Many Wealthy Americans And Corporations Pay Little To No Taxes At All
Why do many ultra-wealthy Americans and many of the most profitable corporations in the country pay very few or no taxes at all? In America now, the wealthiest one percent of Best tax agent all Americans hold a greater net worth than the bottom ninety percent combined. Our legislators are constantly establishing different ways to take money away from everyone every single tax period.
Quite a few wealthy Americans frame their net income in such a way that it comes from long-term capital gains so that they can lower their income tax. Capital gains and investment income are taxed at a lower rate than earned income. As Warren Buffett likes to mention, seeing that most of his income is from dividends, his income tax rate is less than the employees that clean his office.
Investment earnings are not subject to FICA taxes. As of 2013, Social Security taxes are only taken out of the first $113,700 of income. For the four hundred U.S. taxpayers with the greatest adjusted gross income, the effective federal income tax rate decreased from nearly thirty percent in 1995 to slightly below seventeen percent now. They also know, and can afford to use, some particularly intricate tax shelters.
Corporate Tax Abuses
In 1950, corporate taxes accounted for about 30 percent of all federal tax returns. In 2012, corporate taxes accounted for not even 7 percent of it all. Just what has changed that has allowed this to occur?
Companies expend more on lobbying than what they do on taxes. America’s Top Ten companies paid back an average tax rate of barely 9% in 2011. They use secret organizations, offshore tax havens and many other loopholes in our tax code to minimize their income tax burdens.
Thirty corporations had collective gains of more than 163 billion dollars in the three years from 2008-2010. Yet, the combined net tax liability of those companies was a negative 10.6 billion dollars. That’s right, I said negative. They were basically paid-off to steal from taxpayers. The United States is one of the greatest offenders worldwide when it comes to corporate secrecy.
The large Wall Street banks such as Goldman Sachs, JP Morgan Chase and Bank of America, are among the most unscrupulous companies. Among the top 10 businesses who eluded any serious taxation were Apple, Exxon Mobile, Chevron and IBM. Facebook made at least a billion dollars in 2012 and yet did not pay anything in federal or state income taxes.
Income Tax System Abuses