/Sarcasm – so what, it’s those evil rich who don’t pay their fair share anyways, screw them!
1. First of all the John Kerry like rich often pay less than 13% of their income in federal taxes and there is a reason why so many Democrats in the Senate are super rich; they design the tax laws so that much of their income is defined as non-taxable income or they legislate other favors for themselves.
2. The investment class didn’t get to be the investment class by not know what to do with money, they will move wealth to China or move it off shore in many circumstances anyways. This causes American economic casualties because they money isn’t being put to good use here in America. When investment or risk taking class is under assault by our government and society, why would they do business here. Money and capital go where it is treated best, which isn’t America. This costs jobs.
3. So what is left? The productivity class, the upper middle class, small to medium-sized businesses who employ more than a dozen people, are defined as “the rich” in the tax code and they are the ones who pay a huge amount of taxes and can produce and hire less as a result.
4. The top 10% of wage earners pay 50% of all income taxes. These wage earners are NOT the John Kerry rich nor are they the investment class, these are the upper middle class and the productivity class.
The IRS high wealth unit, part of a broader effort to combat international tax evasion, is focusing on “the entire web of business entities controlled by a high wealth individual,” IRS Commissioner Doug Shulman told a tax conference this week.
Another IRS official told Reuters “hundreds” of people have already been hired to staff the new unit, including some from within the agency.
“We have drawn top talent within the IRS that have expertise involving wealthy individuals as well as examination of their related entities,” said Mae Lew, an IRS special counsel.
The high-wealth unit is focusing on trusts, real estate investments, privately held companies and other business entities controlled by rich individuals.
While use of sophisticated legal structures can be legal, in other instances they “mask aggressive tax strategies,” Shulman said.
Will they get some of the people in the investment class who are hiding their money from an increasing assault upon them by the U.S. Government, sure they will, but the money they recover will be a drop in the bucket compared to the loss in confidence and under siege feeling these people will have which will keep even more of their wealth going to China. The capital gains tax rate here in the US approaches 30%, in China the rate is ZERO as China just appreciates people taking risk by investing in China. If you were a member of the investment class what would you do?