Tuesday, December 29, 2015
How The Wealthiest 400 Americans Have Cut Their Tax Rate By Half
Libertarians adhere to a philosophy of a limited government. One limitation that they support is a limited Internal Revenue Service. The IRS established a new group to monitor the tax avoidance strategies of the the ultra wealthy. Congress came to their rescue by substantially reducing the IRS budget. Around 5,000 jobs were cut to protect the wealthiest 400 families from the IRS's effort to do its job. Over the last few decades the effective tax rate paid by the 400 wealthiest families has been cut in half. Their tax rate is about the same as a family earning $100,000. This article describes some of the tax avoidance strategies that are used by the ultra wealthy, but unavailable to most Americans. It also shows how they have used their wealth to support friendly politicians and purchase the services of lobbyists who defend the tax loopholes that they exploit. They contribute to both political parties but they favor Republicans by a wide margin. All of the current candidates for the GOP presidential nomination have proposed tax plans that would make it easier for the super rich to avoid taxes and extol the virtues of limited government.