The core problem: Not all income is verified equally nor taxed equally, if at all. The current tax system is has big holes that can be easily closed by tweaking our existing law. In terms of drafting new law—that’s easy. Getting the American people to demand it and overcome the influence of those who currently benefit is another matter entirely.
The first hole allows corporations and partnerships to earn now but pay their income taxes by-and-by. The second hole is income from legal sources that the IRS never knows about, especially in real estate and art. We’ll examine this second hole in a future DCReport article. Unlike you and me, corporations and certain partnerships large enough to afford sophisticated advice–and super-rich individuals who own and control big businesses–get to earn now and pay much
This happens because Congress literally requires them to keep two sets of books. If that sounds like the kind of organized crime schemes made famous by Eliot Ness in pursuing Al Capone, you got it right. What should be a crime is now legal thanks to Congress.
The number for income tax that a big company like Amazon puts on its financial statement line does not indicate taxes actually paid. It’s not like your W-2 wage statement of taxes withheld from your paycheck and promptly turned over to our Treasury. That line (see Item 6) just shows the tax that the company may, someday, pay.
Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction