For some, being the President pays off.
Just ask former President Barack Obama who has acquired a series of properties from Martha’s Vineyard to Hawaii and now says, he’s ready to pay more taxes because he can afford it.
Speaking in an interview on ABC’s “Good Morning America,” the former President said that the rich need to pay more. “They can afford it, we can afford it – I put myself in this category now,” he said.
“I think anybody who pretends that it’s a hardship for billionaires to pay a little bit more in taxes so that a single mom gets childcare support or so that we’re doing something about climate change for the next generation, that’s an argument that’s unsustainable.”
He continued, insisting that the $3.5 trillion stimulus package President Joe Biden wants is not really that much money because “that’s not a single year.”
“And most importantly,” he explained, ” it’s paid for by asking the wealthiest of Americans to pay a few percentage points more in taxes in order to make sure we have an economy that’s fair for everybody.
In 2020, 61% of all Americans paid no federal income tax. According to the tax foundation, the top 1% of earners paid 40.1% of the entire federal bill and, the the top 10% of earners paid 28.6% of the entire federal income tax.
Meanwhile, although the President (and now Obama) have indicated they want to tax the rich more, the administration has still refused to adjust the tax loophole afforded some of the wealthiest private equity bankers on Wall Street.
The carried interest private equity tax loophole allows billionaires to pay a lesser income tax rate than New York City fire fighters. The reason is that the loophole, allowed by both parties, enable high earners in the PE industry to treat their income as investment, thereby benefitting from a far lower rates.
The industry donates heavily to Washington politicians and critics believe politicians are reluctant to tax their biggest donors more.