tax write offs for small business owners 2016

'A critical tax advantage for wealthy households is that much of their income doesn’t appear on their annual tax returns because the tax code doesn’t consider it “taxable income.”'A critical tax advantage for wealthy households is that much of their income doesn’t appear on their annual tax returns because the tax code doesn’t consider it “taxable income.” For example, taxes on capital gains (the increase in the value of assets such as stocks, real estate, or other investments) are effectively voluntary to a substantial extent: high-wealth filers may accumulate capital gains every year as their investments appreciate, but they don’t owe tax on those gains until - or unless - they “realize” the gain, usually by selling the appreciated asset.

It also would raise significant revenue that could be used to fund key priorities and help address the nation’s fiscal challenges.

Eliminating or limiting these preferences would make the tax code more progressive and push back against inequality.

High-income, and especially high-wealth, filers enjoy a number of generous tax benefits that can dramatically lower their tax bills.

With the nation’s income and wealth highly concentrated at the top and growing more so in recent decades, policymakers should reconsider how the tax code treats the most well-off.

Tax write offs for small business owners 2016