‘CBS This Morning’ Celebrates ProPublica’s ‘Bombshell,’ ‘Landmark Piece of Reporting’

DOKOUPIL A bombshell report ░░░░░░░░ ProPublica reveals just how ░░░░░░░░ the wealthiest Americans have ░░░░░░░░ paying in taxes ProPublica ░░░░░░░░ more than 15 years ░░░░░░░░ never before seen IRS ░░░░░░░░ about the 25 richest ░░░░░░░░ and found that sometimes ░░░░░░░░ paid little or no ░░░░░░░░ income taxes That includes ░░░░░░░░ Buffett Elon Musk and ░░░░░░░░ Bloomberg Also Jeff Bezos ░░░░░░░░ is now the richest ░░░░░░░░ in America He paid ░░░░░░░░ zero zilch federal income ░░░░░░░░ in 2007 and then ░░░░░░░░ in 2011 We reached ░░░░░░░░ to all of them ░░░░░░░░ have not heard back ░░░░░░░░ and Bloomberg did respond ░░░░░░░░ ProPublica saying that they ░░░░░░░░ an increase in taxes ░░░░░░░░ the wealthy and that ░░░░░░░░ donate much of their ░░░░░░░░ to charity Now we ░░░░░░░░ make clear that none ░░░░░░░░ the things that these ░░░░░░░░ did is illegal which ░░░░░░░░ actually part of the ░░░░░░░░ here And the IRS ░░░░░░░░ it is investigating the ░░░░░░░░ of the leaked documents ░░░░░░░░ to be seen if ░░░░░░░░ will take a look ░░░░░░░░ Eisinger wrote the article ░░░░░░░░ with a colleague and ░░░░░░░░ joins us now to ░░░░░░░░ about it more Jesse ░░░░░░░░ write in the piece ░░░░░░░░ this explodes a cornerstone ░░░░░░░░ of America that idea ░░░░░░░░ we all pay our ░░░░░░░░ share How were these ░░░░░░░░ Americans able to avoid ░░░░░░░░ as basic as a ░░░░░░░░ income tax EISINGER Yeah ░░░░░░░░ for having me Tony ░░░░░░░░ what we wrote about ░░░░░░░░ exactly that that the ░░░░░░░░ wealthy the ultra wealthy ░░░░░░░░ completely out of the ░░░░░░░░ Most of us have ░░░░░░░░ and the taxes get ░░░░░░░░ out of the salaries ░░░░░░░░ are in the American ░░░░░░░░ system But the way ░░░░░░░░ super wealthy work the ░░░░░░░░ Bezoses and the Elon ░░░░░░░░ of the world the ░░░░░░░░ their wealth builds they ░░░░░░░░ outside of the system ░░░░░░░░ their wealth builds up ░░░░░░░░ it s untaxed And ░░░░░░░░ only it s taxed ░░░░░░░░ they sell They choose ░░░░░░░░ to take income Sometimes ░░░░░░░░ don t take income ░░░░░░░░ all They don t ░░░░░░░░ wages And it s ░░░░░░░░ taxed when they sell ░░░░░░░░ they often don t ░░░░░░░░ they borrow to fund ░░░░░░░░ lifestyles DOKOUPIL So for ░░░░░░░░ average Americans sitting at ░░░░░░░░ they get paid on ░░░░░░░░ Friday the federal government ░░░░░░░░ very good about taking ░░░░░░░░ out of that check ░░░░░░░░ not so good it ░░░░░░░░ like EISINGER Exactly DOKOUPIL ░░░░░░░░ money out of the ░░░░░░░░ wealth and assets the ░░░░░░░░ the homes the cars ░░░░░░░░ art the yachts you ░░░░░░░░ it of super wealthy ░░░░░░░░ Is that the basic ░░░░░░░░ of things EISINGER That ░░░░░░░░ the basic picture exactly ░░░░░░░░ Warren Buffett takes very ░░░░░░░░ little income and he ░░░░░░░░ pays ten cents for ░░░░░░░░ 100 that his income ░░░░░░░░ The average American making ░░░░░░░░ 000 or 70 000 ░░░░░░░░ year they pay 14 ░░░░░░░░ So they re paying ░░░░░░░░ of every 100 that ░░░░░░░░ coming in So it ░░░░░░░░ completely different picture for ░░░░░░░░ wealthy The wealthy take ░░░░░░░░ little income even that ░░░░░░░░ is taxed very low ░░░░░░░░ low rates lower than ░░░░░░░░ making 45 000 but ░░░░░░░░ bigger picture here is ░░░░░░░░ the whole world of ░░░░░░░░ wealth what confers their ░░░░░░░░ what they re able ░░░░░░░░ contribute to political campaigns ░░░░░░░░ what enables them to ░░░░░░░░ control of their companies ░░░░░░░░ s untouched by the ░░░░░░░░ system DOKOUPIL So Carl ░░░░░░░░ who s a multibillionaire ░░░░░░░░ s an investor he ░░░░░░░░ to questions from you ░░░░░░░░ at ProPublica and he ░░░░░░░░ look it s called ░░░░░░░░ income tax I may ░░░░░░░░ billions in the bank ░░░░░░░░ through this wealth but ░░░░░░░░ didn t get any ░░░░░░░░ so why should I ░░░░░░░░ taxes What s the ░░░░░░░░ to that EISINGER Yeah ░░░░░░░░ s pretty astonishing admission ░░░░░░░░ enjoyed talking to Carl ░░░░░░░░ that And he s ░░░░░░░░ right We re writing ░░░░░░░░ the system that doesn ░░░░░░░░ tax this kind of ░░░░░░░░ Now take Carl for ░░░░░░░░ he had hundreds of ░░░░░░░░ half a billion dollars ░░░░░░░░ income in 2016 2017 ░░░░░░░░ by the IRS definition ░░░░░░░░ then what happens is ░░░░░░░░ Icahn s business is ░░░░░░░░ personal fortune and his ░░░░░░░░ income taxes his business ░░░░░░░░ taxes it s all ░░░░░░░░ together So he borrows ░░░░░░░░ huge amount of money ░░░░░░░░ invest in companies and ░░░░░░░░ gives him leverage and ░░░░░░░░ his returns And then ░░░░░░░░ pays interest on that ░░░░░░░░ gets to deduct that ░░░░░░░░ so that half a ░░░░░░░░ dollars of income got ░░░░░░░░ out from the interest ░░░░░░░░ In other words you ░░░░░░░░ I and all the ░░░░░░░░ in America are helping ░░░░░░░░ Icahn borrow so that ░░░░░░░░ can have better returns ░░░░░░░░ the stock market DOKOUPIL ░░░░░░░░ You know people should ░░░░░░░░ if you add up ░░░░░░░░ the wealth in America ░░░░░░░░ it one big old ░░░░░░░░ the super wealthy are ░░░░░░░░ most of those pieces ░░░░░░░░ rest of us are ░░░░░░░░ fractions of a slice ░░░░░░░░ the bottom fifth of ░░░░░░░░ society are getting crumbs ░░░░░░░░ actually they have zero ░░░░░░░░ They owe pie They ░░░░░░░░ in debt Jesse Eisinger ░░░░░░░░ Yeah DOKOUPIL this is ░░░░░░░░ landmark piece of reporting ░░░░░░░░ ProPublica it s the ░░░░░░░░ in a series you ░░░░░░░░ are going to be ░░░░░░░░ I look forward to ░░░░░░░░ and every entry Thank ░░░░░░░░ for joining us EISINGER ░░░░░░░░ you for having me.”