Tax Avoidance On the Rise: It’s Twice the Amount of Social Security and Medicare

[grahamhgreen]

The wealthiest Americans save $3 trillion dollars a year through a system of subsidies and tax avoidance schemes, which totals three times more than our annual deficit. That’s enough for a full-time job for every middle-class household in America. Here are the distressing details:

1. Tax Expenditures: $1.25 trillion

2. Tax Underpayments: $450 billion

3. Tax Havens: up to $250 billion

4. Corporate Taxes: $250 billion

For over 20 years, from 1987 to 2008, corporations paid an average of 22.5 percent in federal taxes. Since the recession, this has dropped to 10 percent — even though their profits have doubled in less than ten years. The missing 12.5 percent on $2 trillion in profits amounts to $250 billion a year.

5. Financial Transaction Tax (FTT): $500 billion

6. Payroll Tax: $300 billion

This extremely regressive tax costs the richest Americans only a small fraction of what everyone else pays. If the 12.4 percent tax (half employer, half employee) were assessed on the full $3.84 trillion claimed by the richest 10 percent in 2006 (instead of on $1.43 trillion: $110,000 times 13 million payees), an additional $300 billion in revenue would have been realized.

7. Estate Tax: $100 billion

Conclusion

The total surpasses $3 trillion.

FULL POST: http://www.cagle.com/2013/01/tax-avoidance-on-the-rise-its-twice-the-amount-of-social-security-and-medicare/

Paul Buchheit is a college teacher, an active member of US Uncut Chicago, founder and developer of social justice and educational websites (UsAgainstGreed.org, PayUpNow.org, RappingHistory.org), and the editor and main author of “American Wars: Illusions and Realities” (Clarity Press). He can be reached at [e-mail].

THERE IS NO REASON TO CUT THE SOCIAL SAFETY NET OUT FROM UNDER AMERICANS WHEN THEY ARE HURTING THE MOST.

DO NOT KICK AMERICANS WHO NEED HELP WHEN THEY ARE DOWN!

[jody]

1. Don't forget Internet sales taxes, $23 billion lost.

Currently, 46 states have sales and use taxes in statute and require individuals to report and pay them on 'untaxed' online purchases at year-end. In practice, this is done 0.3 percent of the time, leaving buyers exposed to potential audit issues and states shortchanged to the tune of $23 billion annually.

http://www.usnews.com/opinion/articles/2012/12/10/with-online-sales-tax-states-can-collect-revenue-they-are-owed

[grahamhgreen]

2. You know that's the one they'll go after since it affect the middle class the most!

[jody]

3. "Only the little people pay taxes." nt

[grahamhgreen]

4. In their perfect world.

[jsr]

5. Recommended