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Plus it takes ten years to receive all the credits. Individuals are limited. You can only use the credit on $25,000 of your highest tax bracket each year, or against all of your passive income. So even someone makes $5 million in wage income the most they can save is abut $9,000 a year in taxes.
Another issue is most of these are packaged in partnership form so individuals now need a $1 million net worth (not counting your home) in order to qualify to buy them. Good ol government "helping" the middle once again.
Yep.. the structure of them make them primarily benefitical for corporations, and since most individuals dont earn enough to justify creating corporations, they cant/dont take advantage of them.. More examples of the rich getting credits the middle class cant like you said..
The thing I've been saying since day 1 here, the problem is how we tax people.. we tax income, and the rich can simply move their income down the road, and allow it to grow.. the middle class cant afford such luxuries..
Yes, why not? And "salary" is perhaps the point I want to emphasize on. Buffett can afford to show a less salary because his income isn't coming from his salary. And remember, those are his claims, not mine. Think income tax (that his secretary pays) versus capital gains tax (that Buffett's most of the taxable income is subjected to).
buffett lies when he says she pays 30%
1. she is married and a home owner...but we will let that slide
the secretary: $60,000 @ at a 30% tax rate. We’ll take her $60,000 salary at face value (but wonder why a generous guy like Buffett would only pay her that piddling amount).
What about the 30% rate? To be conservative and simple, let’s assume that the secretary has no dependents and takes the standard deduction. That would give her taxable income of $50,250 ($60,000 less 1 exemption @ $3,400 and a standard deduction of $5,360) and a federal income tax liability of $8,986.25 – $4,386.25 + 25% of the excess over $31,850. So, the secretary’s effective Federal income tax rate is only 15% ($8,986.25 / $60,000). Hmmmm.
Well, maybe Buffet is throwing in payroll taxes for Social Security and Medicare. OK, add on 7.65% — 6.2% for Social Security and .1.45% for Medicare. That gets the secretary up to 22.65%.
certainly not the 30% buffet claims
and she gets almost everything back,, her total tax liability is about 1%
But $5 million would make it easier to have assets and reduce taxes. No?
So could someone making $5 million, but on a grander scale. The point I'm making is that having (or making) more opens up greater possibilities than when you just might be going pay check to pay check.
Yes and no. (I wish life were as black and white as most on CD make it)
The number of people who make a high income like that year after year are rare. What happens more often is someone exercises stock option in one year an then they are back to their regular income after that. But a celebrity or sports star, sure, they have more options.
They do have more options but everything has strings. You could gift you $5 million to charity get a huge deduction and then take out income only but, you no longer have the $5 million.
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Originally Posted by Driller1
You are very wrong.
What you have to show is an intent to make a profit.
And that is only if you are audited.
Wrong? Ok nice attitude, not just a difference in risk taking or opinion. Go ahead and recommend some Mom should aggressively write off fake expenses for her ebay business fr years and lets ee how well that audit work out for her. I'll pass, I don't like being a partner to tax fraud.
yes UE is taxable..but only if you collected more than the 12k for the year...and the only reason you would have to pay is that they dont take on the front end of it
but the fact is that most people making under 40-50k pay NEAR zero in taxes
I earned 60k last year...3000 came out of my checks for federal income tax , and anothe 4000 came out of my checks for SS/medi....my refund was over 7000...so at 60k I paid ZERO in federal taxes (both income and payroll)
Like I said, people will not owe federal income tax only if they have enough deductions to go with it. By default, everybody owes. Consequently, and as I mentioned earlier, even households making less than $33K (the bottom-50%) paid 2.70% in taxes. That would include people who paid nothing, got back some and paid some.
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buffet LIED when he said 30% for his secretary...would you like to know why we can OFFICIALLY say buffett is LYING and the sheeple are falling for it?????
Worry less about the “sheeple” and share your idea about what do you think his incentive for doing so?
Worry less about the “sheeple” and share your idea about what do you think his incentive for doing so?
You could tax Buffet at 100%, it wouldnt affect him.. Do you not understand the math? People LIKE HIM, gain wealth TAX FREE.. how many times does this need repeated before it sinks in? We tax INCOME. Billionaires who pay nothing, can support higher taxes.. because THEY PAY NOTHING.. (or very little compared to their wealth). Its their WEALTH that makes them a billionaire, not their income, and their wealth ISNT TAXED...
It's absurd to claim the middle class don't pay their fair share of taxes in this country. Not to mention, I don't for the life of me understand why Republicans keep wanting to go after the middle class and use us as scapegoats. How about instead, we make gigantic corporations like G.E. pay their fair share of taxes. All the proposed increases for all the union members in every state in this country doesn't even scratch the surface of how much tax revenue is being stolen from this country by Big Corporations.
Corporations do pay lots of taxes, not only regarding the cost of doing business but they distribute monies out on payroll and to investors (where tons of the taxes are paid. If the people running the corps get paid, they get taxes also through the nose.
The rest either is written off some years like in this Obama recession, or they can invest back into their own company buying things (which makes that money non-taxable) or they may invest legally in buying other companies.
The goal of Corporations are to avoid loss of personal wealth through the tons of lawsuits that may even have no merit. If companies don't pay out thier money to the point there is nothing to tax, the remain tax is the same as being taxed 200% of normal.
Don't worry, through payroll and investments they pay boat loads of taxes.
Federally someone making under 50k a year pays pretty much almost no taxes.
Most people are in this range.
It has been written this year that if you CONFISCATED all the wealthies assets 100% you could not in one year even have enough money to get close to balancing the budget because there isn't enough there.
Maybe everyone below 50k should pay 10% (from ten cents on one dollar to 5k on 50K), then without the right to make deductions charge 25% to those making above 50k and that could settle it.
The number of people who make a high income like that year after year are rare. What happens more often is someone exercises stock option in one year an then they are back to their regular income after that. But a celebrity or sports star, sure, they have more options.
Rarity is not the point. The point is flexibility that higher income, assets etc affords, to which you have agreed.
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They do have more options but everything has strings. You could gift you $5 million to charity get a huge deduction and then take out income only but, you no longer have the $5 million.
That would be true whether you have a lot or nothing. But we're talking about income, assumed to be ongoing.
You could tax Buffet at 100%, it wouldnt affect him.. Do you not understand the math? People LIKE HIM, gain wealth TAX FREE.. how many times does this need repeated before it sinks in? Billionaires who pay nothing, can support higher taxes.. because THEY PAY NOTHING.. (or very little compared to their wealth)..
You could tax Buffet at 100%, it wouldnt affect him.. Do you not understand the math? People LIKE HIM, gain wealth TAX FREE.. how many times does this need repeated before it sinks in? Billionaires who pay nothing, can support higher taxes.. because THEY PAY NOTHING.. (or very little compared to their wealth)..
exactly
buffetts liberal propoganda wont effect him in the least...but it certainly will kill small businesss, and the uppermiddleclass
that is why we need the fair-tax, a consumption tax in place of the income tax
Yes and no. (I wish life were as black and white as most on CD make it)
The number of people who make a high income like that year after year are rare. What happens more often is someone exercises stock option in one year an then they are back to their regular income after that. But a celebrity or sports star, sure, they have more options.
They do have more options but everything has strings. You could gift you $5 million to charity get a huge deduction and then take out income only but, you no longer have the $5 million.
Wrong? Ok nice attitude, not just a difference in risk taking or opinion. Go ahead and recommend some Mom should aggressively write off fake expenses for her ebay business fr years and lets ee how well that audit work out for her. I'll pass, I don't like being a partner to tax fraud.
Who said fake??
Maybe you have a link from the IRS?
The question you have to answer on your schedule is, "Was all of the investment at risk"
If yes, there is no problem.
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You could tax Buffet at 100%, it wouldnt affect him.. Do you not understand the math? People LIKE HIM, gain wealth TAX FREE.. how many times does this need repeated before it sinks in? We tax INCOME. Billionaires who pay nothing, can support higher taxes.. because THEY PAY NOTHING.. (or very little compared to their wealth). Its their WEALTH that makes them a billionaire, not their income, and their wealth ISNT TAXED...
