Wealthiest Americans pay just 3.4% of income in taxes, investigation reveals

[PSPS]

5. That won't work. It just guarantees dynasties.

Here's how it works:

The fat cat's wealth is accumulated in stocks. This is why CEO's receive a modest "paycheck" but get a lot of "stock options" as compensation. (This is also why big corporations spent their PPP bailouts on stock buybacks instead of what it was really supposed to do so their stock price would rise.) So, you're a fat cat whose cash wealth is, say, a mere $100K but your stocks and options are worth 100 billion.

You finance your day-to-day "expenses," (GOP "campaign contributions," trophy wife, the second dozen overseas palaces, hush money to the hookers, etc.,) by borrowing against the 100 billion in stocks/options, so it isn't taxed (borrowed money is not considered taxable income.) Very little interest, if any, is charged on these "loans."

So, you're sitting pretty, essentially paying no taxes since your "paycheck" is $100K/year.

Now, you kick the bucket. You bequeath your stock/options portfolio to your spoiled and entitled spawn who inherits it with its basis now calculated AT CURRENT PAR VALUE. In other words, they can cash it out completely with no taxable income to report.