Week 4: Taxes

"'In this world nothing can be said to be certain, except death and taxes."

- Benjamin Franklin

Benjamin Franklin wrote in a letter to Jean-Baptiste Leroy the above quote after discussing the potential permanency of the U.S. Constitution. However, in recent years, increased reporting on taxes revealed that the some of the largest companies and wealthiest individuals in the U.S. are not only paying a lower tax rate then the poorest U.S. individuals, some are paying close to none at all! In this week's Tuesday Drop, I have a few good videos that will help you understand how tax codes, funding, and other laws have changed over the years. These changes have allowed for rampant tax avoidance, both illegal and legal, to increase over time.

1. Tax Breaks!: While the U.S. is dealing with a rise of income inequality, and the problems that come with it, the U.S. tax code only makes this problem worse. This video explores how tax breaks like charitable donations are much more advantageous for the rich.

Watch How Tax Breaks Help the Rich by Vox

2. Tax Havens: In 2016, the law firm Mossack Fonseca had a 11.5 million document leak that came to be known as the 'Panama Papers.' This leak showed the world how many companies, world leaders, and celebrities have been using shell companies to execute a combination of tax avoidance and tax evasion. This leak has been used to combat some of this tax avoidance, but it scratches the surface of just how much money is truly hidden. Whether through tax evasion or money laundering, shell companies in the US and around the world are hiding money.

Watch How the Wealthy Hide Billions Using Tax Havens by Business Insider

3. Who really pays the least in taxes?: While certain news and media may portray the lower and middle class as paying less than (percentage wise) what the upper class pays in taxes, this video broadens the scope of what people are really paying in taxes as a whole, and how that compares across different income levels.

Watch Who Pays the Lowest in US Taxes by Vox

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