Eli5 How does billionaires evade paying tax and not get arrested?.
In: 0
It isn’t so much that they evade paying tax, as much as it is that they utilize the rules of the system to their advantage.
With income tax, you are able to reduce your taxable income by doing things like donating money to charities. So for example, if you make 1 million dollars of taxable income, but you donate 50K to charity, you won’t have to pay any income tax. (I don’t know the exact math here, but that’s the gist of what they do). They still are making money, but they reduce their taxable income through donations and the like.
Latest Answers