Sand
Footballguy
These folks are taking advantage of capital losses and interest expense on debt, for the most part. These are absolutely available to all. Both of those are deferral techniques, so eventually there will be some big bills come due.They are available to everyone in the sense that "once you hit X, you can take advantage of this loophole", sure. Practically, they aren't. Never have been. That's by design.
Replace income tax rates with capital gain rates and you're about there.Why not institute higher marginal tax rates? I'm not talking about going from 37% to 39%, I'm talking about having 25+ brackets that make their way up to the 90% range as income increases.
BTW, I find the Propublica article to be a bit disingenuous:
"His tax avoidance is even more striking if you examine 2006 to 2018, a period for which ProPublica has complete data. Bezos’ wealth increased by $127 billion, according to Forbes, but he reported a total of $6.5 billion in income. The $1.4 billion he paid in personal federal taxes is a massive number — yet it amounts to a 1.1% true tax rate on the rise in his fortune."
Wealth <> income. He held Amazon stock without selling. When he sells it, then he gets hit with cap gains taxes. So this comparison is specifically designed to provoke an emotional response than presenting data in a robust manner. Very disappointing. There was more than enough in here on they tax rate vs. income to show what these folks were doing to shield themselves from taxes. I suspect there was a lot of business expensing and a bunch of stock based debt. These folks can take a loan against their stock and actually get a tax benefit with the interest expense against that debt. This is a bit of a loophole, but again only defers taxes as the stock will end up being sold at some point and generating a tax liability.
(BTW, Newsome has been documented doing the same thing with the loans to fund a tax light lifestyle).
Also, Wyden has promoted a plan to tax unrealized capital gains every year. Even though this would help even out the taxation on these ultra rich folks, it's overall a miserably bad idea.
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