The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax
The Secret IRS Files: Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax
ProPublica has obtained a vast cache of IRS information showing how billionaires like Jeff Bezos, Elon Musk and Warren Buffett pay little in income tax compared to their massive wealth — sometimes, even nothing.
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... By not having an income?
pay income taxes that are only a tiny fraction of the hundreds of millions, if not billions, their fortunes grow each year.
What is this garbage? If I own a house/gold/collectable/toilet paper during covid/... and the value goes up, am I supposed to pay taxes? Do I get money back if the value goes down again? That is no income. It really is that simple. Yes, we still need to find a way do deal with this.
Corporations with marketable securities or hedges have to adjust their value every quarter, known as marking to market, and declare the change as income. Price goes up, they pay tax; price goes down, they get credit. It's a huge pain, and it would be tough for us mere mortals to do, every quarter or every year, on $1000 of TSLA, but it seems pretty reasonable to apply to individuals with 8-figure portfolios.
Yes, no question.
What is this garbage? If I own a house/gold/collectable/toilet paper during covid/... and the value goes up, am I supposed to pay taxes?
Yes, you are supposed to pay taxes on that (or on the house specifically). It's called property taxes.
If the value goes up, you pay more taxes the next year, if the value goes down you pay less.
Take any of the other examples, it is obviously not what I meant. Instead, it is just a tax that exists for a different purpose (not income) that happens to change with value.
You really didnt read the article right?! Because they explained exactly that: one way they avoid taxes is buy borrowing money giving the stocks as collateral... the interest they pay is way lower than the taxes they would have paid...
If my house goes up in value, then my property tax goes up as well. So yes.