Tax the Rich!: How Lies, Loopholes, and Lobbyists Made the Rich Even Richer and What to Do About It

The leaders of the Patriotic Millionaires, an organization of Americans with assets of more than $5 million who advocate against wealth disparity, present an accessible guide to the inequities of the American tax system. Pearl (How to Think Like a Patriotic Millionaire), the former managing director of BlackRock, and political strategist Payne (The Practical Progressive!) explain economic concepts like “marginal utility” (the difference in effect that a sum of money can have based on a person’s level of need) and analyze loopholes that allow people to avoid paying taxes on long-term investments and inherited wealth. Elsewhere, Pearl and Payne explain how corporations funnel profits through foreign tax havens and reduce their tax burdens by paying executives in stock options. The authors include useful graphs to explain complex financial matters and lighten the mood with tax-related political cartoons. Their suggestions for reform include equalizing the capital gains tax rate and the income tax rate, creating dozens of new tax brackets with increasing rates at the top end of the income scale, and instituting a wealth tax on “the absolute richest Americans.” Unfortunately, the only advice for achieving these reforms is to vote out legislators who support unfair tax policies. Nevertheless, this is an illuminating insider’s view of how the wealthy exploit the U.S. tax code. (Apr.)