Ravi
Diamond Member
He doesn't know what he's talking about.It doesn't make sense to you because you have your head up Barry's ass.That doesn't even make sense. If he didn't donate what he did, even with the additional tax burden, he'd still have more money in the bank.
You've never actually filed a tax return, have you?
That is what UBA means.
But ask any accountant that understands the tax code, and you will see that it does indeed 'make sense'.
Without the deduction he would have been taxed on over 7 million at 35% minimum, but with out those deductions the percentage jumps 45%, which means he would have 3.5 'in the bank'.
The way Barry did it, giving away almost 2 mil, he's left with 3.7.
Understand now?
He palyed the system, rich people do it all the time.
I'll admit to not having the most complete knowledge of the tax system - but you're going to have to back this one up. The highest marginal tax rate is 35% - where did you get 45% from?
It works like this.
Say you make 10,000 and your tax rate is 35% (I'm just simplifying here, it wouldn't be 35%)
You'd pay $3,500 in taxes.
If you donated $100 bucks to charity, you'd deduct the $100 from your income leaving you $9,900 as your adjusted gross income. Your tax would then be $3,465.
Which is $35 less.
Basically, it cost you $100 to save $35 on your taxes.
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