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the rich

by Odahh
5 replies
hello all.

it is common to hear in the media ..when it comes to taxes .that the rich make most of their money from investments so they pay fewer taxes .

now the other fact is that between 40-45 % of people in any given year do not make enough to have to pay taxes in the USA ..in case you do not know that line is about 11,000 USd..

higher taxes hurt poorer and middle classes far more than they do the rich for the fact ..that higher taxes tend to hit wages and not investment income .

One of the key bonuses of having a business is being able to shift what would be after tax living expenses into pretax business expenses ..when done legally ..and of course the professional advice is itself tax deductible .

the primary method to get rich and build wealth is by building a business ..and using profits from the business to make investments ..
#rich
  • Profile picture of the author Jeff Schuman
    You make a good point. Several years ago Kelly Reese had an MLM called "Retire Quickly" where he taught people how to become a virtual millionaire. One of his main points was people could start a home business and fund it just from changing their W-2 at work so they took home more money from their paycheck.

    This could be done from the tax savings a home business offered. Mayor corporations move a lot of their business overseas for tax reasons, but for the little guy starting a business is a good idea even if you have a job while you run it.
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    • Profile picture of the author Odahh
      Originally Posted by Jeff Schuman View Post

      You make a good point. Several years ago Kelly Reese had an MLM called "Retire Quickly" where he taught people how to become a virtual millionaire. One of his main points was people could start a home business and fund it just from changing their W-2 at work so they took home more money from their paycheck.

      This could be done from the tax savings a home business offered. Mayor corporations move a lot of their business overseas for tax reasons, but for the little guy starting a business is a good idea even if you have a job while you run it.
      well there are more reasons than tax reasons..but with the way the world is set up even a small business with one person at the helm..can do business world wide ..

      as far as big corporations go..much of the increase in the stock market is from high frequency trading..and corporations leaving their profits over seas and borrowing the money at low interest to buy their stocks back ..which is why unless you are managing other peoples money ..its not the best to try and get rich investing in the stock market unless you are already rich .

      At this point communism and capitalism are old ides ..as the tools of production increasingly are being made affordable to the masses ..at affordable rates .

      in the 20th century consumer world.. people got jobs to make money to buy things and pay bills ..and prior to that people had to work land to grow food enough to feed themselves and pay for the rent of their land ..most of that work was far moredifficult time consuming and back breaking than anything most of us will ever do on a regular basis .

      the industrial revolution made it so big expensive machines did most of the real hard work and the workers got a wage to do what the machines could not ..and most of the profits went to the owners of those machines ..

      that was the 20th century and the later 19th century way to build wealth and riches .

      now someone can buy a portable saw mill for a few thousand dollars..cut a three trees down and turn it into lumber ..and get the same profit that it could have taken a full large saw mill cutting down half a Forrest to make 20 years ago ..

      then there is option to use that cut lumber and turn it into a finished good with affordable equipment ..and make even more profit..and in today's market..you may not even cut the trees down until someone wants the finished product ..so it eliminates a bunch of overhead ..

      the problem lies in..building the skills to use the equipment ..then actually affording the equipment and building a customer base .. many people are doing this ..but it tends not to count in the normal entrepreneur figures ..

      the reason for that is many time instead of needing to raise capitol or borrow money from a bank ..to fund the start of a business . many people can start one of these small low overhead businesses..with stuff bough on store credit . with there own names ..or buy used equipment or new stuff .

      now ..the biggest assests you can invest in today ..are your own skill setts that allow you to add a huge chunk of value to something ..and a customer list .

      business is changing
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  • Profile picture of the author RealSocialSignals
    You would be against the flat tax, I see.

    I'm of the idea that a flat tax is the kind of proposition which would never pass if the tables were to be changed, i.e. if the masses would enjoy the benefits of the few.

    If you think about it, a buisness uses a lot more resources, has more people under it's name etc, hence its tax shouldn't be the same percentage. Not to mention that the workers already pay their taxes, so the state benefits from an overlap of hours.
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  • Profile picture of the author Odahh
    well even if there is a flat tax.. you can't tax a businesses earnings ..only it's profits ..

    in the case of a sales tax or a value added tax ..

    but a low flat tax coupled with a national vat tax , with a floor where the a money you make up to a certain point is not taxed and we have a system that if you are a citizen.. there is a guranteed minimum income ..so say the line is 10 k ..no taxes are taken from the first ten grand you make ..but if you only earn 6 grand you get that 4 grand paid out in support ..

    i think the line could be higher ..but such a system..that replaces and eliminats 90 percent of tax regulation and social security welfare system and the patch work of social program that just bloat government will be better than what we have .

    now back to the flat tax.. when it comes to business you still have to allow business to write of expenses ..if you had one number for corperaste tax.capital gains tax and income tax ....now do i have to explain the difference between revenue and profits and why you can;t tax revenue ..but you can tax profits .
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  • Profile picture of the author fdmarketers
    I agree the best way to get rich is to build a businnes and use the profits to invest x businnes.
    But now the methods of income have changed, they are no longer the traditional ....... the traditional died.
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