We’ve all heard tell of billionaires who can’t be bothered to pay taxes. Yet, how are they able to accomplish such a thing?
The top earners in America simply hire the best tax lawyers, who understand which tax loopholes are best able to keep money from going toward building roads and maintaining social security benefits. It’s not surprising, then, to learn that earners with an annual income of $10 million typically pay a 19% tax rate, or that estimated tax revenue losses are estimated to be around $70 to 100 billion each year.
Some of the most frequently used methods of skimping on taxes including sending money overseas and freezing assets. The wealthy are able to save money for a rainy day by transferring assets to their children, effectively freezing their worth and eliminating the need to pay taxes on them for many years. For the wealthy, the Cayman Islands are a popular place to do some banking. It’s estimated that about $21 trillion has been funneled into offshore accounts, effectively lowering tax bills for the wealthy.