Department of the Treasury: the richest Americans are underpaying billions of dollars in taxes

According to the U.S. Department of the Treasury, the tax arrears resulting from legal tax evasion amount to $ 600 billion.

According to a new report published by the U.S. Department of the Treasury, the richest Americans have not paid hundreds of billions of dollars in taxes to the treasury that they owe to the government.

The document says that 1% of the largest taxpayers did not pay about $ 163 billion in taxes to the treasury last year, which is about 28% of the total amount of unpaid taxes. In comparison, 5% of the largest taxpayers did not pay a total of $ 307 billion, or 53% of the total amount.

The Ministry of Finance called “shocking” the amount of tax arrears in general – $ 600 billion, which is about 3 percent of the GDP of the American economy, which is almost $ 23 trillion. The same amount, in total, is paid to the treasury by the remaining 90% of taxpayers from among the population with a lower income.

The report says that the richest account for the largest part of the arrears because these people have the financial resources to allow them to hire accountants and tax consultants “who help protect them from… tax obligations.”

The Finance Ministry added that rich taxpayers often have opaque sources of income from business partnerships, private property, and real estate rentals. On the contrary, for most working Americans, federal income tax is deducted from their regular salary and sent to the state treasury directly by their employers.

The country’s authorities have long known that the richest Americans avoid paying extra taxes in every possible way, but legislative efforts to solve this problem have almost always failed.

As part of his plan to stimulate the economy through new spending on expanding social protection for citizens, President Joe Biden calls for higher taxation of corporations and individuals earning more than $ 400 thousand a year and proposes to expand the staff of the Federal Tax Service.

However, many lawmakers, especially Republicans, who traditionally defend the interests of entrepreneurship, have so far resisted increasing the staff of the tax department. Congress is currently debating the Biden administration’s proposal for an expanded $ 3.5 trillion infrastructure spending package – in addition to the $ 1 trillion bipartisan infrastructure package.

The fate of both bills is still unknown.

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Author: Ivan Maltsev
The study of political and social problems of different countries of the world. Analysis of large companies on the world market. Observing world leaders in the political arena.
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Ivan Maltsev

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