(PresidentialHill.com)- According to newly released Internal Revenue Service (IRS) data, billionaire Michael Bloomberg, a failed Democrat presidential primary candidate and former mayor of New York City, pays less than half the federal income tax rate paid by the ordinary American taxpayer.
The discovery is part of a larger ProPublica investigation on the tax loopholes that the wealthiest 400 Americans use every year to avoid paying billions in federal income taxes.
According to the investigation, to make it into the top 400, each person had to earn at least $110 million each year on average. Americans earning $40,000 would have to work for 2,750 years to make what the lowest-earning member in this group made in a year.
Taking more than $1 billion in yearly deductions, largely via philanthropic donations, Bloomberg paid an average federal income tax rate of just four percent from 2013 to 2018. That’s less than half the rate that the average American taxpayer, at 13.3 percent, pays every year. Bloomberg’s tax rate is 0.5 percent more than what the bottom 50 percent of income earners pay.
Michael Bloomberg is one of many who benefited from tax breaks passed by former presidents George W. Bush and Donald Trump.
In 2003, Bush’s administration extended the low tax rate on long-term capital gains to include stock dividends. According to ProPublica, this alone saved the richest 400 Americans an average of $1.9 billion each year.
The Trump provision, which was put into the Tax Cuts and Jobs Act at Sen. Ron Johnson’s request, permits owners of so-called “pass-through” businesses to deduct up to 20% of their income. As a result, for every dollar of profit, the owner keeps an extra seven cents.
According to ProPublica, Bloomberg ranked as the world’s 20th wealthiest person by Forbes, received the highest available deduction under the new provision in 2018, cutting his tax burden by about $68 million.
Breitbart News has reported that research consistently shows today’s wealthiest Americans pay a lower overall tax rate than the rest of the country. Meanwhile, the wealth of the American middle class has reached an all-time low.