IRS: Nearly 1,500 millionaires paid no federal income tax in 2009

[john dough]

Just because you cannot find them, does not mean that they do not exist. The yacht example is just one that I have read that is an example of evasion - the purchase was not "made" in the US so there is no tax (maybe you missed the international waters part).

The job losses you cite probably have their roots in deregulation and the loopholes that are allowing the people with means to NOT pay taxes; this has been something the GOP has been pushing since day 1. I have listed several companies that avoid paying taxes (by whatever scheme) yet somehow those go unnoticed. Let me know how the $60 billion yearly is supposed to be replaced and then get back to me.

Typical GOP argument; create an incentive to "save" jobs. The GOP does not care about jobs one whit; if a job is NOT lost, they will trumpet it as something that they did that is working. The reality is that they are constantly pushing for deeper, broader tax cuts for their investors (er, uh, the rich) and jobs, at any level, are not on their list.

How many people are going hungry in the US because of deep cuts to medicare and elderly care?

[JPK]

I hate hearing this bogus argument every time someone says the "rich" aren't paying their fair share" or "tax breaks for the rich". The same tax breaks the "rich" use are available to us non-rich too - we just don't usually have the excess resources to use them! They may not be paying big taxes today - but I am sure they paid a lot of taxes as they were getting rich!

Everyone understands that taxes are paid on earnings and gains - they are not paid on wealth (or stored earnings or stored gains) until you die (that is a whole other debate). You can be a millionaire today and not make earnings and gains to pay taxes on tomorrow.

You don't pay income tax on wealth - thats why they call it "Income" tax!

If you have 1 trillion dollars sitting in your mattress today, you probably don't have to work or "earn" much - therefor you will not be paying taxes on earnings! Duh.

As far as gains, this is usually how the rich get richer - they invest their wealth in big & small business, public bonds and other instruments that are designed to grow the economy. The way the economy has been in the last couple years, I bet most millionaires have been loosing more than you and I make in a year on their investments. Those losses offset any gains according to our tax code and may often time be greater than any current earnings! Also keep in mind that a large chunk of charitable contributions come from "the rich" too! Our tax code also allows us to deduct these donation from our earnings and gains too!

I would certainly bet they paid a lot on the earnings and gains it took to actually become a millionaire!

JPK

I have been reading more and more about the flat tax concept and it makes more and more sense. It is also a way to get everyone to have some "skin" in the game, which I think having 4X% of the population being takers not givers is the biggest problem with the system. Yes, I believe in social safety nets, but the system is totally abused and is to blame for a chunk of today's probems.

[JPK]

In reading the topic again, I think we are reading "IRS: Nearly 1,500 millionaires paid no federal income tax in 2009" but hearing it as "IRS: Nearly 1,500 people who earned a million dollars or more paid no federal income tax in 2009"

I think we are just interpreting this wrong.

JPK

[Bill in NC]

Back to the original topic, it is not 'evasion' when the loopholes are part of the law.

As Grace pointed out, a small minority of millionaires paid no U.S. income tax because they either:

1. Gave most of that income away via the charitable deduction.

2. Paid foreign taxes and took those taxes as a credit against U.S. tax liability.

I don't foresee the above loopholes being repealed anytime soon.

And where one buys a yacht is a state sales/use tax issue, not a federal income tax issue.

IIRC it was in the news recently that one politician bought their yacht in a different state to avoid the higher sale tax in their home state but I didn't see any of their constituents accusing them of tax evasion.

[Mac1337]

How do we know the headline isn't this "IRS: Nearly 1,500 millionaires with a net zero income paid no federal income tax in 2009". Income means nothing unless you figure in losses. JD should now that. His "busyness" expenses are cleverly calibrated to put him in whatever tax bracket he wants to be.