I’m going to explain why I believe that the current tax system isn’t is good, there are a lot of loopholes. I have a couple of reasons and also one counter reason.
The first reason is the carried interest. This is the most obvious loophole. The law allows that the bonusses that they make are not taxed as an income. They are taxed as capital gain, even President Trump opposed against this loophole.
The second reason are the real estate billionaires. The law allows the industry to postpone the profits continuously. So, they never have to pay taxes. This is one of the reasons why there are so many real estate billionaires.
My third reason is the Heir system. Wealthy Americans can pass their richness without paying taxes on gains. Many rich Americans borrow against their assets because they don’t want to sell them, and they most certainly don’t want to pay tax.
I also have one counter reason. The wealthy people give a lot to charity. This is something good for the charities and good for the wealthy people because it reduces their bills. But giving a lot to charity isn’t paying for education, …
These are the reason why I want the American tax system to change.
Original article (link): https://www.nytimes.com/2019/02/25/business/dealbook/taxes-wealthy.html
I wrote my opinion about this article
Stephanie Dewaegenaere 