Bombshell... The nonprofit publication ProPublica dropped an investigation revealing how the 25 richest people in the US pay little to no income taxes compared to their net worth. The story is causing a stir, partly since leaking tax returns is a federal crime. ProPublica says it obtained IRS data from an anonymous source. The data = tax returns of thousands of America's wealthiest, spanning 15+ years. The Treasury Department is investigating the leak. From 2014 to 2018:
Here's how... In the US, income is taxed – net worth isn't. So while Elon's wealth grew by billions as Tesla stock rose, he wasn't taxed on investments that he didn't sell (aka: unrealized gains). ProPublica calculated “true tax rate” — taxes paid as a percentage of total wealth gains.
This scandal could help fuel Biden's policy... Many Americans are shocked to see billionaires' ultra-low tax rates. President Biden is seeking tax increases on the wealthy to fund proposed spending on infrastructure and social programs, including nearly doubling the capital gains tax rate to 39.6% for Americans earning $1M per year or more.