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How about capital gains? There are many different ways to cut your capital gains, from 'depreciating values' of rented property to 'depreciating' the values of assets. Most of those 'lower earning individuals' you mention don't have property they rent out, nor do they have other 'assets' to depreciate. Most of those 'lower earning individuals' barely have enough income to pay rent, buy food to eat and clothing to wear. I should know - I'm now one of them.
Quote:
Originally Posted by Driller1
What I did was get some write offs.
And how would I do that, when every dime coming in is already slated to go out for the rent, food or clothing? And I'm not talking about expensive food or clothing, either - haven't bought new clothing in a dozen years - last new clothes I bought was in 1998, to wear to my husband's funeral. All my clothes now come from thrift shops and my food is the cheapest brands I can find at the supermarket. My only 'splurge' would be my books and DVDs.
As per usual, the concept of "Tax Breaks", "Tax Exempt", and "Wealthy" flow like so much cheap wine. I love it. All of sudden everyone is a financial expert.
I am unaware of any Tax Break that the wealthy, whomever they may be, receive simply because they are wealthy. Somehow, I do not think such a thing would ever pass muster in a society such as ours.
Mortgages and IRAs are tax breaks for the wealthy? Well, it takes an alarmingly high level of ignorance if not stupidity to believe that. Mortgages and IRAs are held by a vast array of people. I have both and wealthy I am not.
40% of the population cannot save for their retirement? Where did that number come from? No doubt conjured up out of a bottle of cheap gin. Most people can afford to save something. Most people are also materialistic and skew their own priorities. I suspect this 40% has big screen TVs, a car or two, and cable TV amongst other things that are mysteriously deemed necessary and divert potential savings. Good grief, we are not living in Somalia.
If you think the tax rate on those earning over $250,000, or whatever the Robin Hood flavor of the day is, then say so and state why. Make your case. Certainly you can do so without spewing dishonesty that is both insidious as well as absurd?
40%. LOL! Yea sure and there were 276 Communists in the State Department. Or was it 341? No, 178. Whatever, where is that gin bottle?
And how would I do that, when every dime coming in is already slated to go out for the rent, food or clothing? And I'm not talking about expensive food or clothing, either - haven't bought new clothing in a dozen years - last new clothes I bought was in 1998, to wear to my husband's funeral. All my clothes now come from thrift shops and my food is the cheapest brands I can find at the supermarket. My only 'splurge' would be my books and DVDs.
It can be done.
However, I wonder......how do you pay income taxes if you are in that position?
How about capital gains? There are many different ways to cut your capital gains, from 'depreciating values' of rented property to 'depreciating' the values of assets. Most of those 'lower earning individuals' you mention don't have property they rent out, nor do they have other 'assets' to depreciate. Most of those 'lower earning individuals' barely have enough income to pay rent, buy food to eat and clothing to wear. I should know - I'm now one of them.
The people with the write offs are the ones taking the risk.
How about capital gains? There are many different ways to cut your capital gains, from 'depreciating values' of rented property to 'depreciating' the values of assets. Most of those 'lower earning individuals' you mention don't have property they rent out, nor do they have other 'assets' to depreciate. Most of those 'lower earning individuals' barely have enough income to pay rent, buy food to eat and clothing to wear. I should know - I'm now one of them.
This is the budget I followed two years ago, before I started my current job.
Monthly after tax: $2,551
Rent: $300 (crappy apartment shared with two roommates)
Utilities: $150
Bus Pass: $95
Food: $300 (at home and eating out)
Cell Phone: $50
Internet: $75
Health Insurance: $109
Misc. Spending: $120
Savings: $1,352
Now let's suppose you work a minimum wage job ($7.25/hr where I live). If I were on a low income hourly job, I would work 65 hours/week (enough to still have some free time)
65hrs/week, 50 weeks/year: $23,562/yr
Monthly after tax: $1,557
Rent: $300 (crappy apartment shared with two roommates)
Utilities: $150
Bus Pass: $95
Food: $300 (at home and eating out)
Cell Phone: $50
Internet: $75
Health Insurance: $109
Misc. Spending: $120
Savings: $358
$358 savings per month on a minimum wage job. Save that for a year and you have over $4,000, which is more than enough to open an investment portfolio. I opened my first portfolio with $500.
However, I wonder......how do you pay income taxes if you are in that position?
Currently, my income is so low that after personal exemption, I pay less than $100/year in income taxes. So I give up a night out every month to ensure I have that $100 in my checking account to pay taxes with come April.
Currently, my income is so low that after personal exemption, I pay less than $100/year in income taxes. So I give up a night out every month to ensure I have that $100 in my checking account to pay taxes with come April.
An IRA at this point in my life is pointless. Or did you think that income I talked about was wages? It's not. SS and pension only.
To be honest, I do not know. You are text on a screen. For anyone to conduct a proper analysis of your particular situation would require actually knowing you and having access to things that you will not and should not post on a wacky website such as this one.
If you are able to **** away time whining on a computer, I reckon things cannot be that bad.
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