posted on Feb, 8 2011 @ 08:50 PM
I have heard all kinds of arguments regarding raising taxes on those that make more money. I just wanted to let folks know about what the UBER RICH
really do to sidestep taxation.
This is just going to be a breakdown from what I know by experience and knowledge of accounting and taxation. There will be no links, if you refute my
assertions, I would appreciate a citation.
The UBER RICH, those that make enough money to make it feasible to hire lawyers to set up tax havens, never really pay income taxation. Think of it
this way, if you run a business, would you rather pay the income tax plus social security plus medicare which comes to about 50% in the higher tax
ranges or would you rather pay a corporate tax rate where you can deduct all of your expenses, including what you eat?
Think about it, let us say you make 50k per year. Your expenses for living cost you about 42-48k per year, would it not be nice to only pay taxation
on your actual profit of only 2k-8k per year. See, this is how it works for the UBER RICH. They set these foundations and trusts up so that they are
not actually paid anything. Everything is in the corporate components, they are given like a salary of $1 per year or something ridiculous. This is
all completely legal according to the tax laws. But you and I are not allowed to do this because the cost is prohibitive to set up these tax
Now, you have these folks in government and the UBER RICH that talk about raising the individual tax rates to higher percentages. Do you actually
think that is so they have to pay higher rates? Of course not, that is to create a barrier for folks that could compete with them. If you know how
cost accounting works, with calculus formulae, there is a supposition that you have to either give a huge chunk of your money to lawyers to set this
up or you cannot go higher.
It is a rigged system and has been for about 100 years. Imagine if the tax system was set up where what you spent was what you are taxed on? Would
that be a better system than what you earn, especially if some folks never actually earn a dime by the way they set up their accounting system?
Remember, the more you earn, the more you are taxed. But imagine if you earn NOTHING and are only supplied your money by a trust or foundation.
Think about it.