🌱 The Secret IRS Files

The IRS records show that the wealthiest can — perfectly legally — pay income taxes that are only a tiny fraction of the hundreds of millions, if not billions, their fortunes grow each year

true tax rate of only 3.4%

Thats 10x less than tax rate on Americans making less than ~$650,000 a year

Federal budgets, apart from military spending, have been constrained for decades. Roads and bridges have crumbled, social services have withered and the solvency of Social Security and Medicare is perpetually in question

Ultra rich have seen extreme gains that are also non-taxable and allowed to grow while majority of the country is facing rising prices and stagnant wage growth. This is recipe for disaster.

the system works only as long as it’s perceived to be fair.

Hull warned, allowing industrialists to build a company and borrow against the stock to pay living expenses. Anyone could “live upon the value” of their company stock “without selling it, and of course, without ever paying”

I don’t think ultra rich folks are evil or that having this level of wealth is wrong. But I do see the tax system as broken and incentives and allows you to avoid it. The more money you have the easier it is to avoid.

Example

huge dynastic wealth is not desirable for our society -Warren Buffet

Yet he still continues as he does because the system incentives this not pulling wealth out as income and paying taxes

Should we not allow loans to ultra wealthy?

If you can avoid income, you can avoid taxes.