How Americans Avoid Taxes

Taxes. Individuals and corporations must pay them but it’s always a game of trying to pay the least amount.

At least 55 of the largest corporations in America paid no federal corporate income taxes on their 2020 profits, according to the Institute on Taxation and Economic Policy. Some of these companies include big names like FedEx, Nike, HP and Salesforce. Those 55 corporations would have paid a collective total of $8.5 billion. Instead, they received $3.5 billion in tax rebates, collectively draining $12 billion from the U.S. government. These estimates don’t include corporations that paid only some but not all of these taxes, like Netflix and Amazon.

The more money you make, the more you have to pay in taxes, right? Not always. The ultra-wealthy typically take advantage of rules in the tax code which enable them to lower their effective tax rate. Warren Buffet has often pointed out that he pays less taxes than his secretary and Amazon famously paid zero taxes in 2018. So how exactly are the country’s biggest earners using the tax code to avoid paying taxes?

And on a state level, to balance their budgets during the coronavirus pandemic, states including New Jersey and New York have raised taxes on the wealthy. Conservatives warn that it will cause many of those who left in the early days of the pandemic to make those moves permanent since they’re no longer bound to the physical locations of their offices as many businesses adopt remote or hybrid work. But available data from 2020 show that the so-called exodus wasn’t as pronounced as initially projected, and the urban exit that did happen, was to suburbs rather than low tax states.

CNBC explores how the most profitable companies in the country maneuver the complicated tax system to avoid federal corporate income taxes, how wealth individuals use the tax code to lower their taxes and if tax flight is a myth.

SEGMENTS:
00:00 How Companies Like Amazon, Nike and FedEx Avoid Taxes (April 2022)
11:23 How The Rich Avoid Paying Taxes (May 2021)
22:31 Are Rich People Fleeing Places With High Taxes? (April 2021)

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How Americans Avoid Taxes

[abcdLeeXY]

Low income you got state and federal assistance
High income you got state and federal loopholes
Middle class pays the highest per dollar earned in America with the least state or federal benefits

[Kahoobb]

Misleading title, I was gonna watch this as i am an american and want to avoid paying taxes but this is about corporations and ultra wealthy individuals. I want to know how to avoid taxes as a common person.

[HexaBoxabl]

Your business will make you rich but investment makes and you keep you wealthy, we all deserve to be successful and have financial freedom, I pray everyone here becomes successful

[stephenpotter]

I personally put my money mostly in the stock market, since its appreciation is not taxable, and then when I sell, I find ways to make the income non-deductible in taxes. I 'm currently sitting on more than $327k of cash, and I'm throwing it in the market. Just thinking of how to not lose it all, since the market is red.

[terpjr]

The opening remark by Biden is priceless. He speaks as if he wasn't a member of Congress for the last 500 years. If he had a problem with the tax code, he should have done something about it.

[JK-zwec]

We need a report about all of the tax money our federal government wastes.

[stevensmiddlemass]

If we are being honest with ourselves, taxes may be a major pain, just like they are for the wealthy. Taxes on income, goods and services, real estate, etc. It's wonderful to pay taxes, but we may also establish our own tax havens. Since stock market appreciation is not taxed, I personally invest most of my money there. When I sell, though, I discover ways to make the profit tax-deductible. I presently have about $327k in cash, and I will surely put it on the market. Considering how to avoid losing everything given that the market is in the red.

[lindapoplin]

Every family has that one person who will break the family financial struggles, I hope you become the one 🙏

[hankwells]

As a government auditor and economist don’t let this 8 billion dollars distract you from the fact the US government is spending TRILLIONS of dollars over budget. No amount of money/ tax increase will satisfy the horrific inefficient government spending. This is a distraction from the current financial crisis of the US.

[dcDOC]

"Tax codes are written by millionaires and funded by billionaires..." Not surprised ordinary folks loose out.

[Pseudify]

Here’s a thought. Instead of vilifying corporations for following the ridiculously complex tax code as well as they can, why not put the blame where it belongs - the US congress and the White House who makes and enforces these laws.

[shadows]

"Don't hate the players, change the game."
This is totally the fault of Democratic and Republican politicians.

[FRISHR]

"The Golden Rule: Whoever has the Gold makes the Rules."

[tigerrx]

CNBC: let’s show them something that won’t be FIXED because the beneficiaries ARE the authors of the tax laws.
🙄

[rhealyngalaus]

I recommended a to you guys sometime ago, can I get person who invested with her Mrs Camilla mc Coy comment below

[Danc]

That’s like saying having locks on your home cost thieves millions each year.

[Dfgbuiiyyyybb]

Bailouts for corporations that report record profits and pay little to no taxes are some how acceptable…

bailouts for poor people that lost their jobs are seen as “hand outs”… “free loaders” and vilified.

[rileyxbell]

Being self employed for 5 years the difference in tax breaks you can get is huge compared to someone working a normal job. I barely paid any taxes for 5 years to expenses and other loopholes and tax credits

[dvaz]

What is really lost in this video is the fact that it’s not the companies fault that they are not paying taxes but it’s that the government has written the tax code in such a way that they have done nothing illegal.

[onjofilms]

I thought Trump was going to fix all that because he knew the tax code like nobody else.