The rich don't care if Trump or Biden wins.

7 Reasons the Rich Don’t Pay Taxes

The ideas on which tax loopholes are based

Do you know the history of taxes? There was a time that there was no tax. But gradually, it became the norm. At first, taxes were imposed on people in times of war to aid the defence. But governments fell in love with the idea and made it permanent.

Taxes are not a bad thing. It is a token given to the government to run and organize society. It becomes a bad thing when those in government have selfish interests. However, taxes can become overbearing for the people.

Some believe that governments can afford to stop taking taxes. The idea is that they get to own all the natural resources discovered in a country. And they have the capacity to develop income-generating industries. But most countries can’t stop taking taxes because of their control of monetary policy.

Taxes have also been a tool to fool naive people. When governments want to raise taxes, they always begin by saying that the taxes are for the rich. Nobody ever admits that it is the poor and working-class that will pay it. So when this “tax the rich” idea is sold to the people, they support it. But when the legislation is being drafted, the rich use their connections to include some loopholes.

A year or two after the law is passed, the government discovers that all the rich people targeted have already dodged the legislation and it is no longer bringing in money. Therefore, they extend it to regular workers. The problem is that regular workers cannot dodge it like the rich. And thus they become the perpetual taxpayers.

The rich don’t pay taxes. And the reason is that they can afford not to. Every attempt by any government to tax the rich always ends up throwing the working-class under the bus. It always does. It could only take some time.

Not paying taxes is a matter of negotiation. Do the rich need the government or the government needs the rich? The government needs the rich. The rich don’t need the government. The rich have other options as there are other countries. But a government that frustrates the rich will descend into the abyss with time.

Here are 7 reasons the rich don’t pay taxes:

1. The Rich Don’t Get Paid

Regular working-class people get paid wages, salary, income, etc. The rich don’t get paid anything like that. Whenever you hear things like income taxes, just know that it is not touching the rich.

Check what the salary of Warren Buffet is. Then Check the salary of Larry Ellison. Then check that of Jeff Bezos. They run public companies, so their salary information is public. Just check Google. Can you see it?
Just think about that. Larry’s basic salary is $1. How can that be taxed? All regular people have is their income. The rich can afford to make their salary as low as they want to because they really don’t need it. So, income tax never gets to the rich. Their income is just a buffer. It is always a modest amount.

Rich people in the spotlight often have some sort of amount as income just so that they can pay taxes (to attract goodwill). But the unknown ones are not under such pressure. Many of them have zero as salary.

So, how do they do it? You’ll know soon.

2. The Rich are Encouraged to Keep their Money in the System

When you have $1 billion dollars, the government is more particular about making you keep your $1 billion in the economy than to take some $250 million from you. There are less than 3,000 billionaires in the world. They can move their money into any system they want to.

If the rich move their money, the economy will feel it. And the government will be left to deal with the situation that grows from it. So, instead of the government taking a small percentage off the wealth of the rich, they encourage then to keep the 100% in the system. And this means to incentivize them to make that decision. And that means a tax loophole.

It is a simple system: you keep 100% of your money in the system, we take nothing. And the rich happily oblige to this.

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