Comment on Here are the massive tax increases coming your way in a second Biden term
wintermute_oregon@lemm.ee 8 months agoLet’s focus on one as that’s easier.
Elon Musk, one of the world’s richest men, paid a “true tax rate” of about 3 percent between 2014 and 2018. Aber Christine, a flour vendor in Uganda, makes $80 a month and pays a tax rate of 40 percent.”
This is false. It’s easy to prove it false. It’s well documented.
Between 2014 and 2018, Musk paid $455 million in taxes on $1.52 billion of income,
cnbc.com/…/elon-musk-says-he-will-pay-over-11-bil…
So how did they come up with 3?
Technically most of that wasn’t “income”. It’s capital gains. His salary is normally a dollar.
GrymEdm@lemmy.world 8 months ago
Here’s another story about the 11-billion tax claim. What you story leaves out is: “The emphasis on Musk’s income comes amid speculation of his past tax filings. In June, a ProPublica investigation found that while Musk’s wealth had grown by nearly $14 billion from 2014 to 2018, he paid $68,000 in federal income tax in 2015, $65,000 in 2017 and none in 2018. Between 2014 and 2018, the investigation found, he had a true tax rate of 3.27%.”
Here’s the ProPublica investigation based on IRS documents. “We compared how much in taxes the 25 richest Americans paid each year to how much Forbes estimated their wealth grew in that same time period…According to Forbes, those 25 people saw their worth rise a collective $401 billion from 2014 to 2018. They paid a total of $13.6 billion in federal income taxes in those five years, the IRS data shows. That’s a staggering sum, but it amounts to a true tax rate of only 3.4%.”
wintermute_oregon@lemm.ee 8 months ago
Ignore the 11 billion part. That’s for a different time period. Your quote was from 2014-2018.
You don’t pay taxes on wealth. So your citation doesn’t understand tax law. Wealth can’t be taxed by the federal government because it’s unconstitutional. Basically they are idiots.
We pay taxes on income and the rate changes on the type of income. Wealth isn’t income.
GrymEdm@lemmy.world 8 months ago
You linked the 11-billion story though?
The attitude of hiding behind loopholes and technicalities is how the US has ended up with in the state shown by this chart and tables - with 2/3rds of wealth owned by the top 10%, and only 3% of wealth held by the bottom 50%. I’ll continue to listen to your arguments, but as fair warning you are unlikely to convince me that the bottom 170 million US citizens should hold only 3% of the wealth (2023 data btw).
wintermute_oregon@lemm.ee 8 months ago
As it had the 2014-2018 numbers.
It’s neither. It’s how our tax code is written. Most of their wealth I would assume is stock. It isn’t cash.
Almost all of elons wealth is stock.
I’d be fine saying stock sales are ordinary income including SS and Medicare. That would end some of this.
I’d be fine counting personal loans as income and rebate if needed when paid off.
Since capital gains are taxed lower. Many people have converted their pay to stock.