The tax code favors corporations, the wealthy
With inflation rising and the economy struggling, it’s time to bring fairness to our country’s tax system. Since the Supreme Court has ruled that “corporations are persons,” they must pay taxes like persons. Yet by sending profits overseas, companies like Google, Facebook and Apple often pay little or no federal tax.
The current tax code also favors wealthy individuals. ProPublica reported that billionaires like Jeff Bezos, Elon Musk and Warren Buffett pay little income tax compared to their enormous wealth. In 2021, economics researchers at Carnegie Mellon and other institutions found that the top 1% of people were not reporting nearly 20% of their income.
In October 2022, the IRS released a report showing that the estimated gross tax gap – the difference between taxes owed and taxes paid – increased to $496 billion. Unsurprisingly, audits on revenues over $1 million have dropped 71% since 2010, according to the Center on Budget and Policy Priorities, due to a 19% cut in the IRS budget.
Finally, wealth managers are helping their clients circumvent inheritance taxes that are supposed to correct this income imbalance by taxing the assets that the wealthiest Americans accumulate during their lifetime.
The Inflation Reduction Act created a minimum tax rate of 15% for corporations with at least $1 billion in revenue. It also pays $80 billion in new funds to the IRS to help enforce laws against fraudulent millionaires and billionaires. It’s not enough.
Buffett was quoted saying, “My friends and I have been pampered long enough by a billionaire-friendly Congress. It’s time for our government to take the shared sacrifice seriously.”
Too much is said about the need to raise the retirement age to 70 for major government benefits such as Medicare and Social Security. I want to know more about tax reform.
Comments are closed.