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Drudge Retort: The Other Side of the News
Wednesday, December 08, 2021

Donald Trump and other ultrarich Americans have earned billions, but they've also managed to repeatedly avoid paying any federal income tax by claiming huge losses on their businesses.

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This is how the uber wealthy bribes congress to write tax laws that favor them and allows them to scam the system by arguing for ultra favorable rates and using debt as capital to write off paper losses generated by writing off hard assets on tax returns.

That is why billionaires pay an effective tax rate of 8% vs a middle class self employed person that pays a rate close to 50%.

The system is rigged so the very rich pay very little.

#1 | Posted by Nixon at 2021-12-08 08:22 AM | Reply | Newsworthy 3

All legal. Especially in any industry dealing with real estate, there are methods of depreciation which seem egregious. With a private bank they could even margin a physical asset's equity and use it as a line of credit for day to day cash expenses.

"Positive cash flow and revenue exceeding expenses? Sorry IRS, kinda broke after last year's carryover loss and after the depreciation schedule is factored in."

#2 | Posted by GOnoles92 at 2021-12-08 09:59 AM | Reply | Newsworthy 2

Eberly will be coming in soon, I'm sure to explain why both parties write the same tax laws...we are just dumb or something.

#3 | Posted by bocaink at 2021-12-08 10:39 AM | Reply

With a private bank they could even margin a physical asset's equity and use it as a line of credit for day to day cash expenses.

This is what paper Millionaires do. Leverage their stock for loans for life, while the stock climbs they can live off of it without paying income tax.

I can't imagine a way to combat this practice. Capitalism has gone off the rails.

Originally, people would pool their money to spread the risk across multiple boats to earn a profit upon their return; thats when everyone gets paid. Has turned into a lets pool the money, then abscond it for loans, never produce a product and get bought. Its BS.

I am also slow to like the idea of a "stock market" again Capitalism was originally to spread risk for a product/reward at the end. Kickstarter is capitalism, what we have is just BS. :)

#4 | Posted by oneironaut at 2021-12-08 10:46 AM | Reply

Eberly will be coming in soon, I'm sure to explain why both parties write the same tax laws...we are just dumb or something.

Well, Eberly isn't wrong, they certainly aren't changing them.

When will the Dems do what needs to be done, never.

#VoteTheBumsOut
#TermLimits
#FightThePerson

#5 | Posted by oneironaut at 2021-12-08 10:48 AM | Reply | Funny: 1

#5

YA vizhu chto ty sdelal

#6 | Posted by bocaink at 2021-12-08 12:14 PM | Reply

Related...

When You're a Billionaire, Your Hobbies Can Slash Your Tax Bill
www.propublica.org

...Thoroughbred horses, auto racing, massive ranches, luxury hotels. The hobbies and side businesses of the ultrawealthy create huge write-offs that can let them get away with paying little or no income tax for as much as a decade at a time. ...

#7 | Posted by LampLighter at 2021-12-08 01:01 PM | Reply

Income disparity will eventually be the downfall of American society. It already seems to indirectly be threatening our democracy (- tip of the hat to Citizens United).

#8 | Posted by moder8 at 2021-12-08 01:26 PM | Reply | Newsworthy 1

When will the Dems do what needs to be done, never.

#VoteTheBumsOut
#TermLimits
#FightThePerson

#5 | Posted by oneironaut at 2021-12-08 10:48 AM | Reply | Flag:

The problem with the democrats is that they are unable to get two red democrats to support their agenda. Sinema and Manchin take millions in donations from the 1% and do their bidding. Does it suck? Yes. Is it better than having the senate with 52 GOP seats? Also yes.

The answer is to elect more solid democrats to the Senate.

But the puritopians will see these two senators blocking everything and say "ThE dEmOCRats CanNot GEt anYthInG DOnE!" and vote for a GOP senate.

#9 | Posted by Nixon at 2021-12-09 08:57 AM | Reply

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