1) Perhaps you missed the part where I said IRS only applies to US? Tax rates do differ in different countries, if you weren't aware. That's one of the major tax avoidance methods - do what you can offshore, wherever you benefit by paying less.
If you live in the US and you make money, you owe US taxes on the money, regardless of where the company is.
2) Again, depends where you are. While all bonuses may not be tax free, they are usually taxed differently to income tax anyway - such that less tax is paid. Why do you think people pay bonuses rather than just increasing salaries?
As others have pointed out, bonuses in the US are taxed as ordinary income, and they're taxed at the same rate or higher (!) than ordinary income in the EU. Take a quick Google trip through a search of "banker tax EU" to come up with some real doom and gloom there.
3) I wasn't claiming otherwise - my claim is that the rich don't aren't paying more as a proportion of their total earnings, which is what is claimed to be the case by the system.
This is simple. Rich people have more long-term capital gains and less ordinary income. It is 100% not because of bonuses.
If you live in the US and you make money, you owe US taxes on the money, regardless of where the company is.
2) Again, depends where you are. While all bonuses may not be tax free, they are usually taxed differently to income tax anyway - such that less tax is paid. Why do you think people pay bonuses rather than just increasing salaries?
As others have pointed out, bonuses in the US are taxed as ordinary income, and they're taxed at the same rate or higher (!) than ordinary income in the EU. Take a quick Google trip through a search of "banker tax EU" to come up with some real doom and gloom there.
3) I wasn't claiming otherwise - my claim is that the rich don't aren't paying more as a proportion of their total earnings, which is what is claimed to be the case by the system.
This is simple. Rich people have more long-term capital gains and less ordinary income. It is 100% not because of bonuses.