Want to pay less in income taxes? If you're an average American, good luck with that.
There are strategies that average people can use to lower their tax bill, like deducting mortgage interest and contributing to retirement plans.
But some non-average people and corporations can do things we can't.
Example? Hedge fund managers. According to Forbes, the top hedge fund owner in 2013 was George Soros, with an income of $4 billion.
That means if he worked a typical work week, he made about $2 million every working hour.
So what does he pay in taxes? About 20 percent, thanks to a long-standing loophole.
Those of us without that loophole would pay twice as much: 40 percent, twice as much.
Then there are the loopholes reserved for corporations.
One of the biggest? Simply moving money around the globe.
In some cases, American companies shift income to countries with low tax rates.
In other cases, they merge with a foreign company, then pay that country's lower tax rate, even though they're still headquartered right here in the U.S. You and I can't begin to do anything like that.
According to Citizens for Tax Justice, American companies avoided $90 billion in income taxes last year this way.
So how do they get away with it? For the most part, with perfectly legal loopholes. But ones you and I can't use. Is it fair? You tell me.
Learn more about how the system works, then voice your opinion. Go to moneytalksnews.com and do a search for "Corporate Taxes."
For Money Talks News, I'm Stacy Johnson.