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I'm not seeing any evidence that millionaires are reducing their multi-million dollar incomes to the point where they pay zero in taxes. In fact, the IRS data states quite the opposite: the higher one's income, the fewer deductions one is able to take.
If that were true, the top 1% wouldn't be paying nearly twice their fair share, which they are. They'd be much more like the bottom 90%, UNDER-paying their fair share.
Warren Buffet has noted that he pays fewer taxes, on a percentage basis, than his secretary and other employees, since a bulk of his wealth is in stock rather than wage income. Capital gains are taxed at a lower rate than regular income.
Wealthy people usually have larger mortgages, thus bigger interest deductions. They can afford big charitable donations, which are tax-deductible. If they own a business, they can set up a defined benefit retirement program for themselves that is much bigger than any 401k or IRA.
Because payroll (FICA) tax is capped, the wealthy pay a smaller percent of their income to it. Other things like sales tax, gas tax and excise taxes will likely take a smaller percentage of their income.
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Quote:
Originally Posted by InformedConsent
I'm not seeing any evidence that millionaires are reducing their multi-million dollar incomes to the point where they pay zero in taxes. In fact, the IRS data states quite the opposite: the higher one's income, the fewer deductions one is able to take.
If that were true, the top 1% wouldn't be paying nearly twice their fair share, which they are. They'd be much more like the bottom 90%, UNDER-paying their fair share.
Then read my prior post, the former President paid 0 in 2020 and only a few hundred in the years prior. https://www.deseret.com/2022/12/30/2...turns-released If you don't like the link just search for Trumps Tax returns and pick one you like.
The point is those making the millions have for more angles to keep their money then the guy scraping by whether that is equitable or not is subjective.
Last edited by VA Yankee; 05-05-2023 at 01:40 PM..
Warren Buffet has noted that he pays fewer taxes, on a percentage basis, than his secretary and other employees, since a bulk of his wealth is in stock rather than wage income. Capital gains are taxed at a lower rate than regular income.
The lowest capital gains tax is 20%. Now add the 3.8% investment tax. That's an effective federal tax rate of 23.8%, which is HIGHER than the effective tax rate paid by the bottom 99%:
Quote:
Wealthy people usually have larger mortgages, thus bigger interest deductions. They can afford big charitable donations, which are tax-deductible. If they own a business, they can set up a defined benefit retirement program for themselves that is much bigger than any 401k or IRA.
There are limits on charitable donation and 401k contribution deductions. Plus, the AMT applies, which at its lowest is 26%.
Quote:
Because payroll (FICA) tax is capped, the wealthy pay a smaller percent of their income to it. Other things like sales tax, gas tax and excise taxes will likely take a smaller percentage of their income.
SS benefits are capped, as well. Furthermore, because SS benefits are progressive, higher-income earners have been LOSING money on SS since the mid-1990s.
Quote:
Social Security benefits are progressive, so most low-income workers retiring today still will get slightly more in benefits than they paid in taxes. Most high-income workers started getting less in benefits than they paid in taxes in the 1990s, according to data from the Social Security Administration."
Then read my prior post, the former President paid 0 in 2020 and only a few hundred in the years prior. https://www.deseret.com/2022/12/30/2...turns-released If you don't like the link just sear for Trumps Tax returns and pick one you like.
On how much income? THAT'S the key factor. The AP said he deducted losses, which is allowed. When one's losses meet or exceed one's profit and/or income, the tax bill is zero. Obviously, because there was no income, so there's no income to tax.
Yep, here it is... Trump was $5 million in the red for 2020. No income = no income tax.
Quote:
Despite pulling in nearly $11 million in interest from investments in addition to his nearly $400,000 salary, Trump did not pay income taxes because he also reported a $16 million loss from his real estate businesses. That loss put the former president almost $5 million in the red for 2020. That means he didn’t have any taxable income and he didn’t pay anything in income tax.
“I think Trump’s 2020 losses were real, largely resulting from business losses he suffered at the start of the COVID pandemic,” Steve Rosenthal, a tax expert with the Urban-Brookings Tax Policy Center, said in an email to The Hill. “That is why he paid zero taxes in 2020.”
Status:
"Let this year be over..."
(set 19 days ago)
Location: Where my bills arrive
19,219 posts, read 17,085,392 times
Reputation: 15538
Quote:
Originally Posted by InformedConsent
On how much income? THAT'S the key factor. The AP said he deducted losses, which is allowed. When one's losses meet or exceed one's profit and/or income, the tax bill is zero. Obviously, because there was no income, so there's no income to tax.
Yeah Trump Inc made no money that year,very funny...
You're proving my point. It's what I said in the postings, those that are rich have more opportunities to use deductions to bring their tax obligation down to 0. And you're complaining about the guy scraping by not paying his fair share.
You're proving my point. It's what I said in the postings, those that are rich have more opportunities to use deductions to bring their tax obligation down to 0. And you're complaining about the guy scraping by not paying his fair share.
You're completely missing the point that ZERO income and/or profit = ZERO income tax. Trump had a negative income for 2020 (his businesses lost nearly $5 million). He was FAR from alone in that.
On how much income? THAT'S the key factor. The AP said he deducted losses, which is allowed. When one's losses meet or exceed one's profit and/or income, the tax bill is zero. Obviously, because there was no income, so there's no income to tax.
It has been covered a hundred times that Trump's corporations were taking deductions from losses in past years.
Liberals have no clue how businesses work or how they write off losses or what the tax code allows for after incurring business losses. The act likte Trump paid no taxes on high profits. Had he made profits, he would have paid taxes that year.
But, when you only get your news from CNN and the New York Times...
I wouldn't hold my breath waiting for an apology, retraction, or any other acknowledgement he was wrong and didn't know the facts of the matter. "Heads I am right, tails "what? Huh? I never said that!"
You're completely missing the point that ZERO income and/or profit = ZERO income tax. Trump had a negative income for 2020 (his businesses lost nearly $5 million). He was FAR from alone in that.
What is funny is that they never criticize liberal billionaires who enjoy benefitting from the same IRS tax code. Soros has Trump beat.
IRS records show wealthiest Americans, including Bezos, Buffett and Musk, pay little or no income tax
Amazon founder Jeff Bezos paid no income tax in 2007 and 2011. Tesla founder Elon Musk’s income tax bill was zero in 2018. And financier George Soros went three straight years without paying federal income tax, according to a report Tuesday from the nonprofit investigative journalism organization ProPublica.
Last edited by Igor Blevin; 05-05-2023 at 03:52 PM..
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