"The US tax code favors people who earn less from income and earn more from income-generating assets - it’s that simple."
So, true. Buffett always points out that his secretary pays a higher tax rate than he does, because he gets all of his money from income producing investments and she gets her's from a salary.
Mr. ToughMoneyLove
· 8 months ago
You have hit upon one of the biggest reasons to pay-off a mortgage. A home that you own (and not the bank) can provide you shelter services month after month, i.e., imputed income, but it's all tax-free. As tax rates go up and investment returns remain uncertain, this benefit becomes even more valuable.
bubelah
· 8 months ago
I disagree with you. Try not to pay property taxes on your house (even when fully paid off) and see WHO really owns your house!
Eden
· 8 months ago
Sad, but true.
Moneymonk
· 8 months ago
Thr Rich pay 15%
The working person pay 25% or more so true
Im on my way to become my own boss
guinness416
· 8 months ago
Can't speak to Iceland, but I have a feeling that ain't going to be true of Ireland much longer!
My in-laws in NYC make about $40k + what they make renting their basement out and a few other odd-job style things. They have a nice house in Forest Hills and a good lifestyle. No dinners in Per se or full price tickets to MOMA, but a good lifestye. It is possible.
Curmudgeon
· 8 months ago
You know, Steve, I really don't mind paying more in taxes, at least some taxes (and I am a softcore libertarian). If I'm paying more in taxes, it means
a) I am making more money (a good thing, for the most part);
b) I don't have debt (no mortgage deduction);
c) Live in a state with no income tax (you're going to one of those);
d) Or sales tax (you're out of luck there);
e) Have a fair amount of interest and dividend income (I save); and
f) Don't have any of the special-purpose deductions (a mixed blessing, but I think on the whole positive).
I have filed a Schedule C for my LLC for the past 15 or so years, and that gives me some decent deductions, though not perhaps worth the effort that I put into my business. But paying lower taxes may not entirely be a badge of honor.
Writer's Coin
· 8 months ago
I'm totally with you on this one... I hate it when people that make more money complain about paying more in taxes.
Fine. Go back to making $30,000 then. See how you like it.
All Comments
So, true. Buffett always points out that his secretary pays a higher tax rate than he does, because he gets all of his money from income producing investments and she gets her's from a salary.
The working person pay 25% or more so true
Im on my way to become my own boss
My in-laws in NYC make about $40k + what they make renting their basement out and a few other odd-job style things. They have a nice house in Forest Hills and a good lifestyle. No dinners in Per se or full price tickets to MOMA, but a good lifestye. It is possible.
a) I am making more money (a good thing, for the most part);
b) I don't have debt (no mortgage deduction);
c) Live in a state with no income tax (you're going to one of those);
d) Or sales tax (you're out of luck there);
e) Have a fair amount of interest and dividend income (I save); and
f) Don't have any of the special-purpose deductions (a mixed blessing, but I think on the whole positive).
I have filed a Schedule C for my LLC for the past 15 or so years, and that gives me some decent deductions, though not perhaps worth the effort that I put into my business. But paying lower taxes may not entirely be a badge of honor.
Fine. Go back to making $30,000 then. See how you like it.