How the super-rich in America avoid taxes | Economy 24h

US Federal Reserve Policy
📌 The US Federal Reserve (FED) decided to raise interest rates by 0.5 percentage points, the highest in two decades, as part of an effort to reduce its record-high asset size while aiming to avoid an economic recession.
📉 This marks the second interest rate hike after two consecutive years of near-zero rates implemented to support the economy during the pandemic.
📈 The current base interest rate is now between 0.75% and 1.0%, set against the backdrop of US inflation hitting a 40-year high of 8.5% in March.

Chinese Companies Facing US Delisting Risk
📰 The US Securities and Exchange Commission (SEC) added over 80 Chinese companies, including giants like JD.com and Pinduoduo, to a list of firms potentially facing delisting from US stock exchanges.
🚫 The primary reason is China's refusal to allow US auditors access to the companies' books.
📜 A 2020 law mandates that foreign-controlled companies listed in the US must prove they are not subject to foreign government control, or risk delisting if audits cannot be verified for three consecutive years.

Global Aviation Recovery
✈️ The International Air Transport Association (IATA) reported that air passenger traffic continued to recover in March, with the total volume transported reaching 76% compared to the same period last year.
🌍 Domestic passenger traffic saw a 11.7% year-over-year increase in March, although this remains lower than the 59.4% growth seen in February.
🌏 Asia-Pacific airlines experienced a substantial recovery, with passenger traffic increasing by 197.1% year-over-year.

China's Service Sector Slowdown
📉 China's service sector activity declined in April to its second-lowest level in history, signaling a slowdown for the world's second-largest economy following COVID-19 restrictions.
📊 The Purchasing Managers' Index (PMI) for the service sector, released by Caixin, stood at 36.2 in April, significantly missing analyst expectations.
📉 This marks the worst reading since February 2020 and indicates contraction for the second consecutive month (below the 50-point threshold).

Tax Avoidance by US Billionaires and Corporations
💸 At least 55 of America's largest corporations paid zero federal corporate income tax in 2020, including companies like Meta, Nike, and HP, resulting in an estimated loss of $12 billion to the US budget (they received a $3.5 billion tax refund instead of paying an estimated $8.5 billion).
💰 Investigations found that the 25 wealthiest Americans saw their combined wealth increase by $401 billion between 2014 and 2018, yet they only paid $13.6 billion in taxes during that period.
🏦 Billionaires often hold assets primarily as stocks, which are not taxed as income until sold; even then, capital gains taxes are lower than income tax rates on wages.
💵 Many CEOs, including those from Apple, Facebook, Oracle, and Google, accept symbolic salaries of $1 to avoid high income tax rates, receiving the majority of their compensation through stock options and equity, which are taxed at lower rates or deferred.

Tax Loopholes and Wealth Inequality
💵 A key strategy for the super-rich is borrowing heavily against their assets, as loan repayments are not considered taxable income by the IRS, allowing access to billions without incurring income tax.
⚖️ For example, Michael Bloomberg reported an income of $1.9 billion in 2018 but only paid $70.7 million (or 3.7%) in taxes by leveraging deductions, charitable donations ($968 million), and foreign tax credits from the Trump administration's tax cuts.
🏛️ This disparity reveals significant wealth inequality, with experts noting that people in poorer areas of the US are audited more frequently than those in wealthy regions.
📈 President Biden and Congress are currently considering the most ambitious tax increases in decades targeting high-income earners to address this imbalance.

Key Points & Insights
➡️ The Federal Reserve raised interest rates by 0.5% to combat inflation, bringing the rate to 0.75%-1.0%.
➡️ Chinese tech giants like JD.com are at risk of US stock market delisting due to refusal to grant access to auditors.
➡️ US corporations and billionaires exploit loopholes, such as $1 CEO salaries and borrowing against assets, to pay significantly lower effective tax rates than middle-class families.
➡️ Efforts are underway by the Biden administration to implement sweeping tax increases for high-income earners to mitigate wealth inequality exposed by tax avoidance patterns.

📸 Video summarized with SummaryTube.com on Mar 06, 2026, 10:53 UTC