Opinion: America's tax system is rigged to protect the rich and powerful
June 10, 2021 at 21:54
(CNN) The US tax system is rigged, and it is breaking the country in more ways than one.
Meanwhile, public opinion -- strongly supporting higher taxes on wealthy Americans and corporations -- counts for little because the rich have undue influence over the political class.
Not only is our tax system not collecting taxes from America's richest individuals -- it's designed not to do so.
He won't owe or pay a penny of income tax.
At a conceptual level, Bezos' income in this example is $20 billion, measured by the change of wealth.
But why should he sell them when he can pay for his $500 million superyacht and other toys by borrowing -- and thereby escape income taxes altogether?
There are actually four interconnected ways that the tax code is designed by and for the rich.
Notably, these tiny places have a 0% corporate tax rate.
In short, the international profits are magically assigned for tax purposes to a place with 0% corporate taxes.
The third problem is outright unaffordable tax cuts, such as the 2017 Trump-led tax law that cut the statutory corporate income tax rate from 35% to 21%.
The International Revenue Service budget to audit companies and wealthy Americans was slashed over the past decade, further enabling this bad behavior.
Join us on Twitter and FacebookIn addition, Biden and Yellen want to raise the statutory corporate tax rate back to 28%, halfway to the pre-2017 rate, though they don't propose to tax unrealized capital gains.Source