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I keep hearing people say "tax the rich" but how do the rich not pay taxes? (sorry for the dumb question, I don't know much about this)

but yeah,

I'm really uneducated with this type of stuff, but am trying to learn 馃憖

plz b gentle
It鈥檚 really very simple. But don鈥檛 expect anyone to mutter it out loud.

Rich folk fund politicians.
Politician pass laws/policies where the rich get tax breaks.

And even if they do lay a tax on the rich, they are in position to pass off costs into their consumers..
trickle down bum railing it called.

This is EXACTLY why term limits and audits are to politicians, what sunlight and wooden stakes is to vampires.

+ they don鈥檛 really teach kids from public schools about tax havens and loopholes..
they鈥檙e more focused on what toilet to piss in and what pronoun they gunna wear today..
BlueVeins22-25
The income tax rate is what working people pay; it's the tax on our paycheck. The capital gains rate is what people pay on stocks & bonds (among other things). The rich make most of their money through stocks & bonds, and in my home country, the capital gains rate is much lower than the income tax rates are.
Elessar26-30, M
That's a question that could be answered exhaustively perhaps by a book, let alone a post. Anyway, most common routes on top of my mind:

1) hiding assets out of the govt's jurisdiction
2) moving businesses headquarters in tax havens, taking advantage of trade agreements between differently taxed jurisdictions (fiscal optimization, kind of)
3) declaring less than they actually make, or even straight out faking/omitting invoices
4) selling or transferring possessions to a trusted person, so it no longer appears as yours, while actually you still own that possession. Most trustable person would of course be a dead person
Fishy31-35, F
@Elessar

[quote]That's a question that could be answered exhaustively perhaps by a book[/quote]

You got any good book recommendations? 馃憖

I'm legit trying to get educated about this because I don't remember much from school all those years ago 馃槵
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ChipmunkErnie70-79, M
Because the people who write the tax laws -- and add in all the loopholes, rates, etc., -- were elected to office because the rich paid for their campaigns and expect to get something back for their bucks?
Fishy31-35, F
@BlueVeins I never really understood the whole living of the loan they take out or "good debt" thing that I've heard rich people talk about

I mean, how is that different from the not-rich being in debt?
And how can debt ever be good? debt sucks 馃槚
BlueVeins22-25
@Fishy Rich people pay much less for their debt for completely legitimate reasons, believe it or not. A rich fuck like Bezos is very unlikely to default on their debt because their money is managed carefully, they have more diverse streams of income, they have a ton of resources at their disposal, and they have that collateral if all else fails. For someone like you and me, we might default on our debt if we lose our jobs or get hit by a car.

Thus, it's a lot harder to persuade people to lend to us than to Elon Musk, and we accomplish this by offering said lender more money -- AKA interest.
Fishy31-35, F
@BlueVeins yeah, I guess that makes a [i]little[/i] more sense...

Still got a lot of learning to do in this area tho

I'm total noob lol 馃槀
This is simple enough to answer... Let's say that you are poor and work as a cleaner in a hotel. When you get paid your wages, you see that the government has taken 40% of your income for taxes.

Now, let's say that you meet me and I am a multimillionaire. I have paid 20% of my income on taxes and funnelled another 10% into my off shore bank account for a rainy day.

Who do you think got cheated out of their money here???
Fishy31-35, F
[quote]taxes and funnelled another 10% into my off shore bank account for a rainy day.[/quote]


Yeah, it seems unfair,

But I'm trying to figure out how they actually do that

Before now, I've never even heard the term funnelled and offshore bank account 馃槄
NerdyPotatoM
Most of them do pay taxes, just not as much as poor people relative to their income.
Fishy31-35, F
@NerdyPotato

isnt that an investment thing tho?
Not necessarily a rich thing?


I mean like, if that's the case, wouldn't it make more sense to say "there should be higher investment taxes"

Instead of "tax the rich"?
NerdyPotatoM
@Fishy only the rich can afford to invest and what else are you going to do with more money than you can spend on things you use? The two are pretty much synonymous.
Fishy31-35, F
@NerdyPotato yeah I'm still a noob, ngl

I've never invested in anything big or small,

So I don't know how much it takes to invest in things 馃槄

I'm just learning n stuff
Sepia36-40, F
They pay for loopholes.
Fishy31-35, F
@Sepia But what are the loopholes?
Sepia36-40, F
@Fishy for people who does it for them to lessen the taxes鈥 they pay the OIC-Officer in charge for personal Service (under the table) trans. They get cleared easily.
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empanadas31-35, M
There are tax breaks and loopholes but at least in the USA, there's a tax for basically everything here. It's hard to run away from taxes nowdays. Unless, you give up your citizenship from the legacy countries and invest in a country to get citizenship then move to dubai
Elessar26-30, M
@Fishy Just Google, you'll find plentiful of information

https://www.propublica.org/series/the-secret-irs-files

https://www.forbes.com/sites/tommybeer/2021/04/02/more-than-50-major-us-corporations-including-nike-and-fedex-paid-no-federal-taxes-last-year/

https://www.businessinsider.com/american-billionaires-tax-avoidance-income-wealth-borrow-money-propublica-2021-6?r=US&IR=T
empanadas31-35, M
@Elessar don't assume things, 馃し馃徑鈥嶁檪锔 you aren't even from here. One, you have no idea how much I own or If I'm rich. Two, you just European who thinks they know everything about the USA from bias articles. Most of those billionaires you see are paying the minimum 33 percent of taxes. There's a reason why alot of wealthy people are leaving the USA and are moving to Asia.
Elessar26-30, M
@empanadas Lol, tax rates are numbers, specifically numbers that are publicly available, there's no need for assumptions, for articles that may be biased or not, and last but not least my geographical collocation is absolutely irrelevant when it comes to comparing percentages. The "you don't live here therefore you can't point out our system's fallacies" argument is purely deflective, as math isn't an opinion and doesn't recognize national borders. Besides, I could similarly say you're making assumptions too, for instance you couldn't exclude I may have experience running a business (and, by extension, filling tax returns) in both continents.

Also, ultra-wealthy individuals and corporations reliance on tax havens, just as you pointed out yourself by mentioning escapades to Asia, just like the so called "fiscal optimization", happens in virtually every country they operate in, even if the geographical gatekeeping was valid I'd be just as entitled at pointing it out as virtually anyone else living and paying (percentually higher) taxes in any of such countries.

 
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