| >Though I'm guessing tax returns for billionaires are a little more complex than what a Form 1040 can handle When it comes to wealth, the world is divided into two basic groups:
1. Those with sufficient wealth that they and their family members will never need to hold a job in order to earn an income to survive. 2. Everyone else who must earn an income to survive. It is important to understand that, in the United States, Group One people only pay taxes because they invest their money. They have enough money right now (100 million or more) that they could simply put the money in a bank vault and rely upon those funds for the rest of their lives without the need to even file tax returns. They don't do that because they want more wealth. They want to invest their wealth such that it doubles every 10 years or so. And so they incur taxes to the extent their investments produce dividends or if they sell some stock for the purpose of investing the proceeds into a different investment. Of course, they only do this because they are convinced the new investment will return a much higher rate then the investment they are moving out of - after taxes. Otherwise, they wouldn't change investments. Group Two has no choice in the matter. They do not have sufficient wealth to not work. So they work and earn wages which is always taxed. Group One hold power and they essentially hold a veto over laws they are absolutely opposed to. Why do you think the US Government obtains its funds via a tax on income? Group One does not have income and thus contributes nothing to the cost of running the government - unless, as I've already addressed, they DECIDE for themselves that it is worthwhile to invest their money - and even then they only get taxed when they switch investments (or dividends). But they are not being taxed because they must work. That is why it is laughable for Trump and the Republicans to be "debating" whether or not to tax the rich. But do not believe for one second that taxing the rich is the same thing as taxing the wealthy. The rich are Group Two people who earn very high wages. But the taxes being discussed are of no real interest or concern to Group One people. |