The rich get even richer and don’t always pay their fair share to the public fund such is U.S. tax law. Thanks to a sensational report by ProPublica, a nonprofit investigative journalism organization, it has come to light that the rich e in certain years claim losses that negate the need to pay income taxes. This should sound familiar; former President Donald Trump did the same thing.
In particular, Bezos, the richest man on Earth, who used his vast fortune to start a space company, has repeatedly told the federal government in recent years that he has no income taxes.
Musk, whose fortune has grown by many billions in recent years and who also has a space company, was also not subject to income tax. Bloomberg and Buffett, who both supported raising tax rates for the wealthy, have income tax bills of $0.
How is this possible? First, U.S. tax law is focused on income, and much of the super-wealth is tied to stocks in companies or other investments that have real value but are not taxable year after year. In fact, they pay taxes through their companies; however, the 21% corporate tax rate is far below the maximum rate of 37% for income over $523,000 for individuals.