxes on his wage income because he doesn't have millions of dollars in losses" from a private corporation, said Phil Holthouse, a partner in a Los Angeles certified public accounting firm.

For those in the know, owning your own business and taking the full measure of deductions can be very lucrative tax-wise. The only difficulty is that the Feds may decide you aren't really serious about running it as a profit making endeavor if you keep showing losses year after year. But things are looking up for Zsa Zsa, if not for the taxman:

She said 2003 will be much different, thanks to the publication of her bestselling "Pigs at the Trough," which criticizes corporate greed [nice touch! - CBP] and political corruption. In addition, she recently signed a contract to write a book about what she said is fanatical leadership in the Democratic and Republican parties. Under the contract she will receive at least $700,000 and could earn as much as $1 million.

Given the losses on Huffington's returns, however, Holthouse said she is unlikely to pay any significant taxes in the next few years even if her income increases substantially.

Chutzpah, thy name is Zsa Zsa.

There's much more by following the link, including ex-hubby Michael Huffington claiming she's using his sizeable child-support payments to subsidize her business.