Pass-through.
Researchers explained the evolution of the top .01%: Reagan-era tax reforms increased tax liabilities for businesses and reduced them for individuals. While this has been great for small firms over the last three decades, it made the concept of the pass-through business more appealing for large business owners to game the system....
Pass-through enables rent extraction by the "working rich."
New Study Exposes How 21st Century Capitalists Game The US Tax System
Tyler Durden
Zidar also said these findings exemplify what is often overlooked in discussions of income inequality. There is an entire class of wealthy Americans who are gaming the tax system, by the way money flows through in human capital income.
These finds are a wake-up call for the need to reform the business tax system, the urgent need for more skilled workers and the need for better educational opportunities to empower the next generation of innovators and entrepreneurs,Zero Hedge“We show that if you look and decompose this income, a lot of it comes from these pass-through businesses, and that activity more closely resembles labor than the idle rich,” concludes Zidar. “Our results suggest that educating the country’s next generation of innovators may be more important than tax incentives.”You now know how the top .01% game the tax system.
New Study Exposes How 21st Century Capitalists Game The US Tax System
Tyler Durden
1 comment:
More reason to preclude unjust wealth disparity to begin with.
Ooops! There goes the current banking model if we did that, which is great at creating wealth, at least for a season, but acts to preclude the just distribution of that wealth since why should one share equity (via common stock issuance) when one can use that same equity to acquire what is, in essence, the public's credit but for private gain?
Post a Comment