Eli5 How does billionaires evade paying tax and not get arrested?.
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There’s a distinction between tax avoidance and tax evasion. Tax evasion is a crime, while tax avoidance is more using tax laws in specific ways that aren’t obvious or necessarily available to everyone.
Billionaires generally don’t evade taxes, since that’s an unnecessary risk and could wind them up in jail (in theory). Tax avoidance is far simpler, and it just costs money to hire accountants and tax lawyers to do – it’s not cost effective for a little person, but for a billionaire saving a couple percent on taxes can far outweigh the cost of hiring the people who know how to do it.
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