U.S. billionaires paid little to no income tax when compared to their wealth, according to a ProPublica report relying on leaked IRS tax filings. The non-profit newsroom said it obtained the cache of documents from a source, verified their accuracy, and gave each filer a chance to review the information.
Jeff Bezos, Amazon founder and currently the world’s richest man, paid no federal income taxes in 2007 and 2011. Neither did Tesla and SpaceX CEO Elon Musk, the second-richest person in the world, in 2018. Former New York City mayor Michael Bloomberg, businessman Carl Icahn, and billionaire investor George Soros have also avoided paying federal taxes several times.
In 2018, the top 25 wealthiest Americans paid a total of $1.9 billion in taxes. The remainder, wage-earning Americans, paid a colossal $143 billion.
“What we’re trying to show people is this complete, essentially, sidestep that only taxes one form of income,” said ProPublica reporter Paul Kiel in an interview with WCBS 880. Kiel and his colleagues combed through 15 years of tax data to compile their exposé.
“Taken together, it demolishes the cornerstone myth of the American tax system: that everyone pays their fair share and the richest Americans pay the most,” the report reads. “It is only by seeing specifics that the public can understand the realities of the country’s tax system.”
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While many Americans live paycheck to paycheck and pay Uncle Sam a percentage of their income, billionaires amass wealth from appreciating assets, like stock and property. The accumulating wealth is not taxable income unless it is sold.
“Our tax system is rigged for billionaires who don’t make their fortunes through income, like working families do,” said Sen. Elizabeth Warren (D-Mass.) in a tweet. “The evidence is abundantly clear: it is time for a Wealth Tax in America to make the ultra-rich finally pay their fair share.”
In a statement, billionaire George Soros reaffirmed that he believes wealthy Americans should pay higher taxes.
Press secretary Jen Psaki said the White House was looking into the “unauthorized disclosures of confidential government information,” but added that corporations and individuals with the highest incomes should pay more of their fair share.
The Biden administration has suggested changing the income tax rate. Kiel says that would not change the dynamic with billionaires because the system taxes income more heavily than it taxes growing wealth.
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