The very wealthy often pay very little.
By Daphne Chen Producer, Opinion Audio |
As Celine Dion once sang, there are two inevitabilities in life: rain and taxes. |
That is, unless you're one of the 25 wealthiest people in the United States. |
I've always assumed the ultrarich were getting away with tax loopholes, but last week's ProPublica report exposed that the wealthiest echelon regularly build and borrow against their net worth without treating it as income, and thus pay even less in taxes than many of us might have imagined. |
According to the report, Jeff Bezos — the richest person in the world for four years running — paid $0 in federal income taxes in 2007 and 2011, and Elon Musk also paid $0 in 2018. |
This practice is perfectly legal. And the system allows the ultrarich to amass unchecked wealth and power while the rest of us fork over up to 37 percent of our income annually to the federal government. |
As Eisinger puts it, the idea that everyone pays their fair share is kind of a "founding myth" of the country. "And what we wanted to say is it's as mythical as George Washington cutting down the cherry tree," he tells Kara. "It doesn't exist." |
Eisinger isn't optimistic about real change to the tax system, despite the outrage caused so far by these revelations, and despite President Biden's push to raise the top marginal tax rate from 37 percent to 39.6 percent (which Kara notes is like "using a fly swatter to kill a bear"). |
Frankly, I'm not optimistic either. Sorry, Celine, we'll have to agree to disagree on this one. |
Here's what we're focusing on today: |
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