Effects of capitalism Some say that capitalism is designed to make the rich richer and the poor poorer In that case you have to work hard and become rich! Then you can relax a bit and just maintain...

Effects of capitalism

Some say that capitalism is designed to make the rich richer

and the poor poorer

In that case you have to work hard and become rich! Then you

can relax a bit and just maintain

Our tax system is supposed to be progressive (the higher the

income the higher portion of it goes to the IRS)

However, in the US the top 5 percent of the population

pays about 11% effective tax rate while the middle class pays about 18% Large

corporations get to avoid paying taxes using complicated tax strategies They

hire sophisticated tax advisors who know the 15K plus pages tax code better

than the IRS

Enron increased profits from 96 to 99 for annual report

purposes, but paid no taxes to the IRS during those years IRS officials could

not fight the Enron tax advisors

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