If you’re wondering how the ultra-rich avoid paying taxes, here’s a handy infographic that explains it:
Source: TopAccountingDegrees.org
Recent reports that Google Avoided $2 Billion in Taxes by Stashing Money in Bermuda have caused many people to question our government’s willingness to turn a blind eye to the bad behavior of big corporations while the rest of us, working harder and longer than ever, are struggling to get by. Krugman even recently brought up the idea in a recent NY Times piece that we are effectively back to living in times of Robber Baron monopoly power.
The truth is, the current tax system is structured to reward those who have the resources to hire lawyers to find holes in the tax code. It is unabashedly pro-rich. While the middle class struggle to figure out TurboTax or H&R Block software with their one-size fits all systems, the ultra-rich have real people who are looking for every way to keep money out of the governments hands. And that’s fine to a point. We want to reward capitalism. I put the blame on the government for creating the loopholes in the first place.
