I think this is highly dependent on who we’re specifically taking about and what constitutes wealth/poor. It is true that some people, but especially companies, have elaborate schemes to minimize taxes. The fundamental problem however is the very basic legal loopholes that are present in our tax code that most of the political class has no intention on changing because it would negatively affect their biggest donors (and perhaps in some cases also would negatively affect their own personal finances).
I live in the tax bracket of paying an high income tax rate and therefore paying a tax bill that’s almost nauseating to think about.. only compounded living in a highly taxed and high cost of living state like Massachusetts. But I don’t have the income level nor the massive accumulation of wealth required to partake in elaborate tax schemes.
This is not to say woe-is-me. I agree someone making less money should be taxed at a lower rate. I’ll even entertain the idea that the ultra-wealthy pulling in millions could pay a slightly lower percent given how large the sum translates to… But if my wife and I are in a tax bracket paying 1/3 of our income to taxes while some of the wealthiest Americans pay 0.1% effective income tax rates, it’s inexcusable and absurd. Slightly lower in my mind does not mean going from the highest tax bracket (37% IIRC) to 0.1%.
It is the left that routinely addresses the low taxation of billionaires, a valid point in my mind. But for some reason they tend to attack the billionaires themselves as if anyone is ever going to intentionally overpay on their taxes… I’m pretty sure the IRS would automatically refund you, suggesting to me a system for overpayment doesn’t even exist. Unfortunately, I do not believe there are many in congress who are actually willing to create meaningful reforms on this.
And while Biden has invested $80B to the IRS and some significant number of employees (what that number is varies greatly depending who you ask, but low end est 20-30k employees). I don’t believe this will have any difference on the ultra wealthy who are already following the tax code allowed by government. I’m not assured by Biden’s assurances that this will only target those making >$400k. I’m concerned this effort will end up going after middle class families who will be seen as easy targets given the population size and reduced ability (if any) to hire expensive tax lawyers.
