Jeff Bezos, Elon Musk, Michael Bloomberg and George Soros enter the tax office. None of them paid a dollar of income tax. This sounds like a very bad joke, but in the past few years, it has been true.
In other words, the US non-profit research portal ProPublica revealed according to the tax report that it saw that these billionaires paid completely zero income tax in the past ten years.
>> Billionaires such as Bezos, Musk and Soros have not paid income tax for many years?
ProPublica’s big report should be only the first in the series. It mentions the 25 richest Americans according to Forbes magazine and reveals the methods they use to evade full taxes.
Therefore, as the founder, co-owner and CEO of Amazon (he will leave next month) and officially becoming the second (until recently the first) richest person in the world, Bezos has not paid one. Federal income tax on US dollars. In 2007 and 2011, even though he was already a billionaire. Bezos currently has a fortune of 189.1 billion US dollars.
Musk is the founder, co-owner and CEO of Tesla. He is currently the third richest person in the world ($152 billion), but he did not pay a dollar in taxes in 2018.Bloomberg’s founder, CEO and major shareholder, the former mayor of New York, the 20th richest man in the world, or the 13th richest man in the United States ($59 billion), have also paid at least a zero-dollar tax in the past few years. Paragraph, wrote Public Broadcasting Corporation.
Soros is an investor and political philanthropist with a fortune of US$8.6 billion (305th in the world). From 2016 to 2018, he did not pay a US dollar in taxes for three consecutive years.
ProPublica wrote that their and other wealthiest American tax returns broke the basic myth of the U.S. tax system: everyone paid a fair share, and the richest paid the most. On the contrary, the actual tax rate they eventually paid, according to the analysis of the portal, was much lower than the tax rate paid by ordinary American households, which had an annual income of $70,000 and the federal tax rate was 14%.
Billionaires use a tax avoidance strategy that is simply not available to ordinary citizens. In other words, their wealth mainly comes from the value of the stocks and other securities, real estate and other assets they own, and the increase in the value of these assets is not regarded as taxable income by U.S. law, regardless of how their estimated wealth increases by dozens of them every year. Billion or tens of billions of dollars. Only when these super-rich people sell their stocks and other assets do they have to pay taxes on their income.
In addition, billionaires often report financial losses, just like other tax deductions under the law, they reduce or completely eliminate annual income tax bills. According to reports, as the New York Times revealed last year, former president and real estate mogul Donald Trump has avoided paying federal income tax for 10 of the past 15 years.
>> New York Times: Trump has not paid income tax in 10 of the past 15 years
Among other things, billionaires avoid taxes by using their assets (such as real estate or stocks) as collateral or collateral loans. Therefore, they provide themselves with working capital without selling their property, and they should pay taxes for this. However, the interest paid by the bank is lower than the state income tax, and the interest is also deducted from the tax. The richer you are, the more loans you can get. Although most ordinary citizens view loans as a necessary sin, super-rich people see it as an additional source of income—the IRS does not consider it as income.
Although the 25 richest Americans increased their wealth by a total of US$401 billion from 2014 to 2018, they paid a total of US$13.6 billion in federal income tax during these five years, which means the real tax rate that ProPublica said Only 3.4% average.
On the other hand, the income of the middle class or working class in the United States comes from work-and this income is taxed. This is why American middle-class households have an average net increase of about $65,000 in wealth during the same period. This is mainly due to the increase in home value and, to a lesser extent, retirement savings and other savings. At the same time, they paid almost the same amount of federal income tax-$62,000.