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Taxes And The Ultra Rich

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Summary Argument: A recent leak of the tax records of the world's richest people showed how little they pay in taxes. This article argues that tax write offs for charitable deductions should be eliminated for the rich and the rich should voluntarily pay more taxes as another form of charity.  855 tokens
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     ProPublica recently published an IRS leak of the taxes of the wealthiest people. The highlights of the leak showed that some of the richest people in the world, including Jeff Bezos and Elon Musk, paid very little in taxes. In theory, the wealthiest people should pay the most taxes over time, especially as they earn or accumulate this wealth. In practice, the ability to defer taxes through capital gains and charitable deductions eliminates the tax payments.
     The richest people are often strong advocates of increased taxes and yet pay the least. It's almost a trope that Warren Buffett constantly says that his secretary pays more in taxes than him. The argument for higher taxes is pushed forward by Warren Buffett and Jeff Bezos. Yet they purposefully pay less taxes themselves. It's as if what they say doesn't match up with what they do.
     The richest people give the most to charity but dilute their beneficence through tax deductions. This is a kind of siphoning from the tax needs of the government to charity organizations. The intent of such donations is obviously to support worthy charities. But the richest people are the ones who can most afford to donate to charities without tax write offs. If Jeff Bezos and Mark Zuckerberg are only giving to charities because of its tax benefits, this is another form of bad faith in posturing themselves as signals of virtue for supporting worthy causes.
     The rich who are for increased taxes should pay more taxes voluntarily, no matter the letter of the law. They should view this as another form of their charitable giving. They should also voluntarily eschew any tax write offs for charitable causes. If Mark Zuckerberg or Jeff Bezos wants to donate billions of dollars to charities from their own wealth, that is something that should be encouraged. But there is no need for taxpayers to subsidize their donations through tax write offs.

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