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Old 02-16-2014, 05:41 PM
 
Location: SC
8,795 posts, read 6,514,098 times
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The Self-Made Myth

The self made myth. 60% gained their wealth through inheritance or privilege.
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Old 02-16-2014, 06:02 PM
 
Location: PA
2,113 posts, read 2,048,531 times
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Quote:
Originally Posted by nealrm View Post
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.
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Old 02-16-2014, 06:08 PM
 
27,980 posts, read 36,090,541 times
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Quote:
Originally Posted by Pinkmani View Post


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.
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Old 02-16-2014, 06:09 PM
 
4,750 posts, read 3,781,165 times
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Quote:
Originally Posted by Mack Knife View Post
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 View Post
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.
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Old 02-16-2014, 06:12 PM
 
Location: The Land of Reason
13,241 posts, read 11,128,625 times
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Originally Posted by malamute View Post
Just like Oprah --- they get rich from investments. Oprah is exceedingly rich.

Huh, Oprah actually worked.
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Old 02-16-2014, 06:13 PM
 
Location: The Land of Reason
13,241 posts, read 11,128,625 times
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Quote:
Originally Posted by StuffedCabbage View Post
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.

Of course like the Hilton sisters!
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Old 02-16-2014, 06:16 PM
 
894 posts, read 784,865 times
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Class envy. Sigh. The class warfare is working. THANKS OBAMA!
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Old 02-16-2014, 06:20 PM
 
3,327 posts, read 3,105,577 times
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Quote:
Originally Posted by Pinkmani View Post
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.
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Old 02-16-2014, 06:21 PM
 
4,750 posts, read 3,781,165 times
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Quote:
Originally Posted by iowa4430 View Post
Class envy. Sigh. The class warfare is working. THANKS OBAMA!
I'm not envious at all. I'm just wondering how the 1% got so rich, so that I could do the same.
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Old 02-16-2014, 06:31 PM
 
12,576 posts, read 14,081,330 times
Reputation: 8946
Quote:
Originally Posted by Pinkmani View Post


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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