The Trump administration is actively undermining the Corporate Alternative Minimum Tax (CAMT), a Biden-era measure designed to ensure large, profitable companies pay at least 15% in taxes on their reported profits. This move involves issuing regulatory guidance and proposals that create loopholes, effectively providing hundreds of billions of dollars in tax breaks for businesses and investors. Critics, including members of Congress, have raised concerns that the administration is exceeding its legal authority and allowing corporations to avoid their tax obligations. Specifically, a recent notice increased the safe harbor threshold, potentially exempting companies that should be subject to the CAMT.
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Two primary strategies, “buy-borrow-die” and “buy-hold for decades-sell,” allow the wealthy to avoid paying taxes on investment gains, either entirely or at drastically reduced rates. The “buy-borrow-die” strategy utilizes loans against appreciated assets to avoid income tax until death, while “buy-hold for decades-sell” minimizes the effective tax rate on long-term investments through decades of untaxed compounding. While arguments exist that the wealthy lack the means to pay taxes before selling assets, this is demonstrably false; solutions such as deferring tax payments until sale, with appropriate adjustments for compounding, are readily available. The persistence of these loopholes ultimately stems from political inaction rather than genuine financial constraints.
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US Senate Democrats are demanding that Dr. Mehmet Oz, President Trump’s nominee for a position overseeing Medicare, pay an estimated $400,000 in allegedly avoided taxes. This call for payment highlights a concerning pattern of tax avoidance among high-profile individuals, raising serious questions about accountability and fairness.
The situation underscores a double standard in the tax system. While ordinary citizens face stringent penalties for even minor tax discrepancies, individuals with substantial wealth and influence often appear to evade significant tax liabilities without facing comparable consequences. This discrepancy fuels public distrust and raises serious questions about the equity of the tax system.
The substantial amount of unpaid taxes, allegedly $400,000, is not insignificant.… Continue reading
In 2024, Tesla reported $2.3 billion in U.S. income but paid zero federal income tax, a trend reflecting a three-year total of $10.8 billion in U.S. income taxed at only 0.4%. This remarkably low tax rate resulted from utilizing various tax strategies, including accelerated depreciation, stock option tax breaks, and unspecified U.S. tax credits. Furthermore, the company leveraged net operating losses to offset income, and potential future tax savings are looming with proposed legislation that could provide additional substantial benefits.
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John Q. Hosedrinker 
Matt Underwood