Monday, October 15, 2018

Elite Cheating in Real Estate Goes Unchallenged

Good Day World!

I was talking with a neighbor the other day and he complained about how the IRS was pressuring him to pay $2,000 in back taxes because his tax consultant made an error when filing his tax forms.  

The conversation went from the IRS going after the little guys to how the elite in this country get away with cheating.

After I checked with the IRS Data Book, I discovered some alarming facts.

A recent government court filing stated that gift tax cheating in real estate is rampant, ranging from a low of 85% of gifts in the more honest states, to 100% in others.

The recently published expose of the Trump family's fraudulent real estate dealings in the NY Times is the perfect example. 

FYI: the federal statue of limitations has expired (6 years) in regard to holding the Trump family accountable for their past misdeeds. The state of new York however, has expressed some interest in investigating the charges in the article. 

Startling fact: in the US last year, just 865 people were pursued for tax cheating that did not involve drug dealing, bribing politicians or criminal enterprise profits, according to IRS.

Here's what that means; the odds that you'll be pursued are about one in 377,000. Add in those crooks and the risk of prosecution rises, but only to about one in 100,000.

Like my neighbor and I suspected, the working poor get extra scrutiny. We can thank Bill Clinton and Trump supporter Newt Gingrich, for making a deal in 1994 that assured the majority of Americans get screwed. 

One of the reasons the IRS has been hampered in making investigations is that the American population has grown 27% but the IRS staff has shrunk by 34% to less than 78,000 people.

Another big reason for the inequity of our tax system is Congress has added an enormous complexity to the tax code under Trump's regime. That opened more doors for the big accounting and law firms who devised a slew of complex tax shelters.

Finally, the IRS told Congress it lacks the expertise to thoroughly investigate such shelters and determine which are within the law, and which are fraudulent and should be shut down. 

Is it any wonder the wealthy love Trump?

He's proud of gaming the system and has stated such in his rallies. He calls it "being smart."

Another NY Times article that recently came out on Trump's smart-ass son-in-law Jared Kushner's getting away with paying no taxes despite being worth over 300 million dollars. I wonder what the majority of Americans thought after hearing that?

I think, I know. My neighbor confirmed my thoughts when he suggested the elite 1% that own America are laughing at the rest of us chumps who actually have to pay our taxes!

Time for me to walk on down the road...  

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