Wealthy people end up paying a lower percentage because they can hide their money better.
Please tell me how they do it?
(Oh no here we go again…
[/quote]
Hide money in offshore accounts.
Start a charitable organization. Have the charity fly you around he world on various junkets.
There are plenty of ways to hide income and pay less tax. They are not worthwhile to the average man but if you start pulling in 7 figures it is worth it.
To pretend that the very wealthy do not have countless tax dodges is silly.
Wealthy people end up paying a lower percentage because they can hide their money better.
Please tell me how they do it?
(Oh no here we go again…
Hide money in offshore accounts.
Start a charitable organization. Have the charity fly you around he world on various junkets.
There are plenty of ways to hide income and pay less tax. They are not worthwhile to the average man but if you start pulling in 7 figures it is worth it.
To pretend that the very wealthy do not have countless tax dodges is silly.
[/quote]
Funny-
I sited these very same examples and was admonished like a child. Talked down to like some lower class goomba who was jealous of rich people.
[quote]biltritewave wrote:
my Apologies then for calling you a massachusetts dem. You seemed reasoned at least in that last post. We will have to agree to disagree. The one principle that I think you fail to consider however is small government. Its a founding principle of our country that often goes by the way-side with any of these programs such as osha, national health care etc…in the process we wind up with more waste, more bureacracy, more mismanagment, more stagnation, and a government increasingly removed from the people. [/quote]
I would love to have a small, uninvolved government. However, as I have often said to Headhunter, the time where that is possible is past. We no longer live in a culture like we did in the pre-Revolutionary times, which I consider pure American thought.
A small government means that the corporations and businesses have absolutely no boundaries and no laws keeping them from abusing their workers.
I would be a complete libertarian if I didn’t think that anyone except the owners and bosses would benefit from it, and the rest of us would get the shaft.
I don’t believe in classic democratic speaking points like gun control, seatbelt laws, smoking laws, and anything else where the government makes laws intruding on the everyday life of its citizens.
Still waiting to find out how much extra money you send the government each year…[/quote]
What are you talking about? I make less than $20,000 and barely getting by. They take what they take. I don’t whine about it though. I just want them to use it for something useful.
Wealthy people end up paying a lower percentage because they can hide their money better.
Please tell me how they do it?
(Oh no here we go again…
Hide money in offshore accounts.
Start a charitable organization. Have the charity fly you around he world on various junkets.
There are plenty of ways to hide income and pay less tax. They are not worthwhile to the average man but if you start pulling in 7 figures it is worth it.
To pretend that the very wealthy do not have countless tax dodges is silly.
Funny-
I sited these very same examples and was admonished like a child. Talked down to like some lower class goomba who was jealous of rich people.[/quote]
Wealthy people end up paying a lower percentage because they can hide their money better.
Please tell me how they do it?
(Oh no here we go again…
Hide money in offshore accounts.[/quote]
Let’s explore this one. If a rich guy makes 1 million dollars in 2006 how does he “hide it in offshore accounts” without first paying tax on it on the way out?
Let’s say the rich guy who made 1 million dollars in one year starts a charity with 100-k. That means that he does not pay any taxes on the 100-k. Which means he saved himself probably close to 50-k. But, if he in fact flys himself all over the world (or whatever) he spends that 100-k.
How did he save any money?
He saved 50-k on the donation to “his” charity. But he spent an additional 100-k of his money.
[quote]There are plenty of ways to hide income and pay less tax. They are not worthwhile to the average man but if you start pulling in 7 figures it is worth it.
To pretend that the very wealthy do not have countless tax dodges is silly.
[/quote]
I’m not pretending anything!
Maybe they do exist, and I have just never seen them.
All I am saying is please show me where those loopholes are.
You have not done that with the two examples above.
Start a charitable organization. Have the charity fly you around he world on various junkets. [/quote]
By the way that charitable organization is going to be under some very heavy rules and regulations by the IRS. In other words it better be doing something…well…charitable or that rich guy is in some serious poop.
Again, the charity does not seem to save him any real money anyway.
I would be a complete libertarian if I didn’t think that anyone except the owners and bosses would benefit from it, and the rest of us would get the shaft.
[/quote]
GASP! Heaven forbid that the owner of a small business get a tax break from big government.
Especially when all he does is abuse those poor workers…
Who for some reason continue to work for the guy when they could just go out and get anothe job.
Wealthy people end up paying a lower percentage because they can hide their money better.
Please tell me how they do it?
(Oh no here we go again…
Hide money in offshore accounts.
Let’s explore this one. If a rich guy makes 1 million dollars in 2006 how does he “hide it in offshore accounts” without first paying tax on it on the way out?
[/quote]
Get paid overseas. It is not really that hard. People that are pulling in 7 figures are usually tied into multinational corporations and have ways of depositing money overseas that does not have to go through the US.
Athletes and movie stars do this all the time. They take vacations and call it charity work. Their charitable foundations foot the bill for everything and they don’t take the tax hit.
One good example of this is Don Imus. He has a big ranch I think is in New Mexico. He has a charity for kids with cancer that go spend time on his ranch.
The kids live in a dorm and his ranch house is a mansion. The vacation home he spends all his free time in is part of his charitable foundation. Instead of buying it with his taxable earnings he bought it with his tax free “donations”. He could buy a bigger house for himself because he did not have to pay tax on his money.
You don’t even have to start a charitable organization. Just incorporate yourself. Take depreciation on your car, home office, and anything else you can tie to your corporation. This only is worthwhile if you make enough money to do it.
Get paid overseas. It is not really that hard. People that are pulling in 7 figures are usually tied into multinational corporations and have ways of depositing money overseas that does not have to go through the US.[/quote]
If you are working for a company that pays YOU, and you are an American citizen you owe tax on that money!
PERIOD
The only way that I am aware of to avoid that is to give up your citizenship.
If I’m wrong on this one, please explain exactly where I have erred.
So, you are saying that the point of the charity is for Mr. “famous” to do benefit work in “X” amount of places during any given year.
Well, then how does Mr. high paid exectutive rich guy gain from that since he does not have such fame.
Also, if money goes into the charity it must be used for charitable purposes. A certain amount each year HAS to be donated to legitimate causes according to the IRS code. Granted there can be certain “costs” attributed to various things. But it has to be legitimate. I’m not sure you understand how much these private charities are under the microscope of the IRS (and should be).
Could you explain how that defers his 4 million dollars per year salary? (I’m not sure what he makes).
So basically he used donations to build a ranch that he uses for kids with cancer.
My first impression: He has a national radio show and able to promote such an endeavor. He can raise donations through his program.
How does Mr. rich guy executive do this?
Also, it sounds like this is a legitimate charity and not a loophole. He is doing something really great here.
(Let’s start the Zap and Zeb rancho-del-rio…no?)
Are you saying that he stays there himself on occasion and that’s why it’s a loophole?
According to this web site it is a full-time ranch for kids with cancer:
“Its sole purpose is to provide the experience of the great American cowboy to children suffering from cancer or serious blood disorders, and children who’ve lost brothers and sisters to Sudden Infant Death Syndrome (SIDS).”
But even if he did stay there on occasion I don’t see the great benefit. In fact it would probably cost him less money, time and hassle if he and his wife simply put up the money for a western type vacation each year for the few weeks they might be staying there.
What am I missing here? Keep in mind I’m not a tax guy…just a guy looking for tax breaks.
Basically, you are running a business out of your home. And those deductions are legitimate business costs. And as you say it’s only worthwile if you are actually making money.
These are legitimate business deductions. I wouldn’t call it a loophole, would you?
Well, I appreciate the time and thought that you put into it. But, quite honestly I don’t really see any “loopholes” or great tax breaks for Mr. rich executive here.
Regarding an American citizen hiding money overseas it is sone all the time. I know people that have worked overseas and have accounts that have not been touched by the taxman.
Regarding Don Imus, his advantage is he gets to live like a king on the charity. His money goes twice as far because he is not taxed.
The charity can pay to fly him back and forth to his mansion etc.
Does it help sick kids? Sure. Does it help Imus? Of course.
For the average exec that works all the time and does not have time for these boondoggles he just saves money by having his compensation hidden.
Rather than being taxed on income and then buying a car his company buys or leases the car. It takes a depreciation on the car and gets a tax break on the deprecation. He drives it.
He has the use of a car and pays a lower tax burden on it than the average Joe that is forced to buy or lease his car with his taxable income.
I am not an accountant so I do not know all the tax dodges.
20 years ago when I was a teenager my neighbor incorporated himself so he could take a tax break on the depreciation of many of the big ticket items he owned.
I know the laws have changed in this area, but the tax code is incredibly thick and is full of these “loopholes”.
[quote]hspder wrote:
ZEB wrote:
By taking that risk he is creating wealth!
No he is NOT. That is a completely absurd, incorrect and ignorant statement that shows you either never had Econ-101 or slept through the whole thing.
I am done with you. Really. I have no time or patience for talking at intellectual black holes like you.
[/quote]
You really want to get into a discussion about starting a business and the entire chain of wealth creation?
There are other factors that go into creating wealth, no doubt. But if that entrepreneur did not make that first move in creating wealth by taking a risk and investing capital there would no creation of wealth!
You really don’t like capitalisim, or christianity…
