Paendragon
AmPic and SRP Moderator
- Joined
- Jan 18, 2002
- Posts
- 22,328
Until you start taking about long term capital gains tax, and the payroll tax cap, then the argument is pointless. My cousin is wealthy. Not by inheritance, he made his money. Now owns several businesses, one of which is mostly just a passion of his, not a money maker.
Anyway, here's my point. He doesn't collect a paycheck, really. His income (a good chunk of it) comes from investments and dividends. Long-term capital gains for someone in the top tax bracket fall to around 20%. Plus, lets not forget payroll taxes are capped out too.
His effective tax rate came out to about 21%.
Anyway, here's my point. He doesn't collect a paycheck, really. His income (a good chunk of it) comes from investments and dividends. Long-term capital gains for someone in the top tax bracket fall to around 20%. Plus, lets not forget payroll taxes are capped out too.
His effective tax rate came out to about 21%.