Tax Avoidance On the Rise: It’s Twice the Amount of Social Security and Medicare

The wealthiest Americans save $3 trillion dollars a year through a system of subsidies and tax avoidance schemes, which totals three times more than our annual deficit. That’s enough for a full-time job for every middle-class household in America. Here are the distressing details:

1. Tax Expenditures: $1.25 trillion

2. Tax Underpayments: $450 billion

3. Tax Havens: up to $250 billion

4. Corporate Taxes: $250 billion

For over 20 years, from 1987 to 2008, corporations paid an average of 22.5 percent in federal taxes. Since the recession, this has dropped to 10 percent — even though their profits have doubled in less than ten years. The missing 12.5 percent on $2 trillion in profits amounts to $250 billion a year.

5. Financial Transaction Tax (FTT): $500 billion

6. Payroll Tax: $300 billion

This extremely regressive tax costs the richest Americans only a small fraction of what everyone else pays. If the 12.4 percent tax (half employer, half employee) were assessed on the full $3.84 trillion claimed by the richest 10 percent in 2006 (instead of on $1.43 trillion: $110,000 times 13 million payees), an additional $300 billion in revenue would have been realized.

7. Estate Tax: $100 billion

Conclusion

The total surpasses $3 trillion.

FULL POST: http://www.cagle.com/2013/01/tax-avoidance-on-the-rise-its-twice-the-amount-of-social-security-and-medicare/

Paul Buchheit is a college teacher, an active member of US Uncut Chicago, founder and developer of social justice and educational websites (UsAgainstGreed.org, PayUpNow.org, RappingHistory.org), and the editor and main author of “American Wars: Illusions and Realities” (Clarity Press). He can be reached at paul@UsAgainstGreed.org.