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Post by Dutch on Apr 15, 2024 18:28:48 GMT -5
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Post by davet on Apr 16, 2024 6:38:32 GMT -5
Reminds me of a former client and now a good friend of mine. He struck out to become self employed and at the beginning he said (and he still tells this story) "I want to be the guy that has to pay that much in tax". He knew if he was paying a big chunk of tax that he would be making a big chunk of money.
About 7 years later he was paying a very large chunk of money in income tax. And he said to me...."Remember when I said...... Well, now that I'm here I have to tell you I'm glad I'm doing this well.....but man it hurts to cut a check this big"
He's doing fine today is is a true self made millionaire.
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Post by rusty on Apr 17, 2024 10:13:37 GMT -5
According to a 2021 White House study, the wealthiest 400 billionaire families in the U.S. paid an average federal individual tax rate of just 8.2 percent. For comparison, the average American taxpayer in the same year paid 13 percent.
According to leaked tax returns highlighted in a ProPublica investigation, the 25 richest Americans paid $13.6 billion in taxes from 2014-2018—a “true” tax rate of just 3.4 percent on $401 billion of income.
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Post by Dutch on Apr 17, 2024 10:37:33 GMT -5
According to a 2021 White House study, the wealthiest 400 billionaire families in the U.S. paid an average federal individual tax rate of just 8.2 percent. For comparison, the average American taxpayer in the same year paid 13 percent. According to leaked tax returns highlighted in a ProPublica investigation, the 25 richest Americans paid $13.6 billion in taxes from 2014-2018—a “true” tax rate of just 3.4 percent on $401 billion of income. Yeah, years ago Warren Buffett said that his secretary paid a higher tax rate than he did,on his billions earned Many of my dividends are "qualified", and no tax is owed. I'm making more than I ever did in my life, but owed no federal income tax this year. |
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Post by rusty on Apr 17, 2024 10:43:38 GMT -5
Tell us more about the "Qualified Divs". Are they in some kind of municipal bonds?
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Post by dougl on Apr 17, 2024 11:58:23 GMT -5
Warren Buffet has most likely paid in millions over the years.His secretary was also probably in a high tax bracket.I was in the highest tax bracket for about 5-6 years and it blows.
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Post by Dutch on Apr 17, 2024 12:05:55 GMT -5
Tell us more about the "Qualified Divs". Are they in some kind of municipal bonds? My mistake, dividends in my pipeline companies are a return of capital, and not taxed. They are in my taxable account, so, I don't pay tax on those. As a return of capital, it reduces my tax basis, so if or when I sell, I'll owe cap gains taxes on more of my investment. As cap gain taxes were reduced or eliminated, depending on income, I may or may not even pay cap gains taxes in the future. It does somewhat complicate tax returns,but my CPA has no issues. These Limited Partnerships issue K-1s, not 1099s |
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Post by rusty on Apr 17, 2024 12:14:14 GMT -5
I keep most of my high dividend stocks in my roth to lessen the taxes paid. I have been taking money from my traditional IRA, paying the taxes on the money and putting it in my ROTH too so that gains or divs are not taxed again. I waited to start doing that until after I was 59 1/2 yrs old to avoid the early withdrawal penalty.
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Post by davet on Apr 17, 2024 12:52:32 GMT -5
Qualified dividends are taxed at long term capital gain rates. Non-qualified are taxed at ordinary rates.
Because a person is a billionaire does not mean they make a billion dollars a year. It simply means their net worth is 1billion or more.
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Post by davet on Apr 17, 2024 12:55:13 GMT -5
Once you reach age 70.5, you can make a direct contribution from your IRA to a qualifying charity and the distribution is not taxed. (Up to $100,000)
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Post by Dutch on Apr 17, 2024 13:15:38 GMT -5
Warren Buffet has most likely paid in millions over the years.His secretary was also probably in a high tax bracket.I was in the highest tax bracket for about 5-6 years and it blows. Her effective tax rate was around 12% |
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Post by davet on Apr 17, 2024 13:52:36 GMT -5
When I first started in the late 70’s the maximum rate was 80%. At that time there was a “Maximum Tax on Personal Service Income” of 50%. Personal service income was w-2 or self employment income.
Think of receiving $10,000 of dividend income and then giving Uncle Sam $8,000 of it.
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Post by dougl on Apr 17, 2024 15:57:27 GMT -5
Warren Buffet has most likely paid in millions over the years.His secretary was also probably in a high tax bracket.I was in the highest tax bracket for about 5-6 years and it blows. Her effective tax rate was around 12% I find it hard to believe that he paid her a poverty wage. |
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Post by bake545 on Apr 17, 2024 16:43:45 GMT -5
According to a 2021 White House study, the wealthiest 400 billionaire families in the U.S. paid an average federal individual tax rate of just 8.2 percent. For comparison, the average American taxpayer in the same year paid 13 percent. According to leaked tax returns highlighted in a ProPublica investigation, the 25 richest Americans paid $13.6 billion in taxes from 2014-2018—a “true” tax rate of just 3.4 percent on $401 billion of income. You do realize this study was load of hot garbage, right? An income tax rate is your tax rate divided by your income, pretty simple, right? But what they did for the rich people was add in their wealth which made the denominator a much bigger number and made their tax rates much smaller. It was comparing apples to oranges. Everyone's tax rate would be a lot lower if you added their assets with their income. I can't believe anyone still sites this "study". The rich pay most of the taxes in this country. Probably close to half pay little to nothing but eat this kind of garbage up. |
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Post by davet on Apr 17, 2024 16:46:07 GMT -5
According to a 2021 White House study, the wealthiest 400 billionaire families in the U.S. paid an average federal individual tax rate of just 8.2 percent. For comparison, the average American taxpayer in the same year paid 13 percent. According to leaked tax returns highlighted in a ProPublica investigation, the 25 richest Americans paid $13.6 billion in taxes from 2014-2018—a “true” tax rate of just 3.4 percent on $401 billion of income. You do realize this study was load of hot garbage, right? An income tax rate is your tax rate divided by your income, pretty simple, right? But what they did for the rich people was add in their wealth which made the denominator a much bigger number and made their tax rates much smaller. It was comparing apples to oranges. Everyone's tax rate would be a lot lower if you added their assets with their income. I can't believe anyone still sites this "study". The rich pay most of the taxes in this country. Probably close to half pay little to nothing but eat this kind of garbage up. Of course. It all depends upon who is stating the narrative. |
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Post by bushmaster on Apr 17, 2024 16:47:43 GMT -5
Good to hear! I'm over taxed as well.
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Post by davet on Apr 17, 2024 16:49:12 GMT -5
...—a “true” tax rate of just 3.4 percent on $401 billion of income. Well, did it say "Income" or "Gross Income" or "Adjusted Gross Income" or "Taxable Income". Again, it all depends upon who is touting the narrative and what point they are trying to make. "Income" can be calculated in a thousand different ways....but was their method disclosed? |
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Post by stroupy on Apr 18, 2024 3:23:15 GMT -5
Good job guys you and your draconian covid measures you supported and now get off without any consequences made the top 1% in this country a lot richer and middle America poorer. Well done!
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Post by davet on Apr 18, 2024 4:31:01 GMT -5
How we ever got COVID woven into a tax rate discussion is beyond me.
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Post by stroupy on Apr 18, 2024 5:46:40 GMT -5
How we ever got COVID woven into a tax rate discussion is beyond me. Easy Your covid measures made the wealthy richer and tax obligations go off of, yep you guessed it wealth. |
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Post by davet on Apr 18, 2024 7:15:26 GMT -5
How we ever got COVID woven into a tax rate discussion is beyond me. Easy Your covid measures made the wealthy richer and tax obligations go off of, yep you guessed it wealth. I never had these COVID measures you speak of. So I have no idea what you’re saying. |
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Post by rusty on Apr 18, 2024 13:07:56 GMT -5
According to a 2021 White House study, the wealthiest 400 billionaire families in the U.S. paid an average federal individual tax rate of just 8.2 percent. For comparison, the average American taxpayer in the same year paid 13 percent. According to leaked tax returns highlighted in a ProPublica investigation, the 25 richest Americans paid $13.6 billion in taxes from 2014-2018—a “true” tax rate of just 3.4 percent on $401 billion of income. You do realize this study was load of hot garbage, right? An income tax rate is your tax rate divided by your income, pretty simple, right? But what they did for the rich people was add in their wealth which made the denominator a much bigger number and made their tax rates much smaller. It was comparing apples to oranges. Everyone's tax rate would be a lot lower if you added their assets with their income. I can't believe anyone still sites this "study". The rich pay most of the taxes in this country. Probably close to half pay little to nothing but eat this kind of garbage up. Why would that surprise anyone capable of reasoning when the facts are, In the third quarter of 2023, 66.9 percent of the total wealth in the United States was owned by the top 10 percent of earners. In comparison, the lowest 50 percent of earners only owned 2.5 percent of the total wealth? Apr 11, 2024(Wealth distribution Statista.com)I pay more in taxes than my wife does because I make more than she does. My son pays more taxes than I ever did because he earns much more than I did. His fiancé pays more than he does because she makes much more than he does... I somebody whines because they pay more than I do, they can always take a job that pays what I bring in and pay tax on. If most of one's wealth is held in unrealized capital gains, he can let it ride the market, barrow against it and pay interest at a lower rate than he would pay in taxes while the Unrealized gains continue to grow. ● Some years billionaires pay no federal income taxes: Jeff Bezos paid zero in 2007 and 2011, Elon
Musk paid zero in 2018, Michael Bloomberg paid zero several times in “recent years”, and
George Soros paid zero three years in a row.
● The 25 top billionaires covered in ProPublica’s analysis saw their wealth rise by $401 billion from
2014 to 2018, yet they paid a federal income tax rate of just 3.4%. That’s far less than what most
middle-class workers like teachers, nurses and firefighters pay.
● ProPublica bases that tax rate on how much each billionaire paid in federal income taxes during
that period compared with how much their wealth grew. Because the wealthy make most of
their money from the rise in the value of their assets, ProPublica calls the share of that increase
paid in taxes the rich person’s “true tax rate”.
● In 2018, these 25 billionaires reported a combined $158 million to the IRS in wages, a mere 1.1%
of their total reported incomes for that year.
Americans for tax fairness |
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Post by davet on Apr 18, 2024 15:17:05 GMT -5
You do realize this study was load of hot garbage, right? An income tax rate is your tax rate divided by your income, pretty simple, right? But what they did for the rich people was add in their wealth which made the denominator a much bigger number and made their tax rates much smaller. It was comparing apples to oranges. Everyone's tax rate would be a lot lower if you added their assets with their income. I can't believe anyone still sites this "study". The rich pay most of the taxes in this country. Probably close to half pay little to nothing but eat this kind of garbage up. Why would that surprise anyone capable of reasoning when the facts are, In the third quarter of 2023, 66.9 percent of the total wealth in the United States was owned by the top 10 percent of earners. In comparison, the lowest 50 percent of earners only owned 2.5 percent of the total wealth? Apr 11, 2024(Wealth distribution Statista.com)I pay more in taxes than my wife does because I make more than she does. My son pays more taxes than I ever did because he earns much more than I did. His fiancé pays more than he does because she makes much more than he does... I somebody whines because they pay more than I do, they can always take a job that pays what I bring in and pay tax on. If most of one's wealth is held in unrealized capital gains, he can let it ride the market, barrow against it and pay interest at a lower rate than he would pay in taxes while the Unrealized gains continue to grow. ● Some years billionaires pay no federal income taxes: Jeff Bezos paid zero in 2007 and 2011, Elon
Musk paid zero in 2018, Michael Bloomberg paid zero several times in “recent years”, and
George Soros paid zero three years in a row.
● The 25 top billionaires covered in ProPublica’s analysis saw their wealth rise by $401 billion from
2014 to 2018, yet they paid a federal income tax rate of just 3.4%. That’s far less than what most
middle-class workers like teachers, nurses and firefighters pay.
● ProPublica bases that tax rate on how much each billionaire paid in federal income taxes during
that period compared with how much their wealth grew. Because the wealthy make most of
their money from the rise in the value of their assets, ProPublica calls the share of that increase
paid in taxes the rich person’s “true tax rate”.
● In 2018, these 25 billionaires reported a combined $158 million to the IRS in wages, a mere 1.1%
of their total reported incomes for that year.
Americans for tax fairnessI would not be surprised if there were years where Bezos and Musk did not pay any Federal Income taxes. Likely a year they lost money in their initial start up of business ventures. That's how the system works. Make money....pay tax. Lose money, don't pay tax. |
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