One implication of these revelations is that Trump supporters who imagine that they’ve found a straight-talking champion who will drain the swamp while using his business acumen to make America great again have been suckered, bigly.
Matching information from the Panama Papers and other leaks with national tax data, these researchers found that outright tax evasion actually is a big deal at the top. The truly wealthy end up paying a much lower effective tax rate than the merely rich, not because of loopholes in tax law, but because they break the law. The wealthiest taxpayers, the researchers found, pay on average 25 percent less than they owe — and, of course, many individuals pay even less.
This is a big number. If America’s wealthy evade taxes on the same scale (which they almost surely do), they’re probably costing the government
around as much as the food stamp program does. And they’re also using tax evasion to entrench their privilege and pass it on to their heirs, which is the real Trump story.
The obvious question is, what are our elected representatives doing about this epidemic of cheating? Well, Republicans in Congress have been
on the case for years: They’ve been systematically defunding the Internal Revenue Service, crippling its ability to investigate tax fraud. We don’t just have government by tax cheats; we have government of tax cheats, for tax cheats.