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Corporate tax cuts may not boost growth either
https://www.sciencedirect.com/scienc...14292122000885
Corporate tax cuts may not boost growth either
https://www.sciencedirect.com/scienc...14292122000885
Pink newspaper touts land tax.
To him who has, even more will be added.
https://www.motherjones.com/politics...ss-secure-act/The Federal Reserve’s latest survey of consumer finances (SCF) shows that among the poorest 50 percent of families, less than a third participated in a tax-subsidized retirement plan in 2019, while 91 percent of families in the wealthiest 10 percent did.
The federal data (for technical reasons) excludes traditional company pensions, which have been increasingly replaced by “defined contribution” plans like 401(k)s and 403(b)s that shift the savings burden from employer to employee. And while that shift may account for some portion of the chasm in savings, the vastness of today’s retirement wealth gap is largely the result of a string of Wall Street–backed tax incentives that have been a mother lode for the rich but of little use to the poor. Based on the SCF results, Steven Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center, calculated that the average family in the bottom half of the wealth spectrum held just $6,900 in retirement savings, including individual retirement accounts (IRAs), while the wealthiest 10 percent of families averaged $861,300.
This 125-to-1 disparity is astonishing, considering the vast amount of revenue tax collectors give up in the name of helping families build their nest eggs. Retirement-#related incentives will cost a total of $1.9 trillion from 2020 to 2024, according to the congressional Joint Committee on Taxation (JCT), making them the US government’s single biggest tax-related expense—more than twice the $1.85 trillion price tag of the 10-year Build Back Better plan that Sen. Joe Manchin rejected in December, and more than the cost of federal tax breaks for dependents, charitable donations, and capital gains combined.
It isn’t too hard, on the other hand, for high-income Americans to afford the maximum retirement contributions the law allows. Some have even found creative ways to game the system. Take Silicon Valley mogul Peter Thiel, who reportedly used pre-IPO stock options valued at a fraction of a penny per share to amass more than $5 billion in a Roth IRA, a type of tax-free retirement account theoretically closed to people who make more than $144,000 a year. As the JCT discovered last year, more than 28,000 Americans had tax-#subsidized IRA balances of more than $5 million—nearly 500 of them, Thiel included, had holdings exceeding $25 million. “IRAs were designed to provide retirement security to middle-class families, not allow the superwealthy to avoid paying taxes,” lamented Oregon’s Ron Wyden, the Democratic chair of the Senate’s finance committee.
"wash sales" help rich folks stiff the taxman
Over and over, Ballmer sold and bought stocks in roughly equivalent amounts, as on that July day, when he swapped around $200 million worth. A month later, he did it again, landing at least $23 million in tax-reducing losses. Similar efforts that December brought $26 million more.
ProPublica estimates that from 2014 through 2018, Ballmer was able to generate tax losses totaling $579 million without changing his investment portfolio in a meaningful way. The tax savings from these losses amount to at least $138 million.
The scale of Goldman’s feat was remarkable, but Ballmer was just one client pursuing such a strategy. And Goldman was just part of an industry that helps the ultrawealthy report billions in losses — and save billions in potential taxes — even as their fortunes rise.
That's an IRS oversight issue and not a Ballmer issue. Anyone, regardless of wealth, can try to do this. I'm shocked that the IRS doesn't have a better method of catching this.
you're not wrong, but the thread le relates to tax policy, which includes legislation and enforcement. both favor the well off, by political choice.
redistribution to the tippy top of the income scale is at an all-time high
it's not generational Warfare
it's class Warfare
it's the wealthy class versus non wealthy class
wealthy Boomers have ed over the non-wealthy Boomers, and everybody else
Industrial scale tax avoidance
Auditing richer folks pays.
Context: wage earners in the US have been getting ed over for 50 years
When you eye ball & put a country/Russia on-the-spot like we did after II., in order to create a boogeyman & facilitate the MIC that we've accomplished then taxes are going to be a persistent, sustained problem. But, we had a choice after II., whether to kill them/Russia on-the-spot, or, create the aforementioned MIC. In the view of government, American government,,,we chose wisely.
The escalator is broken, too many people can't reach the first step. Looks like there's a big downside to real estate growing faster in price than inflation and wages.
The top decile of the top decile doesn't need more tax breaks but pols would like bigger donations and more enthusiasm from naive partisans who don't benefit whatsoever from Tax cuts.
Aside, tax cuts aren't deficit neutral, conservatives prefer to overlook that now that the trickle down theory has been exposed as vaporware. The mere existence of a trickle down theory implies bad faith and insecurity about the direction of the equities.
https://x.com/GunnelsWarren/status/1...554670875?s=20
it didn't trickle down, it was never designed to
https://newrepublic.com/article/1798...g-corporationsWhile the five years that the IPS put under the microscope may feature some of the most flamboyant examples of this wretched excess, it’s important to remember that none of this happened in a vacuum—this widening gyre of inequality is decades in the making. As the IPS study notes, “When corporate taxes made up 21.8 percent of all federal revenue in 1965, the average CEO-to-median worker pay ratio was 21 to 1. By 2022, corporate tax receipts had fallen to just 8.7 percent of federal revenue and the average pay ratio had risen to 344 to 1.”
Let us proceed...
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