STOCK MARKET WATCH -- Wednesday, 9 January 2013

[Demeter]

10. Tax Avoidance On the Rise: It's Twice the Amount of Social Security and Medicare

http://truth-out.org/buzzflash/commentary/item/17733-tax-avoidance-on-the-rise-it-s-twice-the-amount-of-social-security-and-medicare

PAUL BUCHHEIT FOR BUZZFLASH AT TRUTHOUT

Three trillion dollars a year. That's how much the wealthiest Americans avoid through the system of subsidies and schemes and sweet deals that deprive middle-class workers of their earned benefits. That's three times more than the 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

These subsidies from special deductions, exemptions, exclusions, credits, capital gains, and loopholes are estimated to be worth 7.4% of the GDP, or about $1.1 trillion. They largelybenefit the richest taxpayers. Business subsidies bring the total to $1.25 trillion.

That alone is almost enough to pay for Social Security ($884 billion) and Medicare ($524 billion).

But there's so much more.


2. Tax Underpayments: $450 billion


3. Tax Havens: up to $250 billion



4. Corporate Taxes: $250 billion



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


6. Payroll Tax: $300 billion



7. Estate Tax: $100 billion


Conclusion

The total surpasses $3 trillion. The figures may be on the high end, and there may be some overlap, and wealthy Americans may argue that much of it is legal. But the system of loopholes and deductions and exclusions is a statement by the rich that they don't have to pay for their lopsided share of benefits, and that middle-income Americans should give up their own earned benefits to pay the country's bills.

And if tax avoidance is legal it's because the people with money have redefined 'legal.'

DETAILS AT LINK