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IRS Systems Block Wealth Analysis, Forbes and Fed Say

By Drooid · Sep 15, 2026, 3:36 AM UTC · How we work

Summary

Researchers Merge Tax Records

Authors merged anonymized tax records to map American enterprise and owner wealth.
U.S. Forbes editors and Treasury analysts say richest Americans’ wealth remains hidden.
Federal Reserve Survey of Consumer Finances samples only a few hundred ultrarich, with one in ten cooperating.
IRS data on businesses and owners resides in separate systems, hindering basic wealth analysis.

Summary

Dealers Secure Exemption

The Medicare-tax loophole lets private-business owners completely avoid payroll taxes.
Estate-tax exemptions now permit married couples to transfer up to $30 million tax-free.
An auto dealer-turned-congressman warned the 2017 tax bill would cripple his industry.
Dealers, heavily leveraged for inventory, received a special exemption from the bill’s interest-deduction limit.
Pass-through businesses channel profits to owners, avoiding corporate tax and often paying lower individual rates.

History

Historical Context

In October 1986 President Ronald Reagan signed the Tax Reform Act, cutting the top rate from 50% to 28% and indexing brackets for inflation in 1985. The law raised the estate-tax exemption to $600,000 by 1987, expanding deductions and pass-through benefits. Those changes drive today’s Treasury and IRS push to merge records and close loopholes.

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Researchers Merge Tax Records

Authors merged anonymized tax records to map American enterprise and owner wealth.
U.S. Forbes editors and Treasury analysts say richest Americans’ wealth remains hidden.
Federal Reserve Survey of Consumer Finances samples only a few hundred ultrarich, with one in ten cooperating.
IRS data on businesses and owners resides in separate systems, hindering basic wealth analysis.

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