Home

The US has a graduated income tax. The more you earn, the more you pay (before deductions.) At its maximum, income is taxed at 39.6%. That would generate substantial tax revenue if it actually applied to the people with the highest increases in net worth, but it doesn’t. The people generating the highest increases in net worth are doing so through investments, not paychecks. The tax rate on long term investments is 20%; which is lower than the rate paid by the people with the biggest paychecks, and lower than the rate paid by middle-income households. Skip the conspiracies, this is simple math and prudent financial planning, not tax dodge required. Make a lot of money by creating something, pay a high tax. Make a lot of money by investing in something, pay a lot less. Wealth grows from wealth, not income.

(click on the graphic for the article)

“The Super-Rich Are Taking Us For A Ride” – Salon

Advertisements

One thought on “The Public Secret Of The Richest Taxes

  1. Pingback: Data That Matters June 2015 | Pretending Not To Panic

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s