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Jeff Bezos, Buffett, Musk paid only miniscule amount in income tax from 2014-2018: Report

The findings reveal the stark inequity in the US tax system

bezos-musk Jeff Bezos and Elon Musk| File

A recent report has revealed that the world's richest, including the likes of Jeff Bezos, Warren Buffett and Elon Musk, have paid little to no income tax between 2014 and 2018 in the US. The findings reveal the stark inequity in the US tax system as the super rich benefit from a complex web of loopholes in the tax code and the fact that the United States puts its emphasis on taxing labor income versus wealth.

The report said that in 2007, Amazon CEO Bezos paid nothing in federal income taxes even as his company’s stock price doubled. Four years later, as his wealth swelled to $18 billion, Bezos reported losses and received a tax credit of $4,000 for his children, according to ProPublica.

The analysis showed that the nation’s richest executives paid just a fraction of their wealth in taxes — $13.6 billion in federal income taxes on $401 billion of their wealth.

The report comes amid efforts by newly elected President Joe Biden to overhaul the tax code to raise taxes on corporations and the rich. Biden has proposed raising the top income tax rate to 39.6 per cent from 37 per cent.

At the same time, the report calls for a fresh look into America's system of taxing the rich, reports NYT. A recent proposal was to apply a 2 per cent tax to an individual’s net worth—including the value of stocks, houses, boats and anything else a person owns, after subtracting any debts—above $50 million, rather than a blanket rate on total income. However, Biden and his advisers have deemed the idea unworkable.

While ProPublica did not reveal how it obtained the information, the publication said the documents were provided to the outlet “in raw form, with no conditions or conclusions” and that it had run the information past every executive whose information was included in the article.

The report also highlighted the techniques that the wealthy often use to reduce their tax bills, including taking advantage of a complex web of loopholes and deductions that are perfectly legal and can significantly reduce—or erase—tax liability. That includes borrowing huge sums of money backed by enormous stock holdings. Those loans are not taxed and the interest that the executives pay on the money can often be deducted from their tax bills.



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