It is no surprise that the wealthiest Americans get a consistently discredited theory that if we give more tax breaks to rich people, they will give the rest of us more generously and the country will be more prosperous.
In 2017, Donald Trump even cut it down to a whopping 21%.
But thanks to the legislation that generously elaborates Loopholes, those who should pay even that 21 percent get away with not having to part with a single penny.
For the past 20 years, CEOs have dealt with a average increase 350 times more than their employees.
According to a recent watchdog from the Treasury report, the IRS couldn’t raise more than $ 38.5 billion from taxpayers who earn over $ 200,000 annually and more than $ 2.4 billion from those who earn over $ 1.5 million.
The pandemic only made it worse.
According to last year’s Americans for Tax Fairness and the Institute for Policy Studies analysisAmerican billionaires’ wealth grew on average $ 42 billion a week the COVID-19 pandemic has turned us upside down more than $ 700 billion total since March 18, 2020, the date the analysis indicates as the first official day of the pandemic emergency.
Now we have one more report, of ProPublica, Reveals Leaked IRS Tax Returns Showing Between 2014 and 2018 That The 25 Richest Americans Are A $ 400 billion Stroke of luck with payment of a 3.4% tax rate.
Jeff Ernsthausen, Senior Data Reporter at ProPublica, this week in an interview with Democracy now!:
“Typical wage earners like you or me pay taxes every time we get a paycheck. But for the ultra-rich it’s a completely different story. “
Characters in this story include Berkshire Hathaway billionaire Warren Buffett, who famously lamented the fact that he pays for it lower tax rate than his secretary.
Unless his secretary paid less than 0.1%, that’s true.
As Jeff Ernsthausen explained:
“Warren Buffett is one of the best examples of how this works. So Berkshire Hathaway is known to not pay a dividend. And because of that, Warren Buffett’s income as a major Berkshire shareholder is relatively low each year for someone with as much money as him. And so, in the five years that we focus on our history, his fortune has skyrocketed tens of billions of dollars and he has paid millions in taxes. And that’s because his company is structured in such a way that he never actually realizes these profits in the way the US tax system recognizes. “
His wealth has exploded $ 24 billion.
According to the ProPublica Report, Bezos paid no federal income tax 2007 or 2011.
Jeff Ernsthausen added:
“The example of Jeff Bezos is a good example to illustrate this. Between 2006 and 2018, his net worth grew by nearly $ 130 billion. During that time, he paid on the order of $ 1.4 billion in taxes, which sounds like a lot, but it’s nearly 1% of the amount that made his fortune soar. And so in a few years he had a very – you know, a very low income and therefore paid almost nothing in taxes and in a few years nothing at all.
The richest people in America don’t pay any income taxes.
Warren Buffett 0.10%
Jeff Bezos: 0.98%
Elon Musk: 3.27%
Ordinary Americans pay 20% +. It’s just amazing how manipulated the system is. Let’s fix it.
– Chris Murphy (@ChrisMurphyCT) June 8, 2021
George Soros-right-wing hate mediaThe most popular “democratic mega-donor” paid no federal income tax for three years in a row.
This is equivalent to paying a of 3.7% tax rate.
Investor Carl Icahn could Avoid federal income taxes in 2016 and 2017 by deducting substantial interest payments on the debts of his companies.
“TMore needs to be done here to ensure that companies, the highest income individuals, are paying more of their fair share. Hence it is in the President’s proposals. His budget and part of how he wants to pay for his ideas will continue. “
Warren’s bill includes a provision granting an additional $ 100 million to the Internal Revenue Service (IRS), require a 30 percent minimum exam rate for taxpayers and create one 40 percent tax on $ 50 million net worth for people giving up US citizenship to avoid payments.
Elon Musk would owe it $ 4.6 billion and still have over $ 148 billion at the end of the year.
Bill Gates would have to pay $ 3.6 billion.
Facebook boss Mark Zuckerberg, $ 3 billion.
Vt. Sen. Bernie Sanders explained:
“With the money these tax evaders owe, we could finance a fee-free college for everyone this year alone, eliminate the hunger for children, provide clean drinking water for every American household, build half a million affordable housing units, make masks available to everyone, produce the protective equipment and medical supplies our health workers need to fight this pandemic and fully fund the U.S. Postal Service. That is an absolute cheek and this report should lead us to look closely at what our national priorities are about. “
The rich will still be rich.
Unless there is progressive taxation, where the rich pay according to their wealth, they will not get rich in an increasingly poorer country.
Ted Millar is a writer and teacher. His work has been featured in countless literary magazines including Better Than Starbucks, Caesura, Circle Show, Cactus Heart, and Third Wednesday. He’s also contributing to The Left Place Blog on Substack, Liberal Nation Rising, and Medium.