How Rich People Avoid Paying Taxes

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We need to end these "pass-through businesses".

It would be one small step towards seizing the means of production.

Yep....they certainly are "smart" that way.....

Then they talk about how "oppressive" their taxes are!

"I just spent billions of dollars lobbying for a war that my sons will never fight in ... and now the proles want me to pay more taxes? Oh bother! It's time for me to put on my redneck disguise and make propaganda again!"

A Rich Person Who Just Learned That He Has to Pay More Taxes
VVV

All this talk about tax avoidance vs tax evasion, where one is illegal and one is not. Aren't they the same thing?

If we give higher taxes to the rich, they move their companies and outsource good paying jobs. If we lower their taxes, they take the money and offshore it and beg for more while investing literally nothing back into the country.

So I suppose all you poor people are supporting the government, and covering all those welfare entitlement programs for the poor? I mean, come on, if the wealthy aren't paying anything - or at least not "their fair share," then SOMEBODY'S gotta be taking up the slack. The Middle Class is shrinking every year, so if the rich aren't footing the bill, then it MUST be you poor indigent saps forking over your Ramen Noodle money to keep the wealthiest nation on the planet afloat, right?

NO? WTF? Then WHO??? Is there a Tax Fairy out there somewhere, that just takes care of it for us? Or are you just falling for that old Leftist BS, that says the wealthy don't have a right to take tax breaks when they find a legal loophole that allows for it? Of course, YOU would never do that, right? No doubt all us average schmoes, we pay every penny we possibly can to help out our fellow citizens, right? You'd never accept a tax return check, just because you found a legal deduction, wouldja? 'Cause that would be immoral, right? God forbid you should be a practical businessman, and save a penny wherever you could, so you didn't have to lay off employees during the slow season and stuff.

That's just Leftist greed, trying to convince you that having a single thin dime more than the guy next to you, makes you evil, because everyone deserves to share in the same level of poverty. To the Leftist's mind you're a stingy hog if you can afford something your neighbor can't, even if your neighbor only has a job because YOU gave him one. It's Marxism 101: CAPITALISM IS BAD. Only that's a lie. The wealthiest, most comfortable nations on the planet all depend on Capitalism for their success. Even countries who tried to survive on pure Socialism, like China, finally had to incorporate Capitalism into their economies, or fail - and nobody is under any illusion that the average Chinese citizen is well off, even if their "fair" Marxist government and it's cushy bureaucrats are doing fine.

The truth is, according to the Congressional Budget Office, the rich pay virtually ALL the taxes that fund our government already, so asking them for more is just being a sucking vampire.

Yes, they're rich, so what? They invested while you spent; they worked long hours while you went to concerts, got drunk and vacationed - somewhere along the way, they did some "get rich" things right where you did not - it can't be pure luck, that's just not mathematically possible. In fact, statistics prove that people who get rich by chance, like lottery winners, never hold onto it and are usually poor again with a few years. Bottom line, for most of us, if we had the knack for getting rich, knew how to get rich and had the drive, we'd be rich. Knack and Drive being the operative words. And once you get rich, you can't stay that way if you give everything away to poor people with their hands out. Which is exactly what eventually happens to every Socialist government - sooner or later, they kill the Golden Goose and run out of other people's money. You'd think any moron could see something so simple, but apparently greed takes no IQ tests.

So no matter how the Lefties try to spin it to you, the notion that the wealthy are cheating the rest of us by taking tax breaks is largely bullsnot. Yes, they ARE taking tax breaks, probably every one they legally can, but that's OKAY. Those tax breaks have been PROVEN time and again, to fuel economic growth and JOB development (if you lived through the Reagan years as a working adult, you can probably remember reaping the benefits of economic growth stimulated by business tax cuts and deregulation). The USA is still the wealthiest nation on Earth, our poor people are still better off than any other "poor people" on Earth, and you know why? Because our government, and all it's outrageous expenditures and boondoggles are being paid for, not by the nickles and dimes of the poor, and only partially by the tax dollars of the Middle Class - but largely, and MOSTLY, due to the taxes of the fabulously wealthy.

Let's not forget the Clinton Foundation which was a money-maker for the Clinton family personally. Haiti still despises the foundation for its, umm, lack of interest according to Politico.com ( http://www.politico.com/magazine/story/ ... ail-213110 ). The resulting Clinton Foundation–State Department controversy ( https://en.wikipedia.org/wiki/Clinton_F ... ontroversy ) didn't help assuage the ruffled feathers.

Now, that's some tax avoidance writ large.

This is true. That's why most leftists are internationalists. People from all over the world must work together or else this won't work.

I can't see the video. However, as I understand it, this "pass through" term refers to assets from an LLC, S Corportion, or some such thing that is passed through to the beneficiary and reported on personal income taxes.

Most of this income comes from investments It's taxed at a lower rate than earned income for two reasons.

In example form:

Suppose Jim and Bob both have $500 of earned income, after paying taxes and their rent and bill and personal living expenses. Jim decides to use that money to buy a TV. Jim exchanges the $500 for a TV. He gives his $500 and gets a TV in return. That $500 is distributed to the employees of the company he bought the TV from. Most of them use it like Jim.

Bob decides to invest his $500 by starting a company that he structures as an S Corporation. Unlike buying a TV, this is a risk. Bob could lose all of the money he invested, and get nothing in return (unlike Jim, who got a TV). But if Bob's investment works out, and his S Corporation turns a profit, that corporation pays taxes, and the people that corporation hires pays taxes.

The government would rather people invest their money like Bob, than spend it on a one time business transaction like Jim, because when these investments prove profitable, they increase the overall tax revenue for the government. So to make the prospect of investing more appealing, the government taxes income on these investments at a lower rate, and allows write off for losses.

I don't think this should be changed. But I do think very affluent people can and should contribute more than they often do. A big concern that many people have about paying taxes is that the money will be squandered or mis-spent, or spent on things they do not support. Rather than paying into the general tax fund, I think people should have some say in to how a portion of their tax money is spent. For example, perhaps someone who earned $25,000,000 in one year would rather give $1,000,000 to a food bank or $1,000,000 to medicaid than $1,000,000 to the Treasury. For less affluent, middle class individuals, rather than taxing them so much, they should be given the option of community service.