IRS Ultra-rich Skip Estate Tax and Spark a 50% Collapse in Irs Tax Revenue

Before getting into the main topic, it is important to understand some of the following concepts.

Source of Federal Government Money and From Where It Is Collected?

In the fiscal year 2020 (Oct. 1, 2019, to Sept. 30, 2020), the US federal government has collected about 3.42 trillion US dollars. Taxes play a key role in this revenue as the majority of revenue is collected from taxes.

If you are the one who lives in the United States, you are most likely to have contributed to the revenue of the United States.

In 2020, almost half of U.S federal government taxes about 1.6 trillion have come from citizens of the United State as individual income tax, a significant amount of money has come from corporate income taxes (two hundred and twelve billion dollars) as well from payroll taxes (one thousand three hundred and ten billion dollars) which are paid by employees.
The second-largest source of U.S federal government revenue is Social Security and Medicare taxes. Unemployment insurance, which is paid for by your employer, makes up a small part as well. Other sources of tax revenue include corporate, estate, and excise taxes.

(Excise taxes are those paid when purchases are made on a specific good, such as gasoline). The government also receives revenue from the payment made to federal agencies. These include admission to national parks, licensing fees for vehicles, weapons, pets, etc.

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How and Where the Government Spends Money?

U.S Government spending can be categorized into three main types: mandatory, discretionary, and interest payments on federal debt.

Programs like Social Security and Medicare are considered mandatory spending. Mandatory spending is spending designated by prior laws. It is established by the congress act that shows the amount of money budgeted for spending each year. 

IRS

Discretionary spending is approved by the president, and it is the spending that is voted on by congress by the appropriation process.

Most discretionary spending is budgeted toward national defense; the rest is budgeted to other federal agencies and support programs including transportation, education, housing, social service programs, science, and environmental organizations. 

The federal government provides money to pay for interest on the federal debt in addition to providing programs and services for its population.

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Irs Revenue Collapse to About Fifty Percent

Revenue accumulated by the U.S government has been cut in half in the last two years. New statistics from International Revenue show a dynastic wealth accumulation.

In 2020 Just one thousand two hundred and seventy-five wealthy families paid 9.3 billion dollars in the estate tax to the U.S Treasury. Married Couples can now transfer about 23.4 million dollars over their lifetime’s tax-free over but Ultra-rich families who generate hefty sums can hire their financial advisor to circumvent the tax. 

Nike Inc. founder Phil Knight used various techniques and methods to transfer billions of dollars to his family tax-free, according to the report published by Bloomberg last month.

The estate tax collection of less than ten billion U.S dollars now represents an imperceptible share of the revenue for the federal government, which in the last fiscal year collected more than four trillion dollars. The modern estate tax was introduced in 1916 to help counter the growth of dynastic wealth.

Even before the tenure of former President Donald Trump lawmakers has given ease to state tax rules hence revenue generated through levy by the U.S government had stagnated despite a surge of wealth had been observed among the ultra-rich.

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According to the Bloomberg Billionaires Index, in the last five years, most of the billionaires in the United States have doubled their income to more than five trillion dollars.

At the top of ultra-rich families are the heirs of Walmart Inc. founder Sam Walton, worth more than two hundred billion dollars. Internal Revenue Service data also provide some insights that were the U.S.’s largest fortunes, including where they are located. 

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