Where Did Biden Get This Claim? Billionaires Pay an Average Federal Tax Rate of Only 8.2%?

[Toddsterpatriot]

Nope, that won't work. In nearly all cases, carried interest is taxed as capital gains income, which, in the case of the rich, is far more than 8.2%. See my OP for the tax rates on capital gains income.

Having read many bogus, pseudo-scholarly liberal economic "analyses," I suspect this 8.2% figure is based on a large pile of distortion and omission.


Really? And how often, if ever, do you really think that happens? Claiming a huge business-expense deduction for a vehicle is a good way to ensure you get audited by the IRS.

I should mention that the Trump tax cuts capped the tax deduction for state and local property taxes at $10K. This provision has hit the rich the hardest, since they pay far, far more in property taxes than average American workers do.


You must be kidding. Is this the kind of delusion that drives the liberal hatred of wealth and success? You think claiming an occasional high-end vacation as a business expense, even assuming a billionaire would take such a risk of prosecution for tax fraud, is going to bring down a billionaire's average tax rate to 8.2%? Really?

Again, large business-expense deductions are a common tripwire for an IRS audit. You can go to jail and/or pay a stiff fine for that kind of tax fraud.


You haven't established that billionaires pay an average federal tax rate of only 8.2%.

There is nothing on the White House website that documents the claim that the uber-rich pay an average federal tax rate of only 8.2%. Any White House OMB/CEA "analysis" that says they do should be available for scrutiny. Given the known tax rates on interest from savings accounts and CDs and from capital gains income, I'd like to know how billionaires could pay an average tax rate of only 8.2%.


Uh, so you think the Republicans have been ones who have blocked attempts to simplify the tax code?! Really?!

Stop making sense, leftists really hate that. They're allergic to sense.

 

[Toddsterpatriot]

I'll stay with you don't have the foggiest clue.

Private Planes and Luxury Yachts Aren’t Just Toys for the Ultrawealthy. They’re Also Huge Tax Breaks.

What’s the only thing better than having your own Gulfstream jet? Why, getting to claim millions in tax deductions for it. All you have to do is make a case you’re using it for business, which turns out to be surprisingly easy.

www.propublica.org

Private Jet Costs, Sketchy Deductions Among Red Flags in Trump Taxes

Dozens of audit triggers litter Donald Trump’s tax returns, according to Congress’s top non-partisan tax lawyers: questionable private jet expenses, large unsubstantiated charitable deductions and dubious payments to the former president’s children, among others.

www.bloomberg.com

Private jet buyers got a big bonus from Trump's new tax law

Through bonus depreciation, private jet buyers will not be able to deduct 100% of its cost immediately.

www.businessinsider.com

Opinion| Stephen Prince: I own a private plane — I don't need a tax break to fly one.

The wealthiest Americans have an obligation to speak up when the system is unfairly rigged in our favor.

www.nbcnews.com

Leased cars

The tax benefits of leasing vs. buying a car for your business

Is it better to lease or purchase a business vehicle? That depends on vehicle use.

finance.yahoo.com

Using Section 179 to Write Off Luxury Vehicles

There may be tax benefits to leasing or buying a car for business. If your business purchases or leases heavy luxury vehicles, you may be able to write off a good portion of their cost using Section 179.

corvee.com

Ten Ways Billionaires Avoid Taxes on an Epic Scale

After a year of reporting on the tax machinations of the ultrawealthy, ProPublica spotlights the top tax-avoidance techniques that provide massive benefits to billionaires.

www.propublica.org

McCaffery Breaks Down How The Rich Avoid Taxes

Investing money can help you build wealth, but taxes can take a big bite out of your earnings. Following a buy, borrow, die strategy is one way to minimize your tax liability and preserve more of your wealth. The concept … Continue reading → The post Buy, Borrow, Die: How the Rich Avoid Taxes...

finance.yahoo.com

Like I said...MAGAT Talking points.

Thanks for the whiny links.

As a result, when Alvarez and Marsal sprang for their second plane in 2018, this one a Gulfstream V, the entire cost was deductible. That year, the pair’s two planes netted them a tax deduction of $14 million.

OMG! Did that drop his income tax rate to 8.2%?

 

[Crepitus]

Well, gee, that sure clears up your understanding on the topic...dumbass.

My understanding of the topic is far in advance of any silly little tRumpling's.

 

[Thinker101]

My understanding of the topic is far in advance of any silly little tRumpling's.

Yep, your posts disagree.

 

[mikegriffith1]

Stop making sense, leftists really hate that. They're allergic to sense.

Yes, and let it be noted that no one has provided a single link to document the White House claim that billionaires pay an average federal tax rate of only 8.2%.

Even if billionaires get all their income from capital gains income, the tax rate on that amount of capital gains income is 20%, as anyone can verify by checking the federal tax rates on capital gains.

 

[Polishprince]

Yes, and let it be noted that no one has provided a single link to document the White House claim that billionaires pay an average federal tax rate of only 8.2%.

Even if billionaires get all their income from capital gains income, the tax rate on that amount of capital gains income is 20%, as anyone can verify by checking the federal tax rates on capital gains.

Libs want to count unrealized capital gains as income. Not just those which are currently taxable

 

[Toddsterpatriot]

Yes, and let it be noted that no one has provided a single link to document the White House claim that billionaires pay an average federal tax rate of only 8.2%.

Even if billionaires get all their income from capital gains income, the tax rate on that amount of capital gains income is 20%, as anyone can verify by checking the federal tax rates on capital gains.

They do the same fake math when they claim huge profitable corporations
pay 2% on billions in earnings. It's always based on fake income numbers.

 

[JohnDB]

During his State of the Union speech, President Biden said that American billionaires pay an average federal tax rate of only 8.2%. I quote:

There are 1,000 billionaires in America. You know what the average federal tax rate for these billionaires is? 8.2 percent! That’s far less than the vast majority of Americans pay. No billionaire should pay a lower tax rate than a teacher, a sanitation worker, a nurse!

How can this be? Even if those billionaires earn no money from capital gains and just live off the interest on their money, either from regular savings accounts or from the various types of CDs, those earnings are taxed at the same rate as salaried income.

Any income earned from capital gains that exceeds $41K for individuals and $95K for households is taxed at a rate of 15%. If it exceeds $519K for individuals and $584K for households, it is taxed at a rate of 20%.

The majority of working Americans pay a federal income tax rate of no more than 12%, since they fall into the first and second tax brackets. Approximately 60 million Americans pay an average tax rate of only 1.5%, even before tax credits are applied (LINK).

Anyone have any idea where Biden got this claim that the average federal tax rate for billionaires is only 8.2%?

Out of thin air....

Most billionaires don't have salaries...they have investments that they borrow against for for cash. So billionaires have lines of credit that they use for expenditures like homes and yachts and fancy cars. What little salaries they get are used to service the interest payments on these loans. That's what they are paying taxes on.