Why American Workers Pay Twice as Much in Taxes as Wealthy Investors • Hacker News Board

Re: Why American Workers Pay Twice as Much in Taxes as Wealthy Investors

#321

Post by dogruck » Wed, Sep 13, 2017, 6:45 PM UTC

jermaustin1 wrote: post #302

dogruck wrote: post #289

Earlier quoted context omitted.

Why would you choose a job that paid far in excess of your needs and lifestyle choices. Do you know many people with high incomes but super frugal lifestyles? If so, are they a rare counterexample, and not the norm? Most every person I knows spends in line with income.

For many reasons: 1. Rainy day fund, because you know one day the high pay may stop. 2. Retirement, because you know one day your ability to work may stop. 3. Estate planning, so that your family will be set up for a life that was better than the one you were given. 4. Investment capital, so you can turn your 100s of thousands into 10s of millions or more. 5. Startup capital for a future venture. The difference betwe…

Ok, sure, you save your excess income. Then, later, one of two events happen:

1. You spend the savings, and pay consumption tax

2. You die, and pay the estate tax.

Re: Why American Workers Pay Twice as Much in Taxes as Wealthy Investors

#322

Post by jermaustin1 » Thu, Sep 14, 2017, 12:22 PM UTC

dogruck wrote: post #321

jermaustin1 wrote: post #302

Earlier quoted context omitted.

For many reasons: 1. Rainy day fund, because you know one day the high pay may stop. 2. Retirement, because you know one day your ability to work may stop. 3. Estate planning, so that your family will be set up for a life that was better than the one you were given. 4. Investment capital, so you can turn your 100s of thousands into 10s of millions or more. 5. Startup capital for a future venture. The difference betwe…

Ok, sure, you save your excess income. Then, later, one of two events happen: 1. You spend the savings, and pay consumption tax 2. You die, and pay the estate tax.

The difference is that in an economic down turn, I am protected by my vast wealth, where a poor person has no savings because they spend every dollar they have on necessities.

A consumption tax is always regressive.

Re: Why American Workers Pay Twice as Much in Taxes as Wealthy Investors

#323

Post by pas » Thu, Sep 14, 2017, 9:19 PM UTC

SilasX wrote: post #319

pas wrote: post #314

Earlier quoted context omitted.

Use a company car, and company pay for gas. You can deduct that as expense. Company phone. Company pays your data plan. Deduct. You register your company at home, okay you can make an office, you can then deduct some expense as facility operational costs. (Of course there are a lot of regulations for this, and you have to document how big the office is, and it can't be bigger than X% of the house, otherwise it'd be i…

What is that responding to? I said it has its own dangers and the IRS stamps it out but there are some minor ways where it cant.

I wouldn't consider these minor.