Search Engine Why is it so hard to tax billionaires? (Part 2)
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Oct 18, 2024 Jesse Eisinger, a renowned investigative journalist at ProPublica, and Alison Schrager, a senior fellow at the Manhattan Institute, delve into the world of billionaire taxation. They reveal surprising strategies like 'buy, borrow, die' that let billionaires like Jeff Bezos pay less tax than average Americans. The conversation explores the ethical dilemmas faced by whistleblowers who expose such discrepancies and the ongoing debate over tax equity. Expect insights into proposed reforms and the challenging balance between wealth and responsibility in today's economy.
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Leaked Tax Documents Reveal Billionaires Paying No Income Tax
- ProPublica’s Jesse Eisinger received leaked tax documents, revealing tax avoidance by billionaires.
- This included people like Jeff Bezos, Elon Musk, and Michael Bloomberg paying zero income tax.
Low Salaries and Asset Appreciation
- Billionaires often receive low salaries, sometimes just $1, to minimize income tax.
- Instead, their wealth grows through asset appreciation, like stock gains, which are taxed differently.
Borrowing Against Assets
- Billionaires borrow against their assets (like stock) at low interest rates instead of selling them.
- This allows them to access funds without triggering capital gains taxes, as loans aren't taxed.