Almost No Income Tax Is Being Paid by US Super-Rich Persons
Biden Plans to Increase Tax on Wealthy Americans To Raise Money for His Infrastructure Investment Program and Improve Equality
There have been several details that claim to reveal the almost no income tax amount paid by some of the top United States billionaires, and the information has been leaked recently to a news outlet website.
Tax evasion by wealthy Americans
According to ProPublica, it has been able to observe the tax returns of some of the richest individuals in the world, which includes Warren Buffet, Elon Musk, and Jeff Bezos. It has allegedly been stated by the website that the founder of Amazon, Jeff Bezos as paid almost no income tax in the years 2007 and 2011; meanwhile, no income tax has been filed by Elon Musk, the CEO of Tesla in 2018.
A spokeswoman from the White House has said that these leaked rumors are an illegitimate act as they have no authority to publicly post any alleged news of no income tax returns of any individual, while a thorough investigation is currently being conducted by the tax authorities and FBI.
ProPublica has stated that they have been analyzing something which is called a massive stockpile of Internal Revenue Service data on the amount of taxes given by the billionaires of the United States and would share further in-depth details over the upcoming weeks.
The claims are yet to be completely verified, but these alleged leaks of paying little to almost no income tax by billionaires have come out to the public at a very crucial time when there is a growing debate regarding the quantity of taxes that are currently being paid by the wealthy individuals that are widening the inequality.
ProPublica has also shed light on the alleged fact that the richest 25 American individuals pay less amount tax, about an average of 15.8% of the adjusted gross income than most of the United States mainstream working employees.
A senior reporter and editor working at ProPublica have told that individuals that are multi-billionaire have the astonishing capability to reduce the amount of their tax to almost no income tax. Paying zero in the form of tax returns has floored him after he heard the news. He also said that the ultra-rich people have the ability to completely evade the system in a completely legitimate way, as they have the ability to find required deductions, acquire credits and exploit the loopholes of the legal system of the country.
Meanwhile, the wealth value is able to grow in enormous amounts through becoming the owner of the shares of their own company, which is not recorded as a source of income, allowing them to pay no income tax.
Although there is even more than that, as the wealthy billionaires also take forceful tax deductions, mostly because they have borrowed the money to provide funding for their current lifestyles, he said that the billionaires of the United States usually buy an asset, build it up or likely inherit a massive fortune, and then borrow money against their enormous wealth. As because they do not realize any amount of gain or reduction in stock, they are unable to gain any proper source of income, which could easily be exempted from being taxed, allowing them to pay no income tax.
Later, these wealthy people borrow money from the bank at a relatively low rate of interest and live off from it, and after that, they are able to use the interest on that money for deduction from their incoming source of income.
Plans by Joe Biden
According to the website, the United States billionaires are currently using a perfectly legitimate strategy for paying no income tax, as many of these uber-rich have been able to shirk the amount of their federal tax bills to almost nothing or even zero, even after the amount of their wealth have increased over the last several years.
The rich people, along with some of the ordinary citizens, are able to decrease the amount of their income tax bills by making donations to charities or drawing money from the income of investment rather than income from wage.
ProPublica has used the data which was publicly posted by the Forbes magazine, and it stated that the wealth of around 25 of the top richest American individuals have collectively found to have rapidly surged by $401 billion from the year 2014 to 2018, but have only paid the amount of $13.6 billion in the form of income tax returns over that time period.