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I strongly doubt that your parent paid 22%, unless they had really poor tax advise. The method used to show Mitt Romney paying only 14% took his taxes and divided them by his entire income. Assuming that your parents only took the standard deduction (no house, no kids, no retirement savings, no education savings or student loans, no charity gifts) they would have paid around $17,500 in taxes or 15%. Mitt Romney also gave a HUGE amount to charity, that is what dropped his rate down to 14% not some special tax write-offs. He used the exact same write-off that you, me and your parents can use.
Somehow, I have a tough time seeing Mitt Romney sitting there in front of his computer, plugging info into Turbo Tax. Most people that have wealth of that magnitude have accountants, lawyers, and financial advisers at their disposal.
As for how they got that way? Sure, some of it may have to do with hard work and ingenuity, but let's not negate the fact that a lot of the people that comprise the super-rich have had the benefits of family upbringing, connections, and timing on their side. Despite what people say about Robert Kiyosaki, I like reading his "Rich Dad, Poor Dad" books and what he has to say about passive income.
The inspiration for this thread started because I was curious on how Mitt Romney became so wealthy, so I looked it up and ran across this video on how private equities work (Bain Capital). From what I understand, a lot of his income is "investment income" and it came from capital gains. Since he had a lot of investment income, he could use the corporate tax write-offs, which is why he paid 14%. Compared to people like my parents who made $115k, and paid 22%.
So, if I'm understanding this correctly, is this how the 1% became so rich?
Not really. Access to global markets and a very large and growing world wide middle class is how the 1% are getting so fabulously wealthy.
The 1% became the 1% by not trying to figure out why others have more than they do.
Now, go look up how Al Gore became wealthy, how the Clintons became wealthy and come on back and report your conclusions.
How did Bill Gates become wealthy? Obviously your post was designed to elicit a political agenda discussion because who would pick Romney as a model to use as their standard of understanding when so many other models exist?
No, I wasn't trying to start a political agenda or war. I specifically was looking up how Romney gained his wealth, THEN I decided to start this thread on the 1%. Considering his "we were living in a basement" story, to where he is now, that's a lot of growth.
Quote:
Originally Posted by BigJon3475
Not really. Access to global markets and a very large and growing world wide middle class is how the 1% are getting so fabulously wealthy.
Thanks for your input and for actually answering the question.
The ones I know? Smarter then the average person and goal oriented. Stuck to it and got there as a result. Some sweat, delayed gratiification, non-gamblers.
No, I wasn't trying to start a political agenda or war. I specifically was looking up how Romney gained his wealth, THEN I decided to start this thread on the 1%. Considering his "we were living in a basement" story, to where he is now, that's a lot of growth.
Thanks for your input and for actually answering the question.
One should also remember that after Mitt Romney graduated from Brigham Young University, he entered a joint program of Harvard Law School and Harvard University Business School, studying toward a law degree and an MBA. He was able to take both programs and do well in them, which is very rare even for an Ivy League student. Those who graduate from such programs do not end up living in poverty.
The inspiration for this thread started because I was curious on how Mitt Romney became so wealthy, so I looked it up and ran across this video on how private equities work (Bain Capital). From what I understand, a lot of his income is "investment income" and it came from capital gains. Since he had a lot of investment income, he could use the corporate tax write-offs, which is why he paid 14%. Compared to people like my parents who made $115k, and paid 22%.
So, if I'm understanding this correctly, is this how the 1% became so rich?
There's a difference in mindset of working a job and working to make money.
The Romneys of the world know how to spot financial opportunity because that is what they do.
Put Romney in an old barn full of stuff and have him pick out valuable antiques he probably couldn't do as well as an antique collector.
Also the more money you have the less you have to lose. If Romney loses half his fortune he is still better off than I will ever be. I lose half my "fortune" I'm below the poverty line.
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