Richest Americans Tax Avoidance – The Shocking Details of the Shock Report | Inequality



TIt is nothing new that much of the wealth remains in the hands of already wealthy people. Income inequality in the United States has increases since the 1980s, far surpassing that of the UK and other G7 countries; high income families have increases their share of the country’s overall income during the same period while middle-income households lost theirs proportionately; and three of the richest men own so much like the poorest 50% of us.

But something about the new report by nonprofit investigative journalism organization ProPublica, which reveals just how richest 25 people in America – including Amazon founder Jeff Bezos, Berkshire Hathaway chairman Warren Buffett, and Tesla CEO Elon Musk – paying taxes while simultaneously building their already unfathomable personal wealth, is breathtaking.

Perhaps it’s the fact that we actually see precise numbers attached to names and faces, rather than a “rich and obscure elite paying no taxes” in the abstract. Either way, it’s shocking again.

I read the report to discover the most glaring details of what we learned from the 25 richest Americans:

  • Jeff Bezos, whose net worth is currently valued at over $ 190 billion, paid no federal income tax in 2007. The value of shares in his company, Amazon, more than doubled that same year.

  • Bezos also did not pay federal income taxes in 2011.

  • That same year, he allegedly claimed a $ 4,000 tax credit for his children.

  • Warren Buffet, meanwhile, only paid 0.1% for every $ 100 he added to his fortune between 2014 and 2018 – while still being very vocal support raise taxes for wealthy Americans like him.

  • George Soros, the billionaire investor, was also a strong supporter to increase the amount that wealthy Americans like him are taxed, yet the ProPublica report shows he has paid no federal income tax for three consecutive years.

  • When contacted for comment, a representative for Soros explained that the reason he didn’t pay was because he lost money on investments. The representative then doubled down Soros’ support for “higher taxes for wealthy Americans,” which rings somewhat hollow given the facts.

  • Michael Bloomberg, the businessman and former New York City mayor, also did not pay federal income tax in a recent fiscal year. In 2018, Elon Musk, the second richest person in the world, also did not pay federal income tax.

  • Bloomberg additionally only paid $ 70.7 million of its 2018 net income of $ 1.9 billion after claiming numerous deductions.

Zoom in a little deeper and you’ll find that those 25 people earned a combined income of $ 1.1 billion in 2018 – the same amount as 14.3 million “ordinary Americans” combined, observes ProPublica. The organization also notes that the first group, the Rich 25, paid $ 1.9 billion in federal income tax that year. The latter group, the 14.3 million ordinary workers, paid 143 billion dollars.

Since the ProPublica report, Senator Elizabeth Warren has resumed her calls for a policy that tax wealth of rich Americans rather than just their annual earned income.



Source link

Previous Indonesian bonds crush Malaysian peers over budget divergence
Next Japan's Mizuho Bank CEO resigns after tech issues - Nikkei