Clip of the Week: Economics of Tax Avoidance

The Republican Party hurtles closer towards their goal of passing a new tax bill, which is essentially a reverse-Robin Hood: robbing the poor to give to the rich. There is a seemingly endless number of ways this plan will be detrimental to the average American-- from students and educational services, to those that have significant health care demands, to women, to parents, small businesses, to basic infrastructure updates and more-- what is being sold by the White House as being a "relief" to the middle class that will spark our economy is nothing more than a cash grab for the wealthy and corporations who will pay fewer taxes. Those of us who survived the trick-down economy of the 1980s should remember that funneling more money to the rich, in hopes that they'll reinvest their money back into the economy, workers and their communities, does little to help the people at the bottom of the socioeconomical hierarchy who will likely see tax increases, while the wealthiest will continue to horde resources. Economists and scholars predict the passage of this bill will lead to an even wider gulf of income inequality.

 

In this Clip of the Week, Richard Wolff of Economic Update explores the economics of tax avoidance, touching on individuals, corporations, sports teams, wealthy institutes of higher education like Princeton and Yale, and more, and how loopholes allow the rich to embrace significant tax breaks or avoid taxes altogether. This hording of wealth ultimately hurts middle- and working-class populations as taxes are meant to provide social services that benefit entire communities, not cushion a select few. Watch the whole episode now.