According to a report, billionaires like Musk, Buffett, Bezos take advantage of the flaws of the American tax system and collect negligible tax.
The maximum tax rate in the US at present is 37 percent.
You will be surprised to know that American billionaires pay negligible tax to the government there. In a report published in the Economic Times, ProPublica has been quoted as saying that between 2014-2018, America’s top-25 billionaires paid very little tax. According to the report, the income of these billionaires stood at $ 401 billion, while they have deposited only $ 13.60 billion in the name of tax.
According to this report, there is a lot of inequality in the tax system in America. Billionaires there such as Jeff Bezos, Elon Musk, Warren Buffett, Michael Bloomberg have been taking advantage of the flaws of the tax system there. After assuming power, the Joe Biden administration is considering changes to the tax code. The Biden administration wants to raise the maximum tax rate on rich people and corporates from 37 percent to 39.60 percent.
2% wealth tax proposal
US Senate Elizabeth Warren proposed a 2 percent wealth tax on the wealthy. Under this, a wealth tax of 2 percent will be levied on people whose net worth is more than $ 50 million. However, the Biden administration believes that this system will not be able to work properly. Elizabeth Warren tweeted that our tax system is rigged with billionaires because they do not make their fortune with the help of income.
Jeff Bezos paid zero tax
Let us tell you that in 2007, Jeff Bezos did not deposit anything in the form of federal income tax, while the value of his company’s stocks doubled. Four years later, his net worth reached $ 18 billion. According to ProPublica, Jeff Bezos took a tax credit of $4000 from the government citing damages. He took this credit for his children.
Warren Buffett collected only $23.7 million in taxes between 2014-18. His wealth increased by $ 24.30 billion during this period.
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