Why do many ultra-wealthy Americans and many of the most profitable corporations in the country pay very few or no taxes at all? In America now, the wealthiest one percent of all Americans hold a greater net worth than the bottom ninety percent combined. Our legislators are constantly establishing different ways to take money away from everyone every single tax period.
Quite a few wealthy Americans frame their net income in such a way that it comes from long-term capital gains so that they can lower their income tax. Capital gains and investment income are taxed at a lower rate than earned income. As Warren Buffett likes to mention, seeing that most of his income is from dividends, his income tax rate is less than the employees that clean his office.
Investment earnings are not subject to FICA taxes. As of 2013, Social Security taxes are only taken out of the first $113,700 of income. For the four hundred U.S. taxpayers with the greatest adjusted gross income, the effective federal income tax rate was decreased from nearly thirty percent in 1995 to slightly below seventeen percent now. They also know, and can afford to use, some particularly intricate tax shelters.
Corporate Tax Abuses
In 1950, corporate taxes accounted for about 30 percent of all federal tax returns. In 2012, corporate taxes accounted for not even 7 percent of it all. Just what has changed that has allowed this to occur?
Companies expend more on lobbying than what they do on taxes. America’s Top Ten companies paid back an average tax rate of barely 9% in 2011. They use shell organizations, offshore tax havens and many other loopholes in our tax code to minimize their income tax burdens.
Thirty corporations had collective gains of more than 163 billion dollars in the three years from 2008-2010. Yet, the combined net tax liability of those companies was a negative 10.6 billion dollars. That’s right, I said negative. They were basically paid-off to steal from taxpayers. The United States is one of the greatest offenders worldwide when it comes to corporate secrecy.
The large Wall Street banks such as Goldman Sachs, JP Morgan Chase and Bank of America, are amongst the most unscrupulous companies. Among the top 10 businesses who eluded any serious taxation were Apple, Exxon Mobile, Chevron and IBM. Facebook made at least a billion dollars in 2012 and yet did not pay anything in federal or state income taxes.
Income Tax System Abuses
We should get rid of the income tax. Hard working middle class people and small businesses all over America are financially raped with this insidious system. Congress has had a long time to fix it, and yet the abuses simply keep escalating. U.S. taxpayers waste more than 7.6 billion hours complying with federal tax expectations. If time is indeed money, then we are wasting plenty of money in just complying with our present tax laws.
The United States has the highest corporate tax rate worldwide at 35 percent. In Ireland, the corporate tax rate is 12.5 percent. Corporatism, instead of Capitalism, generates a few winners and a lot of losers. Only those corporate giants that cheat the system can thrive now within this country. This is compelling a large number of smaller companies to move operations outside of the United States into other nations.
The global elite hold around 32 TRILLION dollars kept in offshore banks all over the world. The offshore environment can make it difficult for prosecutors chasing intricate financial crimes to track the wealth. Wealthy groups of accountants, middlemen and other operatives help offshore clients shroud their identities and business interests.
These groups offer shelters frequently to money laundering or other deceitful practices. The mega-rich work with elaborate offshore structures to possess mansions, yachts, art masterpieces and other property. These global elite receive tax advantages and anonymity unavailable to average people.
Nearly one third of all the wealth on earth is held in “offshore” tax havens. This wealth ends up becoming deferred taxes that should at some point be paid back. A policy even leading Republicans are deliberating on, however, would allow companies to repatriate overseas profits back to the United States practically free from taxation. This would end up costing the country billions of dollars and numerous jobs. This would really just turn into a form of legalized money laundering!
U.S. citizens are permitted to move their wealth to offshore banking institutions as long as they report their account details to the Internal Revenue Service. However, there have already been concerns that much of the money is not declared and bleeds tax revenue from governments worldwide. Today, there are between 50 to 60 offshore financial centers internationally storing many billions of dollars at a time.
The British Virgin Islands is the world’s foremost offshore haven that is used by a number of government officials and wealthy families around the world to hide their wealth. Recently, millions of internal documents have been leaked from Britain’s offshore financial industry. Investigators are uncovering, for the first time ever, the identities of numerous holders of anonymous riches from around the world.
The Truth Leaks Out
Hidden data files acquired by the International Consortium of Investigative Journalists recently revealed that thousands of people in over 170 countries and territories were connected to offshore organizations and trusts. Their investigation began after a computer hard drive loaded with corporate information and personal information and emails happened to arrive in the mail one day. It contained nearly 2.5 million files, containing at least two million emails which are helping to chart the offshore industry over a long period of intensive build up.
It is perhaps the most significant collection of leaked records ever gathered and examined by a group of investigative journalists. It contains about 130,000 documents on the people and agents who operate, own, profit from or lurk behind offshore companies. French president, François Hollande, is currently mired in a financial scandal because his previous budget minister concealed a Swiss bank account for twenty years and repeatedly denied that it even existed.
Many ultra-wealthy escape artists from a lot of nations have already been identified and there will be more to come as a result of this one investigation. Watch the video below for more information being broadcasted on major news stations across the world about this.
Those who have such unscrupulous morals and ethics should all be investigated and thrown in jail for many years to come. These unprincipled people have no conscience regarding the crimes that they are conducting that hurt multitudes of less fortunate people.
Hard working American families are being absolutely crushed by oppressive levels of taxation. Our tax code is nearly 4 million words long. The federal income tax system is irreversibly broken and needs to be done away with.
If God were to even allow a tax by a nation upon its people, it would be equitable. What if everyone were to pay the same percentage of their income to the government? This is definitely not even close to what is going on in our nation right now. This one change alone could pull our country out of the economic distress it is now suffering.
UPDATE: (5/16/2013) As of March 2013 Apple reported having a total of $145 billion cash on hand, but $102 billion was stashed in offshore funds.
I wish you the best of “believing” in all of your future endeavors,
ROB – (admin)
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