What is even worse is they take that 300 million in stock use it as collateral on a very low interest rate line of credit/loan and they reinvest that money in their choice of investment.
Where as the normal 'lay' person say has 50,000 they have to first pay income tax, then employment taxes, then state taxes....before they decide what they want to invest. Oh they can do some of this investing "pre tax" but there are LIMITS and tax implications years later. Odd how there is no limits on that 300 million huh?
Buh Byeeeeeeeeeeee !!
The problem is that you are ignoring actual reality, while swearing that is exactly what happens.
Yes, wealthy people do borrow against their stocks. That's because those stocks are assets. Normal people also borrow against their assets, they just tend to use their home equity. The premise is the same.
Again with the “you”.
You really don’t. Gotta love that American Car Tax. Everyone owning a small business? There used to be a lot more small businesses. I wonder what happened to them?
But your home can get fucked just as easily by your rich assholes as anything else. The Texas power failures being a good recent example of that.
The wealthy decided that American life should be car centered as possible. Sucks that life is governed by a constantly depreciating asset.
Walmart, Amazon and others have been gutting small businesses for decades. I think you called it “capitalism”.
They’re income if your collateral will make more money than the loans interest.
You've been shown, repeatedly, that this is NOT what's happening. They are using the stocks as assets to take out loans that they have zero intention of repaying. So they are getting income because of the stocks they own, on which they pay NO tax.
The loans eventually get repaid as part of the estate when they die.
This is how they are avoiding paying the tax that they should do; because the rules that they help to ensure are written this way are designed to help them to avoid tax.
Any danger of you admitting these simple facts, or are you going to carry on repeating the same tired lies you've been spouting for pages in this thread?
When challenging a Kzin, a simple scream of rage is sufficient. You scream and you leap.
Originally Posted by George CarlinOriginally Posted by Douglas Adams
It's not bad faith, it was literally proving you wrong, based on actual news reports.
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Not everyone is going to be a billionaire, or even a millionaire. But, you can work to have a better life.
They are debt.
The income from those assets occurs when you sell it... like Bezos has done many times.
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I've shown repeatedly that Bezos specifically has sold stock, and paid taxes on it... just like when I sell stock.
And they can take out loans, as can I. I can donit on my stocks, home, and any other assets I may have. They simply have more of those things, so they can borrow more.
So can you take out loans on your stocks and use that as a sole source of income? Can you exist purely on that stream of income, ensuring that you pay no tax? If you're an average working person, you certainly can't.
I'd also ask where you think you can do that; where can you take out a loan against your assets that doesn't need to be repaid until you die? You think that your average bank is going to offer that to the average working person?
Stop pretending that the avoidance methods that the super rich employ are somehow available to normal people. That's like saying they'd be able to fly because wings exist, so in theory they could have some.
When challenging a Kzin, a simple scream of rage is sufficient. You scream and you leap.
Originally Posted by George CarlinOriginally Posted by Douglas Adams
Again with the “you”. This isn’t about being a millionaire or billionaire. Your work is irrelevant.
For example, you’ve admitted to having a 401k. This might work for you but it’s still a device designed to have no collective power and extract management fees from you. It’s value is subject to the whims of the wealthy regardless of how responsible you are with it.
They’re not debt. It would be debt for most people but it’s not for them. Even if they choose to pay the money back (not a guarantee) they do it at a time when it’s convenient (ie they’ll make money). Bezos has sold stock yet he’s wealthier than ever because he has greater options than regular people.
No, I can take out loans, using my stock as collateral, and pay it back over time. It's not my single source of income, because it's technically debt. On top of that, it's not their single source of income, either.
I'm literally one (maybe two) clicks away from being able to do it right now.
So long as my stock outpaces the interest from my loan, then I'd be able to sell that stock, and pay back the loan. I'd be taxed when I sold my stock, just like always.
The issue isn't that it's not available. The issue is that they can simply do it way more often, with more money.
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I have a 401k, because my company matches it, which is "free money." Otherwise, I also have mutual funds, because I'm not a fucking expert, and cede to the experts on how to handle some of my money. On top of that, I also choose to invest in stocks, based on things that I support, and think will be a good investment. I also have a Roth IRA, so I can have some tax-free money if I need it after I retire (taxes are taken out beforehand, not afterwards).
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Are you saying the problem with the wealthy only started when the inflation rate spiked due to the pandemic?
https://tradingeconomics.com/united-.../inflation-cpi
I cannot imagine you even know what the hell you're trying to argue.
Careful. You're acknowledging that having great wealth confers an advantage.
Its not "free money". Its part of your salary. Furthermore, most people don't have jobs that do that.
Not everyone has the spare cash for mutual funds. Imagine having to pay the plumbing because your pipes burst through no fault of your own.
See above.
Did you fatten up your IRA with inside information?
Ok guys, how many pages have we gone with Machismo making excuses NOT to understand this basic stuff on MULTIPLE threads?
Since we can't call out Trolls and Bad Faith posters and the Ignore function doesn't actually ignore it. Add
"mmo-champion.com##li.postbitignored"
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Having wealth does have an advantage, because wealth builds upon wealth. The existence of compounding interest alone demonstrates that. They have more money, so they can save more money, and invest more money. That's why it took several years for me to save my first $100k, because it starts slowly. But, it picks up steam as you continue to put money away, and the interest builds on itself.
60 million Americans have a 401k, and half of all Americans own stock. That's a sizeable number. And yes, any adult can buy stocks. Things like plumbing are part of the expected expenses of owning a home. It's like not preparing for your car breaking down. Those things are a statistical inevitability, so it's not a matter of if such things happen, but how long until they do happen. You highlighted (albeit unwittingly) on one of the main reasons people never really escape the paycheck-to-paycheck life... not planning for those eventualities.
Limited Time to Save Social Security and Medicare
Today, the Social Security and Medicare Trustees released their annual reports on the state of the trust funds. The Trustees find that Medicare’s Hospital Insurance trust fund will be insolvent by 2026, Social Security’s Old-Age and Survivors Insurance trust fund will run out of reserves by 2033, Social Security’s Disability Insurance trust fund will be depleted by 2057, and the theoretically combined Social Security trust funds will be insolvent by 2034. Upon insolvency, Social Security will be reduced across-the-board by 22 percent under current law.
Originally Posted by Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
I do understand it, and I literally pointed it out in my very first quote.
People say the "loopholes" are the problem, but others use them. If the problem is stock ownership, and they want to tax that ownership, then that directly impacts the 60 million people with a 401k, and half the country who owns stocks.
If this is about borrowing against assets, and calling it income.... then that means even mortgages (not even just home-equity loans) would be considered income.
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Yep, that's what happens when people don't plan. This has been kicked down the road for almost two full generations.
Don't worry, they'll just shift the burden onto the national debt, and screw over future generations.
No, you literally don't. I went in circles around with you spelling them out and you went out of your way NOT to understand it on multiple threads and multiple topics. You will intentionally not allow yourself to understand topics if knowing them contradicts the ideology you want to adhere to.
Since we can't call out Trolls and Bad Faith posters and the Ignore function doesn't actually ignore it. Add
"mmo-champion.com##li.postbitignored"
to your ublock or adblock filter to actually ignore ignored posters. Now just need a way to ignore responses to them as well.
For someone who's been such a pedant about what words mean, c'mon, you know this is a lie.
Your company's matching of your 401k is part of your compensation package. It's just a part your company expects that many of its employees won't fully capitalize upon, meaning they can get away with paying them less than they're actually worth.
Like health insurance and all those other things, they're just ways that companies hide compensation in ways that they find more cost-effective than just paying more directly.
It isn't "free money", it's mathed into your basic compensation. On their end, at least. If you weren't mathing it in on yours, then they were taking advantage of you; they get to get away with paying you less than they should be.
I understand them just fine. I'm simply pointing out the dangers of going after those "loopholes."
This thread is about wealth increase, and them not paying what Propublica thinks they should, because their wealth went up.
Their wealth went up, because their stock prices skyrocketed. People immediately chimed in to tax them for those assets, instead of just their income. That would mean taxing all those other people on their assets (stocks), which is tens of millions of people. If you tax the increase in stock prices, before the gains are realized, then that would crush people with their 401k plans, or those who simply owned stocks, which is over half of all Americans.
And with these wealthiest 25, almost all of them stared the companies that made the rich, the Walton family being the major exception. In their case, they simply inherited it from the one who did start the company.
There's a reason taxes are levied when gains are realized, so that they don't actually have to sell property to pay for that property.
Now, if the issue is low-interest loans using collateral as assets, then we're also dealing with things like home-equity loans. Yes, I get that the wealthy are able to do this more, and that makes sense, they have more assets. It's not an indictment against the existence of collateral, it's a useless whine that they have more collateral in the first place. And make no mistake, most of them have more collateral, because they quite literally built their collateral.
Now, the third issue mentioned by the OP: It's not worse than we think, it's simply people not knowing what the fuck they are talking about. This is made worse by Propublica trying to pull their True Tax Rate out of their asses, so people can see small numbers, and be outraged.
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Yep, and I participate in that 401k plan, because it's free fucking money. I'm not obligated to, but it would be foolish to leave that money on the table. Anyone who is offered a 401k match, should take it. Once again, it's like saying you don't want your full compensation.
It's also why I use corporate-backed healthcare, as well. Of course, if I didn't like it, I could always choose to work for a different company. If you don't like that companies are offering healthcare, take it up with Obama and the Democrats, who required it.
Me and you went around for pages about Social Security only for you to intentionally not understand stuff, in the past we went over minimum wage and again, you went out of your way NOT to understand stuff.
Things on multiple topics have been explained to death to you and you go out of your way to not understand them at a basic level while pretending you do.
As much as I hate to say it, you personally are what Shalcker, TexasRules and the rest aspire to be on these forums. They just can't do it as effectively without losing their cool. You have gone countless pages on countless things and claim you get them while acting like you don't. At this point, I am not sure if that is intentional or not.
Since we can't call out Trolls and Bad Faith posters and the Ignore function doesn't actually ignore it. Add
"mmo-champion.com##li.postbitignored"
to your ublock or adblock filter to actually ignore ignored posters. Now just need a way to ignore responses to them as well.