Saturday, July 17, 2021

Vox explains 'How the rich avoid paying taxes'

Last month, CNN, NBC News, and CNBC reacted to ProPublica's report about the ultra-rich avoiding taxes. Last week, Vox joined in by explaining How the rich avoid paying taxes.

Capital gains taxes, explained.
The richest in America don't make money like most Americans. Most people pay income taxes from a regular job. But many in the top 1% make money off their investments, like stocks, and pay capital gains taxes. While normal income has a maximum tax rate of 37%, long-term capital gains tops out at just 20%. Changing that rate, and some loopholes that benefit the wealthiest, is seen as one way to tax the rich.
So far, Vox has concentrated on income taxes, which I've documented in Alexandria Ocasio-Cortez and Vox explain how tax brackets work, Vox explains tax reform for Tax Day plus taxes and economics for the eighth year of Crazy Eddie's Motie News, and Vox explains who really pays the lowest tax rates for a postponed Tax Day plus Supreme Court rules on Trump's tax returns. A large reason for the richest Americans paying a lower effective tax rate is not income tax, but capital gains tax. It's about time Vox examined that in more detail. I hope Congress and the Biden Administration do, too.

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