The Second Estate: How the Tax Code Made an American Aristocracy

The Second Estate

By Ray D. Madoff. Lifts the curtain on America’s most consequential public deception: how the rich get richer using tools the government gave them. Offers a look behind the scenes of America’s byzantine system of taxation, laying bare not only its capacity to consolidate wealth but also the mechanisms by which it has created two fundamentally separate American societies: the working Americans who pay and the ultra-rich who benefit. Shows that the US system itself has, over time, been stripped and reconstituted such that it now offers a series of secret paths, hidden in plain sight, for wealthy people in the know to avoid taxation altogether. Through the strategic avoidance of traditional income, leveraging of investments and debt, and exploitation of rules designed to promote charitable giving, America’s wealthy do more than just pay less than their share; they remove themselves from the tax system entirely. Wealth becomes its own sovereign state, and the living is surprisingly―and maddeningly―cheap. Read more.