Millionaires Don't Pay Taxes? 1,470 of America's Richest Didn't, According to IRS | The Informer | Los Angeles | Los Angeles News and Events | LA Weekly
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Economy

Millionaires Don't Pay Taxes? 1,470 of America's Richest Didn't, According to IRS

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Mon, Aug 8, 2011 at 3:12 PM

click to enlarge A free ride for some millionaires? - MATM
  • MatM
  • A free ride for some millionaires?
Southern California has more millionaires than just about anywhere else in the nation, with L.A. coming in at No. 1, Orange County at No. 4, and San Diego ranking No. 6 in cities with the most seven-figure-plus households in 2008.

So maybe we should feel a little guilty, especially as President Obama and the GOP are headed toward draconian federal cuts, the United States' credit rating is down a notch, and the stock market is diving like a conservative congressman in a bathroom stall.

Because many millionaires and billionaires, it was revealed today, don't pay taxes like you and me:

In fact, many don't pay taxes at all. Now, those familiar with the Mack-truck sized loopholes written into the tax code (example: the wealthy who make their money off capital gains only pay a 15 percent tax rate, if that) shouldn't be surprised.

According to a recently released IRS report (PDF), 1,470 millionaires and billionaires paid zero taxes in 2009.

The report states that donations to charity, investment in government bonds, and taking cash from overseas operations has resulted in a legit, $0-tax bill for these high rollers.

Of course, some Democrats in congress have been trying to eliminate tax loopholes and discounts as part of the debt ceiling debate. But while Republicans are gung-ho to cut federal largess in the name of a solvent Republic, they've been quick to protect those who live largest.

In fact, as we recently told you, the 400 richest earners across the land pay a 17 percent tax rate (yours is more like 35 percent).

If you're not pissed off yet, read David Cay Johnston's "9 Things The Rich Don't Want You To Know About Taxes."

[@dennisjromero/djromero@laweekly.com]

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