Plutocrats

You see a lot out there about the 1%, but not so much about the real enemies of the middle class, the 0.1%.  The American Prospect has detailed issues regarding taxes, and has labeled these top 115,000 individuals in the USA as “the plutocrats.”

The top 0.1 percent consists of 115,000 individuals and families with an average income of $9.44 million. 40.8 percent of the top 0.1 percent are executives, managers, or supervisors of non-finance firms, and 18.4 percent are in the financial professions

This article confounds the separate issues of individual tax avoidance and tax fraud with corporate tax evasion strategies, but the overall point is the same either way:

The IRS estimates that only about 1 percent of wages reported by employers to the government are underreported, but underreporting could be as high as 56 percent where there is no outside reporting of income to the IRS. That describes most of the income of the very rich, which comes from capital income and very complex financial plays designed to maximize profits and minimize taxes. The plutocrats’ wealth grew from 7 percent of all U.S. wealth in 1978 to 22 percent in 2012. Failure to enforce tax collection was not the primary reason, but it intensified the trend. Far more important were the tax expenditures (subsidies) that only benefited the very rich, enacted by Congress at the behest of the plutocrats’ lobbyists.

People think that a simpler tax code is desirable so that they can spend less time doing their own taxes, or avoid paying someone to help them.  That’s not it at all.  A simpler tax code is desirable so that the plutocrats lose all their tax loopholes.

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