Senator Has Plan To Crack Down On Tax-evading Billionaires

Big ProPublica investigation showed how Jeff Bezos, Elon Musk and others of the super-rich have gotten away paying zero federal tax.

Jeff Bezos, now the world's richest man, got away with paying nothing in federal income taxes in 2007.

He did it again four years later.

Multimillionaire Elon Musk did the same thing in 2018.

Former New York mayor Michael Bloomberg joined them in recent years, as did billionaire investor Carl Icahn.

All while millions of average Americans are actually paying taxes — and, often struggling to make ends meet.

These were some of the conclusions from the recent groundbreaking investigation from ProPublica, the nonprofit news organization.

Jeff Bezos is just one of the richest Americans who have paid nothing — or near nothing — in federal income taxes

Not only did the expose spark outrage, but it's also prompted a policy response from Congress, such as from Sen Sheldon Whitehouse (D-RI), chair of the Senate Finance Subcommittee on Taxation and IRS Oversight.

“Regular Americans pay their fair share, while some of the wealthiest U.S. taxpayers contribute next to nothing on billions in income. We need to pass my Buffett Rule bill to set a fair baseline for millionaires and billionaires, and pass reforms to address the mega-rich earning tax-free billions off their massive fortunes,” Whitehouse said. “We also need to pass my legislation to prevent wealthy taxpayers from stowing their income in overseas tax shelters.”

Whitehouse’s Paying a Fair Share Act would ensure multi-millionaire and billionaire taxpayers pay at least a 30 percent effective tax rate. The bill was inspired by billionaire investor Warren Buffett, who has said he pays a lower percentage of his income in taxes than his secretary.

Whitehouse has also introduced the Stop Tax Haven Abuse Act to crack down on offshore tax evasion by the super-rich, which contributes to the growing tax gap. It would also close offshore tax loopholes that allow companies with armies of lawyers to avoid taxes by making profits earned here in the United States, magically appear on the books in tax havens like the Cayman Islands.