How The Rich Avoid Paying Taxes
The more money you make, the more you have to pay in taxes, right? Not always. The ultra-wealthy typically take advantage of rules in the tax code which enable them to lower their effective tax rate. Warren Buffet has often pointed out that he pays less taxes than his secretary and Amazon famously paid zero taxes in 2018. So how exactly are the country’s biggest earners using the tax code to avoid paying taxes?
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How The Rich Avoid Paying Taxes
Me: gets paycheck IRS: roses are red violets are blue half that check doesn’t belong to you
the keyword is paycheck. solution, start a company, with own $, work 60 hrs a week, pay the employees, or make the kids work, then pay the bills, and Oh, sweep the floor and clean the toilet.
I say that if a person doesn't want to pay taxes they don't deserve to use a single thing that those taxes provide them. It's always the people that benefit the most from taxes that complain about them most
@@pranav4937 did you not see that companies like Amazon pay no taxes, but my first paycheck they take 1/3 so spend on ammo??
In what world are you paying half in taxes?
The only way one can become wealthy is by making reasonable investments.
Tax avoidance: legal. Tax evasion: illegal
Finally, someone who said something smart within all of these dumb ass comments lol
Fiction?
step 1: hire an accountant step 2: listen to the accountant step 3: repeat step 1
what are the accountants tips
False.
@David Wang i actually own AT&T
@David Wang the loophole is you earn very little, use as much government resources as a rich person, and pay very little net tax on your pittance of an income
@@Diego-es9yb wut
I used to flip houses, but taxes were ridiculously high. Now I rent them out and my taxes are ridiculously low.
Good ol' ordinary income.
I am EA.. take alllll your real estate asset and convert it to holding llc and do a solo 401k.....it will be a lot lower
Yes somebody who understands expenses and depreciation.
Thank
you should do 1031 when you flip. So you can avoid capital gains taxes
2:43 My left ear liked that
Just for you they edited this video
These are the thing that needs to be taught in school
Fun fact : Even if the schools taught us taxes, financial freedom and useful stuff we still wldnt pay attention
Government in the United States controls schools so legal tax avoidance will never be taught in schools because the government will lose billions of dollars in revenue from its high taxpaying working class!
Do you think they want a revolution?
Rich dad poor dad
@@Joel-ee4yh sorry my Dude, you wouldn't pay attention, don't place the rest of us whom don't have limited thinking in boxes.. And in case you're wondering, I have an Economic, Political Science and Math degree and I have my owj business, so yes everything you heard in this vídeo Im definitely taking advantage of it because its legal, you want to change then hop on to the entrepreneur ship and leave your slave job.
The two best things I did to significantly reduce my tax rate was: 1. Buy a house and rent out room - allows you to take a lot of deductions not to mention extra tax free income 2. Start a side business and push expenses/deductions to that side business. I am not rich nor wealthy. Anyone with a decent income can do at least one of these if not both.
1. ah yes it's very easy to just buy a house these days if you're aren't already wealthy 2. claiming a bunch of deductions you aren't supposed to take for your scrap selling business that you don't actually make a profit on is likely to get you audited and owe a TON of back taxes because the IRS now is more likely to go after auditing nonwealthy people than wealthy people because they're too stupid to realize where the money actually is
@@iceink I didn't say do anything not allowed in the tax code! Only do deductions that you belive would survive and audit, and of course work with a tax professional to do so.
@@LinxuSx we have two-tiered justice system in case you've been living under a rock for a few decades, just because something is illegal on paper doesn't mean a rich person can't get away with it or at least get a lighter punishment than if a poor person did the same thing
@@iceink I don't know why we're arguing about rich people. I was offering my input on what I've done, and I'm definitely not a rich person. Good luck in your crusade against rich people!
@@LinxuSx sorry but if you're buying out second homes and renting them out you're part of the problem, all landlords need to be abolished, they're parasites who provide nothing to society
One of my friends gets around paying taxes by buying tax free municipal bonds. However, the bonds cost $10,000 a piece but the interest from them is tax free. The thing is the more money you make, the more opportunities open up to shelter your income from paying taxes.
For those without 10k, online trading has muni bonds as a mutual fund. I've found these muni funds for PA & NY that give 2-4% returns. Additionally there is state tax benefits if you live in the state bond is for.
Financial education makes it so that someone earning 30k a year can eventually pay less taxes like warren buffet by doing what he does: buy stocks
The bond market factors the tax free aspect into the yield on those bonds. Thus, municipal bonds have a low yield. Your friend would be better off buying SP500 index funds and paying 15% capital gains.
Yes, but your friend already paid ordinary income taxes on the money he used to invest into the munis. That’s what people are missing when they get upset because the “wealthy” pay less in capital gains. Btw, he’s only saving taxes on the dividends. He will still have to pay capital gains taxes when he sells the munis / realizes the gains.
The laws are written in interests of those who can afford to corrupt politicians. My bad I meant who can hire lobbyists
This is one of those, "Don't hate the player, hate the game" kind of deals. If a rich person (or company) complies with the law in paying no income taxes, the problem isn't with that person (or company); the problem is the law.
Don't these companies lobby to have these lenient laws?
The only problem in the law is that different people are obliged to give different taxes for the same government services.
The problem is that if everyone was paying their fair share the middle and lower class families will be hit the hardest. So it's a damned if you do and damned if you don't kinda deal.
the problem is the wealthy and corporations strongly influence what the law is
Who paid for your phone and made the phone that gave you the ability to write this comment on KZhead? Your job and apple/Google? Higher taxes they'll pay you less, and that phone would cost more. Less taxes aren't necessarily a bad thing.
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hello! a total noob here, how did you get this informed on your picks, I'm looking to score big on the market now
to be honest its not entirely easy i lost so much while doing it by myself until I stumbled across Ramesh Vijay
rameshvijaytrading@@ gmail com;
+ 1 =5=8=5=6=6=6=1=3=3=1
above is his what'zap contact
I don't know who, but someone actually needs to hear this, you've got to stop saving all your money. Venture into investing some, if you really want financial stability
Beautifully said, I tell my folks these words everyday. It's good to save money but most people don't understand the market moves and tend to be misled in facts like this and always depend on money in the bank.
@Cesar Moreno Hey, this is a computer age. Peeps who aren't even traders make money from the crypto and forex markets ,how many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.
Very helpful, this is what I needed to hear today
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If you get mad at the Rich for doing this, you are missing the lesson.
Everyone is trying to avoid tax, the rich is just smarter at doing so. There are poor people who get paid half cash half check to avoid tax
@@anhdungp0506 umm unless you’re talking about a different country, getting paid in cash or check literally has zero bearings on tax liability. The only thing is that cash is harder to track. That’s not tax avoidance. That’s tax evasion. That’s like saying just “launder your money”, cause hiding cash income is illegal, even if you can get away with it. We’re talking here about legal ways to reduce taxes, which most average people can hardly accomplish. The fact is, whether fair or not, the wealthy have much more legal avenues and opportunities to reduce their taxes than average people. And, let’s face it, they have the money to higher the best tax experts to figure things out for them. Average people either lack access to such tax experts or are just ignorant about things and don’t get sound advice because they don’t know any better.
Two words - Tax plan 👍
What's the lesson
@@theseyi Nobody in any country can avoid government taxes. In my country, if you buy any product, for example a package of spaghettis, 50% of the price is taxes. The governments always get your money. It is not about accusing or pointing to who avoid taxes.
Tell me why this documentary came out yesterday, but based on the film quailty/filter/ film settings they used, I thought it came out in 2011
CNBC is too cheap to give a WFH/Home Office stipend
You know he is a great lawyer ⚖ when he rebrands a loophole as best practice 👏 👏 😁
loophole or best practice... it doesnt matter what you call it. Its legal.
It's not a loophole. It's smart.
I thought he was an accountant who works for Jackson Hewitt
As a landlord, when I deduct the $5000 yearly cost of having my apartments grass mowed, yes I get a tax deduction, but it is still money leaving my pocket. The money is then better managed by the lawn care service who hires employees than by government.
Just left dmv office. It shows how efficient government is in spending money. I felt like i was in homeless shelter not in worlds richest cities government office
And then complain why roads are broken, power failures are regular, mail service is down, and police giving up on your case as there is not enough officers After all lawn mowing is necessity making country run while these services is just government fluff
@@taith2 he is still contributing to society and the economy, a family now has $5k more a year to pay for rent, groceries etc plus the gas used to run the equipment which is federally taxed. The government could manage the money far better than they do to handle these other services.
silly, you need to set up your own lawn care business..... not money out of your pocket then.... and lawn mowers depreciate.....
In summary: 1.Stocks 2. Assets (real estate, cars etc) THE END
"If you wanna pay more taxes you can write a check to the IRS.." Yeah I can see that happening quite often.... 🤔
Im sure warren buffet does every year. He always says he wants to pay more. I'm sure he just sends an extra $10 billion
*treasury
Yea you have to throw someone in cage to get anything you want apparently.
That’s the point. They only want other people to pay more taxes, which makes them hypocrites
You simply have to know the difference between regular income and capital gains. It's really not that hard people!
You can easily lower your taxable income by just saving for retirement
It depends on what retirement saving plans you invest in. You’re also betting that tax rates will stay the same which is unlikely to occur with historically low tax rates.
@@rapfreak7797 invest in single stocks, not ETFs imo. way faster growth and can sell covered calls weekly for cash. do it all in a ROTH IRA.
Not true. You will be taxed later in retirement.
Only up to 4K per year for 19,500 saved.
No thanks cause you might not make to retirement
*I pray whoever read this will be successful, keep fighting for success, the rich stay rich by spending like the poor and investing while the poor stay poor by spending like the rich yet not investing, roar!!, invest, earn and be successful.*
Starting early is the best way of getting ahead to build wealth,investing remains the priority. Forex trading has plenty of opportunities to earn a decent payout,with the right skills and proper understanding of how the market works
I totally agree with you,Forex trading is the most profitable venture I ever invested in,I reached my goal of $500k yearly trade earnings, setting realistic goals is an essential part of trading
But successful people don't become that way over night,what most people see is a glance wealth,a great career,purpose is the result of hard work and hustle over time
@@jasonsylvester7934 When talking about crypto currency, I have come to understand that only a handful of people really understand its mechanics and make money of it.
Bot alert...
The people who get up very early to go to work and get home late in the evening are the ones getting screwed on taxes. The tax system in this country is unbelievable.
Maybe? If so it’s the folks in DC, they’ve been putting these laws together for more than 47 years... this has been going on for a long time!
That's because they worked harder in the past to get to where they are now, where they can relax lmao
That's why you should be spending every day you're working to put away as much money into investments as early and as much as you can. When your passive investments are large enough you can stop working and live off passive income alone. Less financial stress, less taxes, no working forever.
Sammy, the top executives get up early and work late. Extremely. I think what you meant are low paid workers with multiple jobs or who need overtime to make ends meet. You are correct. Amazingly, the politicians don’t even try to fix that. They just keep talking about making other people provide more for employees or they take more money from high earners. I can’t remember the last time policy was proposed to actually change how things work.
Then learn the game. America is fair, everyone can better their finances.
I love how they say “avoid” is called the tax code lol
Most people complain and complain about how the system doesn't treat them fairly and demand the wealthy pay their "fair" share of taxes. Those same people are the ones who completely steer clear of any tax planning and are the ones who sit on their couches, watch TV all day and run across a turbo tax ad in which turbo tax offers services to completely take "care" of their taxes. Your average person sitting there watching this advertisement doesn't even give it a second thought and spends extra money on a tax professional and continues to sit down and watch TV or party on the weekends instead of learning the ins and outs of tax planning that include numerous tax credits and deductions they could otherwise use to their advantage without the help of a professional, saving thousands of dollars, and potentially doing a better job than those Turbo tax professionals in reducing their tax liability to its fullest extent. Get your priorities straight and quit complaining about something that is 100% in your control. Choices and priorities are what separate the rich from the average person, not the IRS or capitalism/"system".
For a moment I read the title as how do rich avoid Texas.
which is also a smart thing to do
@@adude8424 lol rich are going Texas leaving crap California
@@phoneicad1887 All those people moving to Texas are hardcore liberals they will turn Texas into California 😂.
@@gvanys lol why you liberals are running from your paradise maybe being hypocrite is becoming dangerous for your California lol. If it happens there will be war.
@@phoneicad1887 lol would you still pay half of your money for tax hell no I would go somewhere else where we are not bound of taxes.
Raise Taxes on landlords? Raise Rents It's that simple. All taxes make their way down to the lowest members of society in the form of higher costs
Not the "poorest members".... All end consumers pay the price.
Not necessarily. You can do certain things to tax in a way that lowers rent. For example... Luxury apartments are all that are being built... That is because you can earn 4x the cost of that apartment. So the apartment complexes earn more money by leaving property empty. Tax the empty apartments, at different levels of course, under 10%? No taxes, 20% vacancy 10% of rent on empty apartments etc etc. giving a tax incentive to fill all apartments. Therefore drive rents down, while also increasing tax money.
if you're simple, then yes, that's how it works
@hepthegreat4005 the super rich are the ones buying up empty homes so there's no chance your smart ideas will enter the tax code. The rich buy the politicians
Ms. Wilson has some really valid points. Good take. It's important to note that the top 15% of earners in the US pay >76% of federal income tax revenue.
This is what people miss when they make the argument for a flat tax. The tax system right now is FAIR. The top 15% are also responsible for 75% of income (100 minus 15, with 100 being the person who made the least, and 1 being the person who made the most). So if 76% of the federal income tax revenue comes from 75% of the income for which fed tax revenue is derived, it is proportional. For a long time I was against the progressive tax system. It felt unfair. But if you sit and think about it in a pragmatic way like this it changes your perspective.
@@godofthecorn3011 I do hear your what you are saying. But the more complex the tax code is, the more likely it is for people to take advantage of it. So the argument is more so that it prevents corporate and ultra wealthy from being able to utilize the tax system to benefit them more than a regular American could
@@godofthecorn3011 I don't have a very strong opinion on this, but as far as the amount of federal income, if you take into account the significance of the worsening wealth divide/gap, it adds a bit more nuance. Where on that line should things change? I don't know. I see that there are some improvements to income in certain sectors recently, but also none in others. With the increase of automation of the workforce (need less workers), pushing more workers into the service sector, it is more difficult to find a well paying factory job or trade. There are so many other factors that influence this like the tipped wage (Only like $2.13 still to this day which is atrocious), the minimum wage still being where it is, the working conditions in many jobs, the proliferation of the 'gig worker,' which is more horrifying than most think. The numbers don't lie, in the US as of 2016, the top 1% own 40% of all wealth, the top 5% own 66% of all wealth, the bottom 90% own 21% (which is down from 33% in the 60s, this trend of decline increasing significantly in the last 2 decades) this has gotten significantly worse with the pandemic. The American dream of owning a home and car and being able to take care of a family off of a single income is dead. In the 60s and 70s you could do that, often with only a high school diploma. Is that a criticism of the income gap or the education system though? *shrug* a bit of both, with a multitude of other factors of course (all these problems have many causes, not just one, and so there is no such thing as a single directed fix either). Also, the decrease of benefits over the decades is very significant. A lot of benefits like health care coverage and pension is now taken out of your paycheck instead of being completely or almost completely covered by the company that you work for. The amount of income you get from easily accessible methods of investment like savings accounts have gone from 6-8% to .03% annual interest. On the other hand the interest rate has also dropped significantly, but that means we have an economy built on debt instead of wealth for the vast majority of the population. Should we blame someone in particular for this? Not really sure it is fair to place all the blame on the richest people, they are also participants in this broken system, but they also have more influence than most. Did you know that the IRS offered to make doing your taxes incredibly easy for people, but the tax preparation companies lobbied against it with really dumb arguments and trading favors to get it shot down? There is corruption everywhere in our government and the richest people have the money to buy off politicians to do what is best for them, instead of the general public. I'm cynical about it all, but I don't think I'm entirely wrong.
Thank you 🙏🏾☺️
@@Kiyometa Keep in mind the average home used to be half as big as it is now. Got to figure that into your lost American Dream scenario.
They are not loopholes they are tax deductions that are available to everyone who qualifies, if you don't use them thats your and not rich peoples fault!
I wish this piece discussed how the wealthy and corporations use their power to influence laws, like tax laws, to their own benefit
It doesn't help that our lovely folks in Congress are part of the wealthy.
Eliminate all loopholes, make taxation a simple flat percentage rate. no deductions, no brackets, just that tax. Less than a paragraph of information.
Sounds more like a “how to not get ripped off by the IRS.”
Not really. 99%+ of people won't be able to leverage them.
2:44 NO AUDIO?!? and 6:26 only left channel audio???
Even the captions are not placed correctly. I kinda need them sometimes if I don't understand the accent.
Yes, soldier
The irs/fbi dont want you to listen
All this does is explain how people avoid double taxation. - signed someone who owns multiple businesses
bruh..nice to see you here!
It also mentions, albeit briefly, that loans aren't taxable. That's one of the go-to ways to not pay taxes.
Careful.... you’re making sense again! That won’t go well in the comment section! ; )
,100%
You are disingenuous. Learn economics and learn how to read data. The world goes by numbers, not by your bias. I am HAPPY that Biden will fix the entire tax system to make it fairer. For too long, the 1% has rigged the entire economy and tax system for their benefit. Hopefully things will change soon.
My family is worth about $100 million, and we pay several million in taxes every year. It’s a lower percentage of net worth than many others pay, but a higher dollar amount. But everyone has different ideas about what is fair. Essentially it’s about minimizing taxable income
I agreed. Lower percentage doesn't mean less money
2:45 and 6:28 there is a sound problem when the lady starts talking and expaikibg things. In my JBL headset I can hear the sound only the right side while the left side just playing the background music. That's what I noticed. Thanks for the video!
It is only for a couple of seconds until the scene being changed but still I think that it worth to mention about.
Well, rules were made to be stretched like everything else in LIFE
2:44 wow she just jumped in my left ear
6:26 too
It’s pretty weird. Voice comes from left side if you are watching the video from before but doesn’t happen when you click the time
Hahah
Perfect timing on this video for us new AMC millionaires
Lol
You need to convert short term gains into long term gains too, and then move to a no income state before cashing out.
@@OmahaRiverDonkey I'm eyeing florida
You guys still didn't go broke?
Yep 2 million a few months ago is 14 million today I’m in Florida
Thank you for teaching us better financial reponsibility!
Corporate and oligarch know a million ways to minimize their taxes.
Because they're smart while average American watches the office and eating burger king.
Pretty sure it’s cause they can afford to pay tax planners/accountants/attorneys lmao
Because they're the ones writing the bills that get voted into law by the politicians they're buying out.
Wrong . Politicians give them million ways to evade tax
@@MrJonyyMD being smart does not allow you morally to avoid paying tax .
They actually DO pay a lot of taxes, they pay the most taxes.
That is true in the absolute amount of money, not in relation to their income. As stated at 0:25, the secretary of Warren Buffett pays higher taxes in relation to her income compared to Buffet himself. I don't think that's justified when hard working people have to struggle in many countries.
@@whocares2462 This is because she pays taxes on salary, while warren buffet pays taxes on stocks which is capital gains. And capital gains tax rate are always lower than normal tax rate. Its completely normal. Moreover if you habe a business you can claim write off for expenditure incurred while salaried people cant claim the same. There is nothing wrong in it.
Sure they pay the most taxes as a monetary amount, or state taxes or property taxes etc, but they might not pay the most federal income tax. Also, the rich have so many deductions which aren’t available to most people. Therefore proportionately or as a percentage of their total income/ gains they might not pay the most on taxes.
Thanks, I understand the reasons for it. But just because our system works this way doesn't mean it's fair. Why should work be taxed higher than capital gains? Are investments really more important to society than actual work? Or are investors simply more powerful than workers and therefore able to influence legislation? Plus, with shrinking wages it becomes increasingly hard for people for invest and build of other sources of income.
@@adirox7 just because it's normal doesn't mean it's right. Your essentially taxing a person more, who actually provides value and productivity to the economy. Than you are a investors in stocks who provides no value to society
Enjoyed the video, but is there any chance you can work on balancing the audio better? The changing audio volume/quality is quite noticeable when swapping between the people discussing this interview topic. Thanks!
Should be “How CNBC uses sensational headlines to make money”.
yep.
True
💯
There’s lot of ways avoid taxes in America and believe me you don’t have to be rich You just have to educated on tax exemptions
yeah but not paying 5 dollars in tax is nothing in comparison to 500 (Example)
This sort of logic equalizes someone just itemizing their deduction because they got a home to corporations paying no taxes and warren buffet paying lesser taxes than their secretaries. I guess poorly people are just suckers for wealthy, and may be saving a few pennies by paying 300$ to a tax attorney is all they can do
@@sonicblare Warren Buffett pay less tax rate not amount
Q: How the rich avoid paying taxes? A: By being rich.
Being *smart
@@pranshuanand4560 *trash
@@magk2524 working for your money means that you’re trash?
@@JasperShoes not paying taxes
@@magk2524 whoa? Tax evasion? BASED
Straight out of Rich Dad Poor Dad.
Yes sir , you know the rich dad vibes
Name the 4 Financial "Quadrants!" "Employee, Self Employed, Business Owner, Investor!" Each of us, need to ask, for each Action we take, to which of those 4 Quadrants does it take us to? Obviously, for each "Financial Action" but, more than that, it includes our Thinking, Reading, Learning, Connecting with People, what we watch, even how we live, eat, travel, etc! Lots to learn for us "School Smart, Money Not" folks! Takes time, Effort, planning, and changing! But it helps! When instead of your Credit "FICO Score" you think more of your "Ratings" at Dun & Bradstreet, and are they AAA, or AAb, you'll know you've moved to a new chapter!
We live in a democracy, but our policies are so heavily influenced by big money that we do have some characteristics of an oligarchy. Reducing one's stupendous wealth also reduces their power over legislation that will affect your life.
if we live in a democracy, aren't the "rich" the minority? the rich already pay more than they need to. we need them more than they need us.
@@codorin hahahaha
This isn’t a democracy it’s a republic. You should learn the difference
You don't live in a democracy. Do something the government don't like and the CIA will knock on your door
The IRS is not auditing tax returns of the top 1% they target low income earners. The most likely to get audited are those claiming earn income tax credit. This is rather unfortunate.
Source ?
There's nothing illegal with taking advantage of the rules.
@You Tube 🤢 🤮 Living by the Golden Rule gets one taken advantage of.
@You Tube To each, their own.
vomit that crap out fool.
@You Tube if your tax dollars go toward bombing children in Afghanistan does that make you feel like you did the right thing? Maybe keeping your hard earned money and spending it how you see fit is actually more moral???
Awesome and very Awesomeinsightful updates Well i will also say this here... Even as the world still experience slow recovery in terms of economic meltdown due to the recent Covid-19 outbreak, it is best advised to find another alternative to make good income.
The rich sees every economic crisis as the perfect time to start up an investment, and I believe this would be a good time to start up an investment.
The stock market has plenty of opportunities to earn a decent payouts, with the right skills and proper understanding of how the market works,
For me I would say investing in Bitcoin is the hardest decision I and my wife ever took because at some point we were running down and didn't know what to do anymore, thanks to my colleagues at work who introduced me to professional Mr Dimitri lius through his Instagram page
@Edafe Akpovo Does this Mr Dimitri lius do free consultation?, I will like to me him too.
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If you earn employment income you will pay the highest tax rates but if you are wealthy and can live off dividends and capital gains you will pay much lower tax rates. Corporations pay out dividends from after tax income as they are not tax deductible so the person receiving the dividends gets a tax credit to avoid double taxation for that type of income. I don't live in the US but that is the general concept.
Imagine the woke, institutional and anti-rich sentiment comments they expected us to type 😂
oh a tesla icon comment checks out as someone who imagines themselves as a temporarily embarrassed billionaire
r/usernamechecksout
So they basically told us how to avoid paying taxes…just do it then 🤷🏽♂️
Yea I'll bet you will never be able to do it, so you have absolutely no point. If it was that easy to do, everyone can just hire an accountant to do it.
@@dailyrant4068 do you have an IRA or 401k? Those investments are “tax avoidance schemes” quit crying like a baby and take some responsibility for your financial position.
@@dailyrant4068 File your own taxes and examine all the possible deductions. Every year, use a little more of them than the prior year. Over time, you will begin to understand how to keep more of your gains. And it adds up over time. It's not the easiest thing. And it's certainly not fun. But it is not all that difficult either. And as Patrick has said. Learn 401k and IRA from the start.
@@eric3434 I love when teens with zero knowledge in any tax law or investment/retirement areas try to tell people to look up things. Again, I'm on track to 2.5M when I retire, not sure about you. I've been maxing out my 401k since 2020. If you don't actually know tax and deductions, why are you giving advice on it? Because you read some gurus book or watched a youtube video?
@@dailyrant4068 I tried posting a reply with more info, but youtube keeps removing it. What is your 401k yearly contributions? Roth or Traditional? Yes i read many books, and I've watched youtube ever since youtube became a thing. What makes you think i don't understand taxes? I just spent another 3 weeks on my corp and personal taxes like i do every year. I'd say i am quite well versed.
"You can itemize on a schedule A" - Yes you can, however for 70% of the country, the Standard deduction is more advantageous. The 2017 tax law change improved that function for 50% of all tax payers, and capped property tax deductions. While it helped many, the significantly lower interest rates on mortgages effectively hindered the ability to benefit (from a tax perspective) from mortgage interest deduction. As a result, fewer people need a CPA to complete their taxes if you are taking a standard deduction.
So we should wait 40 more years for the wealth to start "trickling down?"
Anyone with a good-paying job, an investment portfolio, or bonus incentives in compensation benefits from “trickle down” economics. You just have to use your dull brain to see more than two inches in front of your face
@@bidmcms3 It’s easier for them to play the blame game and hope for infinity stimulus checks
@@bidmcms3 lol this guy got the kool aid. Money concentration is never a net positive
@@casinoroyal93 then why would we let the government take so much of our money? That’s the greatest concentration of wealth ever
@@casinoroyal93 we let government be the steward of our collective wealth because we believe it can marshal those concentrated resources more effectively than if they were dispersed. Some private citizens/companies are better at putting money to work too.
Is capital gains taxed when you take it out of your brokerage account or when you sell the stock?
Sell
Unfortunately when you sell the stock
@@AJ-rn5mt but if they start taxing capital gains taxes even before people sell, that's going to hurt everyone not just the rich. a lot of middle class people have money in stocks
@@kushal4956 u cant tax it . its not an income until you realize it .
In Sweden we have a special stock account where we pay a fraction of the national interest rate (0.1%) for any money or stock value you have in there (to trade stocks) quarterly, but no taxes when selling or withdrawing money. Govt. just gave up and made it easier for everyone to manage their money and retirement. So I pay less than Warren Buffet.
Moral of the story: Avoid taxes, don’t evade. Stay in school kids.
Also, get paid under the table as often as you can.
This needs to be constantly discussed
Fail to mention once you own a property you have to pay additional property taxes that goes up every year.
For us common folk: Try to avoid taxes the same way the 1% does. Study and play their same dirty games 🎮🙃 Stay sharp my friends 💯
Exactly. Instead of complaining which will change nothing.
1% pays more taxes than all of you combined.
Could you make a follow-up report on how the majority shareholders and top executives of Comcast Corporation, the multinational conglomerate that owns NBCUniversal Media, LLC and therefore CNBC, paid taxes in the last ten years please?
You can bet the executives at CNBC fall into this wretched category!
and fox news especially!
If everyone starts doing it, the rules will miraculously change to make rank and file people pay up once again while the actual "owner class" wiggles out of the new tax structure. The goal is to keep tax loopholes exclusive. If one or two people are allowed to cut the line, the line is still maintained. If the entire line figures out how to cut the line within the current rule structure, there ceases to be a line. They're only so brazen with telling everyone the "secrets" because they don't think many people will use those "secrets." But on the off chance a ground swell of people do, well whaddaya know a new tax structure. It's a shell game people. It's legalized con-artistry on a multi-generational and yes multi-society level. We're living in the matrix. Bait and switch everywhere. Charlatans up the whazoo.
I mean we won't know any of that until we try it so no need to get all conspiratorial.
@jghifiversveiws8729 but we do know it. Lobbying(buying out politicians) is common knowledge
So this is not a "rich people" problem. Its an "IRS" problem.
The tax code problem
Let's get rid of the federal income tax, then you wouldn't have anything to complain about.
If that happens, there would be no "United" States.
@@renegade9777 The States have not been united in a long time.
@@renegade9777 If it punishes blue/leftist voters I'm all for it.
You pay over 30% taxes in Sweden and the money you make above 62300 dollars a year you have to pay 55% How does that sound?
But the top 1% pay 50% of all income tax collected by the US government...
8:84 Spare me. Those loopholes aren't "best practices". They aren't even loopholes. They are tax exemptions the government has granted to specific individuals, companies, and industries because those specific individuals, companies, and industries lobbied for the exemptions or funded political campaigns to buy politicians
How? They can afford rich lawyers and accountants.
Yes and no and where have I seen you before?
or laws
Such as myself Allow me to introduce myself Gaybanks, Gaybanks Esquire
The audio on this video is so inconsistent. I'm constantly reducing and increasing volume to have a balanced sound.
They don't avoid paying taxes they follow the way politicians incentivize business growth, ie Real Estate, Investing, Capital Expansion, Buying equipment, etc. W-2 workers think their paycheck is an investment, Home is a liability not an asset. They don't buy stocks & only pay capital gains tax, ie maybe only 15% instead of a yearly tax rate of 35-50% w/ all taxes included, Social Security, State, Federal, Obama Care etc.
This shows how taxes are a scam, and the ones that can escape, do it. People actually think taxes are good for the economy.
I've never heard of anyone saying taxes are good for the economy. I've heard consumer over spending is good for the economy.
As an AMC stock holder I feel like I have to prepare for stuff like this. Mother of all short squeezes coming soon.
@rome If you know then you know
Wow I just checked my portfolio. AMC is blowing up!
Y’all been saying that since feb
@@azalex91 lets go!! 100k is the floor!!
Dumb
Please can anybody explain me how rich earn from insurances I listened whole video but I really don't understand that part and I am not from US. The part I am talking about is on 5:35.
Couldn't even make it past the halfway point. Listening to all those deductions made my head hurt. There's a reason why I leave stuff like this to my CPA.
How is the money received from a loan on a insurance plan income? You still have to pay it back
Because you are using that money in the same way you would if you got income from a job to pay for stuff.
@@wanderlustandsparkle4395 still you can take a loan anywhere and use it too. It's not an income
“ normal people” need to put in the time for financial knowledge. But they don’t make the effort to plan ahead
Even worse, they blame the rich for having financial knowledge, which can be evidently seen in some of the comment's replies.
The top 10% earners for 71% of US tax revenue. The problem isn’t enough ppl paying taxes. It’s bloated, ineffective, incompetent govt.
Tax Avoidance = Living by the rules
After corporate taxes and dividend taxes, my tax rate is over 50%. The reason why the rates are lower is because it gets taxed twice. We could be like Singapore, Switzerland or New Zealand and stop taxing capital gains at all.
Right, remove the major tax for the rich perfect solution
Well they are taxed less because most of their sources of income are based on risk. So if you take a risk on something you should be taxed less because you can lose money. Now the problem with this is that if the government makes laws to increase tax it will affect the average man(like always). Recent example: Uber eats tax, they shifted the tax on the consumer.
False. They already take advantage of risk (in form of losses) because they can deduct losses against gains. That's NOT the reason why they are taxed less. It's just the rates they set many years ago. There is no magic number here.
It's horrible. Regular people pay, while rich gets away
can anyone explain the part about getting a life insurance policy and getting a cash dividend?
It's amazing how people think they deserve Access to your hard earned money
Nobody meant you when they said wealthy, whats your net worth rich boy?
One can only try to understand an equal, judgement occurs from a pedestal 🎈
In India, there is a huge megacorp called Reliance who used to pay 0 in taxes by using all loopholes. Goverment changed many deductions and yet somehow they always were able to pay 0 ₹ smartly using all loopholes. Then indian goverment got fed up and started minimum alternate tax. According to minimum alternate tax, no matter how many deductions you use, you cannot pay less than some % of your profit in taxes. Now it's illegal to pay less than certain % of net profit In taxes.
if there's a legal rule, use it, don't blame the smart one for being smart.
Everyone should pay the same %. why should James pay 40% and tom pay 10%. in a word where everyone wants equity we should all pay the same. the more wealthy try to bring there tax bill down due to the fact the % is so high compared to everyone els.
James and tom did pay 40% tom just bought Apple stock instead of car
I’m taking notes 👁👄👁
Rich make a non-profit org that they donate and write themselves a tax write-off, then as president on said non-profit, that donated money pays them right back as a salary.
I have plenty of Money. Please let me know how to avoid paying taxes
Buy real estate :))
Ask Amazon how I bet they can give you advice knowing how they dont pay
i see you are a fan of defund the police
Go to the nearest museum and buy a few portraits
Yes, help us defund the police and the military.
I have heard about these procedures before. Good editorial on how these procedures are used. (:
You know the tax code is available at your local library. Or you can even buy books on how to save and invest your money. If you would just stop watching TV and start investing your time into learning how the tax code works, you could really stop worrying about how the rich avoid paying taxes and start learning how to become the rich.
It's more expensive to be an employee.
There’s a difference between a normal person being taxed and a corporation being taxed. Corporations sometimes don’t pay taxes because they promise to open factories in the US to bring jobs and things like that…
bring crappy jobs that don't pay people enough to live in the places they even work, let alone save money
USA if you wanna close the loopholes then do it. They'll all go to the carribbean 🙏🔥
That's proven to be false. If your logic is sound, why are there still so many ultra wealthy in high tax states such as New York?
So, what do we do? You're stating the problem, but You're not giving the solution
CNBC, please do a video on offshore tax havens, e.g. Singapore, Ireland, Netherlands
Can you share these 'Best Practices'?
Get your taxes done by a pro CPA. But only only worth it if your income is high, above 200k
401K, IRA, HSA, medical premiums if you have a lot of them (normally people over 80/ people with medical issues). When you pay taxes on sales of stocks/mutual funds held long term (over 1 year), the rate of those sales is long term capital gains which is a much lower rate than the standard rate, which is why you would not want to be a day trader. The best tax break is the standard deduction, which is the primary means of most earners to lower their tax liability. Google "tax credits" for ways to reduce your taxes while still using the standard deduction. Google "tax deductions" for ways to lower your taxes, only after you meet the standard deduction (normally the elderly as I said before). I hope that helps! 🍻
This is not the best time for anyone to be left out when going for digital assets....
Despite the economic crisis it's still wise to invest in Crypto currency
For real crypto is profitable Crypto is the new gold
I wanted to trade Crypto but got confused by the fluctuations in price
Yeah my first investment with Mr James Lawson Bryan earned me profit of over $25,530 US dollars ever since then he has been delivering
Trading crypto now will be very wise but trading without a professional is not
there is a nuance, taxes include pension contributions, which are essentially your money. therefore, it is incorrect to say that a billionaire and an ordinary worker pay different taxes, a billionaire does not need a pension.
*Why would anyone thumbs down this video, Rich people aren't watching videos on how to avoid to pay taxes on KZhead they can afford to hire people to to help them pay no taxes, so basically the only people who are thumbing down this video are poor people.*
This happens in a lot of societies/nations throughout history. When the rich stop paying taxes, it never ends up good for that society.
Oh, we reached the twilight a long time ago. The country is over whether we choose to acknowledge it or not, we just have to choose to make the the best of it.
French Revolution 2.0
The top 1% in the US pay 40% of all taxes though. I'd love to know what your definition of fair share is?
@@jeffreyherr9417 These people have absolutely no idea what they're talking about so there's no point in arguing with them. They are not aware of the objective fact that Individuals in the 1% which means people making 350,000 dollars a year and up pay the vast majority of taxes in this country. They're also unaware of the fact that these individuals employ every single one of us and have pretty much single handedly built this entire economy.
@@jeffreyherr9417 Just because they pay the most isn’t surprising. You know amazon got a federal tax rebate last year? Paid zero in federal taxes due to the 2017 Trump Cuts. Then theres all the lobbying to avoid being held responsible for any pollution and ect. Also example you make $350,000 you pay a 10 percent tax which is $35,000. Now of course you pay the lionshare of taxes. Doesn’t mean its the fair amount. Look up the first French Revolution, Western Rome falling, Byzantine Collapse in 1203, Mughal Empire. Taxes are essential to a state running. When that collapses the state struggles.