Eli5 How does billionaires evade paying tax and not get arrested?.
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A billionaire might have a legit tax bill of $500 million in a given year so instead, they will spend $10 million hiring a team of accountants and lawyers who help them:
– create a bunch of fake businesses around the world
– hire family members to fake jobs that pay hugely inflated wages so that they can claim their salaries as an expense to lower their tax burden even though the money is just going right back to the billionaire
– set up various bank accounts around the world and then moving their money constantly making it an extremely difficult and time-consuming process for the IRS to even track how much money there is or where it came from
– bribe politicians that in turn defund the IRS or cut inheritance, income, capital gains, property or other wealth taxes, or even write and pass new laws that make their tax fraud schemes and loopholes legal but only accessible to the ultra-wealthy
– spread pro-billionaire, anti-income-equality propaganda
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