Let’s start with a couple of stories on one of my favorite subjects - taxes (nerd alert).
First, corporate taxes (bold emphasis mine):
More than 100 of the largest and most profitable U.S. companies paid no federal income tax in 2025, including corporate heavyweights Citigroup, Tesla, and Walt Disney, according to a new report.
The analysis found that more than 700 large, profitable public companies paid federal tax at an overall rate of 10.4% in 2025, and that 114 of those firms paid no tax at all. That's the lowest effective tax rate reported by the Institute on Taxation and Economic Policy in more than 40 years of studying corporate tax rates. ITEP is a nonpartisan, left-leaning think tank.
Tax laws enacted under President Donald Trump cut the federal corporate tax rate from 35% to 21%. Trump and Congress also extended or expanded tax breaks that allowed many companies to pay tax at an even lower rate than 21% in 2025.
…
The 114 companies that paid no federal income tax in 2025 include some big names, according to ITEP:
Citigroup, with $4.4 billion in profits in 2025.
CVS Health, with $8 billion in profits.
Duke Energy, with $5.5 billion in profits.
Tesla, with $5.7 billion in profits.
United Airlines, with $4.3 billion in profits.
Walt Disney, with $8.3 billion in profits.
…
"In a fiscally challenging environment, when the federal government is unable to balance its budget, every dime of taxes we’re not collecting is a problem," said Matt Gardner, a senior fellow at ITEP. "And this report documents $198 billion worth of problems in 2025."
That is the total value of corporate tax subsidies taken by the 706 companies ITEP studied in 2025, pushing their effective tax rate below the benchmark rate of 21%, the report says.
Trick or treat? Definitely a trick.
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Billionaires Don’t Like the Wealth Tax. Here’s What Some Propose Instead.
What several prominent billionaires think could help fix the tax system.
Billionaires across the political spectrum have come out in opposition to Prop. 40. They argue the tax will cause the ultrawealthy and entrepreneurs to flee the state, eroding California’s long-term income-tax base and the state’s competitiveness. Some prefer to focus instead on rooting out wasteful government spending or on improving the lot of the less well-off.
But even some billionaires who are skeptical of wealth taxes support elements of progressive changes to the tax code.
Some of those ideas?
From John Arnold:
“…have the tax rates on long-term capital gains and ordinary income, which is taxed at higher rates, match.” Actually, not a bad idea. Please continue…
“…higher rates should apply to higher levels of income, regardless of the type of income.” John is killing it. More please…
“…also count gains as realized when they are transferred as a gift or at death, in addition to when they are sold, eliminating various loopholes that some tax scholars say contribute to growing wealth inequality.” Holy moly John. If you’re talking about eliminating stepped up basis, you’re my man! Definitely a treat.
Moving on to Mark Cuban:
“…have employees be given stock at the same pro rata share that a company’s CEO gets his compensation in, saying stock-market participation is a sure way to increase wealth.” sounds good , but won’t really do much to reduce inequality. He’s tricking us.
How about that man of the people, Jeff Bezos?
Bezos “…advocated for eliminating federal income tax for the bottom half of workers—or those with a maximum adjusted gross income of $53,801, according to the right-leaning Tax Foundation’s analysis of 2023 IRS data. (Many people in the bottom half don’t pay income tax.) While there could be a debate about whether he should pay more in taxes, Bezos said, vilifying the ultrawealthy and upping their taxes wouldn’t be enough to help those in need.” Standard billionaire out-of-touch speak. Yeah - I didn’t expect a treat from him either.
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If Democrats are truly on the verge of a blue wave that looks like it might bring them a majority in both the House and the Senate, they will need to take quick action to show voters they were worthy of their support. That means action on the Iran War, holding Trump Admin people accountable legally (and criminally where necessary), rooting out corruption, reforming SCOTUS, “reforming” DHS/ICE (and reforming might mean burning it to the ground and starting over), bringing down the cost of living wherever possible, and reducing inequality. And that’s just a start.
Yes, it’s a lot. And let’s remember, Trump still has veto power, so passing any legislation will be extremely difficult, if not impossible. Nonetheless, putting forth legislation and making Trump and Republicans defend the indefensible has to be a prt of Democrats plan.
I can’t think of a better place to start than a comprehensive package of reforms to the tax code that show us “normies” and working-class people that Democrats are serious about helping them out and reducing inequality.
I wrote about this in detail in a previous post some time ago:
As a reminder, here’s a good package (to start):
Get rid of the Carried Interest Rule for hedge fund and private equity parasites. In layman’s terms, make them pay the ordinary income same tax rates as regular working people instead of enjoying capital gains tax rates on risking only OPM - Other People’s Money. There is literally no economic reason for this - it only exists because rich people have influence over the elected officials who write the tax laws.
Get rid of “Stepped-Up Basis” for stock passed on to heirs. In layman’s terms, when a person dies and passes stockholdings to their heirs, make the heirs pay the capital gains tax on the increase in the stock price from when it was purchased to when it is passed on. Why? Becuase this is passive income to the heirs. Currently, and insanely, no one ever pays tax on the stock’s increase in value when it is transferred. Ever. This is just a means of ensuring heirs who were lucky enough to be born to the wealthy can enjoy dynastic wealth without lifting a finger. Again, there is literally no economic reason for this - it only exists because rich people have influence over the elected officials who write the tax laws. BTW, there is already a significant annual gift tax exemption wealthy people can use while they are alive to transfer money to heirs.
Re-institute a micro transaction tax on trades of financial instruments. We used to have a Financial Transactions Tax (FTT, or “documentary stamp tax) from 1914 - 1965. Some estimates are we can raise $220 billion/year with an exceedingly small tax of 0.5% on stocks, 0.1% on bonds, and 0.005% on derivatives. Yep - $220 billion per year. While somewhat more than half of Americans indirectly own stocks through company retirement accounts estimates are that no more than 15% of Americans directly own stocks/financial instruments. A nice side benny of this proposal is the likely reduction in stock speculation.
Increase the estate tax and make it stick. This is really an inheritance tax on lucky heirs. Much like “Stepped-Up Basis”, passing on ones accumulated wealth to heirs is simply passive income to those heirs based solely on the circumstances of their birth. Teddy Roosevelt argued for the inheritance tax in order to avoid the inter-generational landed aristocracy that led to gross economic/power inequality in Old Europe. Yes - allow some reasonable transfer of wealth and exempt true small businesses, real working ranch and farm lands. Find a way to include trusts so the wealthy can’t evade the tax so easily. Michael Green has a way too dense analysis HERE, but the gist is that taxing wealth after accumulation and redistributing is the best way to reduce inequality (trust me - tl:dr).
Institute a wealth tax. Yes, this one is controversial. The wealthy argue their wealth held in stocks may decrease over time. But let’s be clear - we already have a wealth tax on every single homeowner in this country. It’s called the property tax. And no one gets a refund for past property taxes paid if the value of their house goes down in the future. So why not have a similar “property tax” for personal “property” (i.e., assets) the super wealthy possess?
Replace funding for the IRS that was removed by Trump and his lackeys in Congress. You see, regular folks - wage/salary earners - have federal taxes automatically withheld and paid to the IRS by employers, regardless of the IRS’ funding levels or ability to make collection efforts. The people who benefit from an IRS without the finding/staffing to go after tax cheats and avoiders are non-wage earners - the wealthy investor class. And the less the wealthy pay what they owe, the more the rest of us have to pay in higher tax rates and increased interest on the national debt to make up for wealthy people keeping money that actually - by law - belongs to all of us.
Let’s not let the Epstein Billionaire Class decide for us what changes should be made to the tax code so they can throw the rest of us a bone or two while continuing to siphon wealth upwards to themselves.
That’s how we got here in the first place.
It looks like elected Democrat will finally have an opportunity to show the vast majority of Americans they get it.
A comprehensive “Reducing Gross Inequality Act” would be a good start. Let’s hope they don’t blow it.
The Beatles - Taxman
