Some years the richest people in the world in the US have not paid any federal income tax. Among the best known, examining some fiscal periods, it turned out that Elon Musk e Jeff Bezos – two characters who have vied for the title of richest man on the planet – they have not paid any income tax. Bezos also received a $ 4,000 tax credit for his children.
The examination of tax payments by the super-rich Americans was done by ProPublica, which has scrutinized the Internal Revenue Service’s data on “federal income taxes” received confidentially.
Since it is American tax matters, and in order to better understand what we are talking about, it is necessary to say that the Internal Revenue Service (IRS) is the United States government agency that collects taxes. The “federal income tax” is instead the federal income tax administered by the IRS on the annual earnings of individuals, corporations, and other corporations.
The largest source of revenue for the federal government comes from the income of its residents. In 2018, the IRS raised nearly $ 3 trillion, of which individuals, probate and trusts contributed $ 1.570 billion.
Elon Musk, zero tax dollars in 2018
ProPublica found that, for a few years, the super rich Americans (and the world) they did not contribute even a cent to the federal government’s income tax revenue.
Just for 2018, ProPublica reported that Elon Musk, CEO of Tesla and SpaceX, he paid nothing as federal income tax: zero dollars.
Yet, between 2014 and 2018 his total wealth grew by $ 13 billion, his income was $ 1.52 billion, on which, again as an average for the period, he paid $ 455 million in taxes. , equal to 3.27% of the tax rate in relation to total wealth.
Amazon CEO, Jeff Bezos “paid” zero dollars in federal income taxes in 2007 and 2011. Additionally, in 2011, a year in which his wealth was about $ 18 billion, Bezos filed a tax return reporting a loss of money. Under the tax law, this condition also allowed him to apply for and receive a $ 4,000 tax credit for his children.
For the period 2014-2018, the average tax rate applied to Bezos’ income was calculated as 0.98%, relating it to the overall wealth. In detail, in the four-year period Bezos paid 973 million in taxes on a total income of 4.22 billion dollars and a wealth of 99 billion dollars.
In contrast, ProPublica revealed that, looking at the last few years, an average American family earns about $ 70,000 a year by paying 14% federal tax. The highest income tax rate, 37%, went into effect this year for couples on earnings over $ 628,300.
The Biden administration recently proposed to raise the maximum tax rate from 37 to 39.6 percent for the next fiscal year. But in early June, US President Biden also proposed $ 3.6 trillion in tax increases for the wealthy and corporations.