The Daily Why Billionaires Pay So Little Tax
Jun 15, 2021
Jonathan Weisman, a Congressional correspondent for The New York Times, dives into the shocking tax practices of billionaires like Jeff Bezos and Elon Musk, who often pay little to no taxes. He highlights the legal loopholes that allow the ultra-wealthy to minimize their tax burdens, contrasting their situation with that of average earners. Weisman also examines the historical context of wealth and taxation in the U.S., discussing how past tax policies have influenced today's landscape and the implications of potential wealth taxes to address income inequality.
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Bezos's Salary
- Jeff Bezos's salary at Amazon is surprisingly modest, totaling $81,840 annually.
- This intentional low salary impacts how his overall income is taxed.
Bezos's Wealth and Taxes
- Bezos's wealth primarily comes from assets, mainly stocks, which accumulate value untaxed until sold.
- Unlike ordinary wealthy individuals, he avoids capital gains taxes by borrowing against his assets instead of selling them.
Bezos's Borrowing Strategy
- To fund purchases, Bezos takes out loans backed by his assets, avoiding stock sales and capital gains taxes.
- Banks readily provide these loans due to his substantial collateral.