Ever wonder why the wealthy pay less taxes? No, it is not necessarily because they have more "power", it is because they are financially smarter.
Financial intelligence is what I am trying to give to you readers, I want you to understand that even if you never make 500k a year, let alone 100k a year, it is not impossible to live the life you want. The rich get richer and the poor get poorer for many reasons, not because the poor are getting cut off because the rich are "taking it all". It is because of financial intelligence.
The middle class is shrinking, yes, in my opinion it is because they are not spending their money right. No one lives below their means anymore, everyone has to have a big hat with no cattle. Inflation is also a big killer, average inflation rate is 3% per year, if you're earning 100k a year without getting raises to keep up with inflation your salary is basically decreasing, 97k the next year, 94k the next year, 91k, and so on. My point is, if you're ever wondering why you are having a hard time affording certain things like you used too. It is because your salary is not keeping up with inflation.
Now, why do the wealthy pay less in taxes? Too many reasons. Lets start off with this, most of the super rich earn their money from investments. The capital gain tax is LOWER than income tax. This is why I urge people to invest, you are paying less taxes on your capital gains than your salary.
Inequality? Not a single bit. Raising taxes on them? Good luck.
Here are a few tax-deductions they receive.
- Mortgage interest deduction, giving you a break on interest on your house. This can benefit middle class as well
- CAPITAL GAINS. This is why Warren Buffett and many other investors pay less taxes.
- Tax-deffered accounts, this can help anyone.
- Charitable deduction
People talk down on the rich all the time, it isn't that they aren't paying their fair share, they pay their taxes, they just know how to pay less taxes than us.
Listen, nothing in life is fair. Life is not fair. No one deserves participation trophies for just being alive. We must all work together, help each other, but all in an agreeable way. I am providing free financial help/education and I hope it turns someones thoughts around on how to become financially intelligent.
Chris Barto
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