pknopp
Diamond Member
- Jul 22, 2019
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Every rich business owner has to pay property taxes on the property they own, whether the property is an actual business or their own home.
Well, no. Businesses are often times given breaks on those taxes to move into an area. Locally we had a business do that and when the breaks expired they moved again.
There is no escaping it. Property taxes pay for schools, fire departments, police departments and local government programs that benefit the public. There's also employment taxes and excise taxes, as well as advanced investment strategies.
The rich have loopholes that can be used such as business expenses and thus deducted from the income tax. If one or more of their businesses are in the red, that can be deducted.
So, they can "legally" get away with significantly "reducing" the amount of taxes they pay but not eliminate paying taxes entirely.
The blame isn't on the rich person, but congress "never" willing to make changes to the tax code.
An excellent example of why they don't want to change the tax code, aside from their own pockets, is for example, the Scandinavian nations. The most heavily taxed citizens in those countries aren't the rich, but the middle class. It is felt that if you heavily tax the rich, you risk stifling innovation and they are correct.
For decades Communist nations "stole" our innovation and adapted it to their needs. They stole the innovation from Capitalist nations because there was no incentive for people in Communist nations to be innovative. To be really innovative, you need an incentive, generally that's a financial innovation.
Top earners in Sweden pay over 50%.
The rise of Sweden's super rich
Why the Nordic nation, despite its reputation for social equality, has so many billionaires.