Private equity firms have conquered the American tax system.
$4.5 trillion industry has avoided paying billions in taxes
Has managed to derail efforts to increase its tax burden
Have paid lobbyists and made campaign contributions to gain legislation
Firms are rarely audited despite whistle-blowers’ claims of tax dodges.
I.R.S. almost never audits private equity firms, even with whistle-blowers
Private equity’s ability to vanquish the I.R.S. and Congress goes a long way toward explaining the deep inequities in the U.S. tax system.
Meanwhile, a comprehensive survey of the 200 highest-paid chief executives at Publicly traded companies had some of the biggest pay packages on record.
Businesses sent cash to shareholders rather than make long-term investments.
Dozens of America’s biggest businesses paid no federal income tax — again
55 corporations had zero federal tax liability in 2020, including household names like Nike, FedEx and Dish Network, analysis finds
“ Companies appear to be using entirely legal means to reduce tax bills,”. But that doesn’t mean the companies are “blameless,” he added. “Many of the tax provisions these companies are using exist because they themselves have lobbied heavily for their creation.”
— Gardner, the study’s lead author, l
Private Inequity: How a Powerful Industry Conquered the Tax System –