How the richest people on Earth avoid paying taxes | CNN Politics
June 8, 2021. Summarized by summa-bot.
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Here's a good one. Jeff Bezos, Michael Bloomberg, Warren Buffett and Elon Musk all walk into the IRS. But none of them, in various years, seem to have paid federal income taxes.
But none of them, in various years, seem to have paid federal income taxes.
Its first report (it promises more to come) is on the richest of the rich, who in certain years claim losses that can wipe out their income tax bills.
But that doesn’t mean it shouldn’t be a scandal that Bezos, the richest person on Earth – who has used his vast wealth to start a spaceship company that will take him into space, where he will also be the richest person – has in multiple recent years told the federal government he owed no income taxes, according to ProPublica.
ProPublica also reports that Musk, the second wealthiest human on Earth, whose wealth has grown many billions in recent years and who also has a passion project space company, told the government he owed no income tax in 2018.
Bloomberg and Buffett, who have both supported raising tax rates for the wealthy, have both had $0 income tax bills.
But his income was much lower – he reported $4. 22 billion and paid $973 million in income tax in those years.
They’ll pay less to the bank in interest than they would to the government in income tax.
“There’s a reason it’s called income tax,” he said.
“The reason is if, if you’re a poor person, a rich person, if you are Apple — if you have no income, you don’t pay taxes. ”
It’s also true that with so much of their wealth tied up in stock, they effectively pay tax through their companies; however, the corporate tax rate of 21% is far lower than the top rate of 37% on income over $523,000 for individuals.
President Joe Biden wants to raise both corporate tax rates and income taxes on the wealthy, although it faces a tough path forward in the US Senate, where the minority Republicans can block it.
Given the status these men have in society, the deference their wealth affords them and the fact many of them have publicized their opinions on tax policy – either endorsing or opposing higher income taxes, corporate taxes and wealth taxes, I respect ProPublica’s decision.