Zone1 Tax the Rich! Make them Pay their Fair Share!

[Lisa558]

You pay more its taxed as income at a higher rate

Not a ROTH. The gains are not taxed at all.

 

[alang1216]

Actually, the poor do not pay at a higher rate. They don’t pay income taxes at all. They instead are net TAKERS.

The bottom HALF of the population contribute only 3% of all federal income tax. We have to get more people to pitch in.

Whether the poor pay more in taxes than the rich depends on the taxes included in the calculation.

• The federal income tax is progressive, with higher earners paying a higher effective rate.
• When all federal, state, and local taxes are combined, the tax system is not as progressive, and some analyses show that the poorest Americans pay a higher overall effective rate than the wealthiest.

 

[Hafar1014]

Not a ROTH. The gains are not taxed at all.

I had to look that up youre right. They are funded by after tax money. That means you will be investing less than pretax money and will be worth less in retirement. So youll pay less taxes on less money.

 

[alang1216]

Anyone can pay a capital gains tax. Just invest.

Ahhhh, the 'let them eat cake' defense.

 

[Hafar1014]

Whether the poor pay more in taxes than the rich depends on the taxes included in the calculation.

• The federal income tax is progressive, with higher earners paying a higher effective rate.
• When all federal, state, and local taxes are combined, the tax system is not as progressive, and some analyses show that the poorest Americans pay a higher overall effective rate than the wealthiest.

The poor pay zero income tax and get free benefits

 

[alang1216]

The poor pay zero income tax and get free benefits

Those lucky poor! Unfortunately they pay the same sales and gas tax as you do.

 

[Hafar1014]

Those lucky poor! Unfortunately they pay the same sales and gas tax as you do.

Thank democrats for the high cost of those.

 

[Lisa558]

I had to look that up youre right. They are funded by after tax money. That means you will be investing less than pretax money and will be worth less in retirement. So youll pay less taxes on less money.

It’s complex.

I ran numbers (with the help of my math genius father, may he RIP), and it makes sense if you are young to pay taxes now and then enjoy 30 or 40 years of gain - with none of it being taxable. Where it becomes “iffy” is if you’re already in mid-career, paying taxes at a high rate, and don’t have that many years to accumulate non-taxable gains.

 

[Lisa558]

Those lucky poor! Unfortunately they pay the same sales and gas tax as you do.

Not if they’re getting $1000 a month on food stamps!

 

[Hafar1014]

It’s complex.

I ran numbers (with the help of my math genius father, may he RIP), and it makes sense if you are young to pay taxes now and then enjoy 30 or 40 years of gain - with none of it being taxable. Where it becomes “iffy” is if you’re already in mid-career, paying taxes at a high rate, and don’t have that many years to accumulate non-taxable gains.

When you retire your tax rate drops

 

[Lisa558]

When you retire your tax rate drops

Again, complex. Once I am forced to take required distributions from my IRAs, I’ll be paying at a higher rate than I did while working.

Everyone’s case is different.

 

[Hafar1014]

Again, complex. Once I am forced to take required distributions from my IRAs, I’ll be paying at a higher rate than I did while working.

Everyone’s case is different.

Own a business and take money under the table tax free.

 

[Lisa558]

Own a business and take money under the table tax free.

That’s illegal. I’m talking about law-abiding taxpayers.

In my case, once I have to take IRA distributions, that plus my SS plus an annuity will add up to more than I ever earned in a year.

My tax rate will be higher.

 

[Hafar1014]

That’s illegal. I’m talking about law-abiding taxpayers.

In my case, once I have to take IRA distributions, that plus my SS plus an annuity will add up to more than I ever earned in a year.

My tax rate will be higher.

Every small business owner skims form himself. Tax free investments should be part of your retirement. Most annuities ay less but they have a place.

 

[Lisa558]

Every small business owner skims form himself. Tax free investments should be part of your retirement. Most annuities ay less but they have a place.

I owned a small business and did not skim a cent.

I bought my own annuity. What I did was figure out my basic expenses (mortgage, utilities, insurance, food, gas, etc.) and how “short” I was with only SS, and bought an annuity to make up the difference.

This way, I will never have to sell stock in a down market.

 

[Hafar1014]

I owned a small business and did not skim a cent.

I bought my own annuity. What I did was figure out my basic expenses (mortgage, utilities, insurance, food, gas, etc.) and how “short” I was with only SS, and bought an annuity to make up the difference.

This way, I will never have to sell stock in a down market.

You should have. Stocks support me and I never have to sell in any market unless its my choice. I retired at 52. I had 5 businesses.

 

[alang1216]

Not if they’re getting $1000 a month on food stamps!

That would be a big family with no income. They may not be starving but they are not living the life I'd envy. I don't begrudge them food, do you?

 

[Lisa558]

You should have. Stocks support me and I never have to sell in any market unless its my choice. I retired at 52. I had 5 businesses.

I think I did pretty well for myself, and obeyed take laws at the same time.

I just had the one business, but still….allowed me to buy an upscale home in an affluent area, enjoy international travel, and so forth. There was no need for me to cheat.

 

[Lisa558]

That would be a big family with no income. They may not be starving but they are not living the life I'd envy. I don't begrudge them food, do you?

I begrudge them soda and candy. That $1000 supplement will go far if spent wisely.

And true, I wouldn’t enjoy life as a welfare recipient. That’s why I didn’t have children out of wedlock, went to college and majored in a marketable field, and worked my way up until I was skilled and experienced enough to start my own business.

 

[Hafar1014]

That would be a big family with no income. They may not be starving but they are not living the life I'd envy. I don't begrudge them food, do you?

The poor have big screen TVs. I had client in Phila who didnt work and was on welfare. Her benefits were the equivalent of over 100,000 dollars a year. Free income, furniture, health care, food, child care and she had 3 therapists I was one all paid for.