Politicians are People, too!
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sweatervest13
Active Member
sweat90lx
Member
Quote:
Originally Posted by bionicarm http:///t/392349/politicians-are-people-too#post_3483141
Want to know how the rich remain rich? Here's one way:
http://money.msn.com/personal-finance/article.aspx?post=05a79e37-ee48-4e26-af04-69b86d133120
I dont understand that. Sure he got a rate that very few can, but why pay even 1.05% interest on something he could have paid cash for.
Originally Posted by bionicarm http:///t/392349/politicians-are-people-too#post_3483141
Want to know how the rich remain rich? Here's one way:
http://money.msn.com/personal-finance/article.aspx?post=05a79e37-ee48-4e26-af04-69b86d133120
I dont understand that. Sure he got a rate that very few can, but why pay even 1.05% interest on something he could have paid cash for.
reefraff
Active Member
Quote:
Originally Posted by sweat90lx http:///t/392349/politicians-are-people-too#post_3483243
I dont understand that. Sure he got a rate that very few can, but why pay even 1.05% interest on something he could have paid cash for.
He can take the cash and throw it in a money market account which is 100 percent safe and triple that interest. He could buy AT&T stock and make over 5%
I have a cash back credit card. So far this year I've been paid a little over 500.00 for using the card to pay all my bills with a 28 day interest free loan every month. You don't have to be rich to take advantage of a good deal.
Originally Posted by sweat90lx http:///t/392349/politicians-are-people-too#post_3483243
I dont understand that. Sure he got a rate that very few can, but why pay even 1.05% interest on something he could have paid cash for.
He can take the cash and throw it in a money market account which is 100 percent safe and triple that interest. He could buy AT&T stock and make over 5%
I have a cash back credit card. So far this year I've been paid a little over 500.00 for using the card to pay all my bills with a 28 day interest free loan every month. You don't have to be rich to take advantage of a good deal.
bionicarm
Active Member
Quote:
Originally Posted by reefraff http:///t/392349/politicians-are-people-too#post_3483259
He can take the cash and throw it in a money market account which is 100 percent safe and triple that interest. He could buy AT&T stock and make over 5%
I have a cash back credit card. So far this year I've been paid a little over 500.00 for using the card to pay all my bills with a 28 day interest free loan every month. You don't have to be rich to take advantage of a good deal.
So go buy you a multi-million dollar home with your Discover cash back rewards. Oh wait...
Originally Posted by reefraff http:///t/392349/politicians-are-people-too#post_3483259
He can take the cash and throw it in a money market account which is 100 percent safe and triple that interest. He could buy AT&T stock and make over 5%
I have a cash back credit card. So far this year I've been paid a little over 500.00 for using the card to pay all my bills with a 28 day interest free loan every month. You don't have to be rich to take advantage of a good deal.
So go buy you a multi-million dollar home with your Discover cash back rewards. Oh wait...
bionicarm
Active Member
Quote:
Originally Posted by reefraff http:///t/392349/politicians-are-people-too#post_3483238
Here's the dirty little secret liberals don't want you to know. The rich need a vibrant middle class to buy their goods and services if they are to stay rich. Kinda blows the lid right off the Democrat party talking points.
Once you have the wealth, you don't necessarily need anyone to help you maintain it. It's called "wise investments". Snookie and The Kardashians have made their millions/billions duping a sector of the American people into watching their stupid reality shows. They can walk away from that today, and never work another day in their life and have a nice comfortable living. The only reason they'd need to continue working is greed. "I'm not satisfied with my 8,000 sq. ft house, three Benzes, and Cessna Citation, I also want a 10,000 sq, ft, hone in the Caymans, four Bentley's, and a Gulfstream." The middle-class Americans whose "wise investments" consists of getting $500 for the year on their Discover Cash Back cards, can splurge that money on a new dishwasher or weekend getaway to the beach (if they drive). Don't think they can retire anytime soon on that cash cow.
Originally Posted by reefraff http:///t/392349/politicians-are-people-too#post_3483238
Here's the dirty little secret liberals don't want you to know. The rich need a vibrant middle class to buy their goods and services if they are to stay rich. Kinda blows the lid right off the Democrat party talking points.
Once you have the wealth, you don't necessarily need anyone to help you maintain it. It's called "wise investments". Snookie and The Kardashians have made their millions/billions duping a sector of the American people into watching their stupid reality shows. They can walk away from that today, and never work another day in their life and have a nice comfortable living. The only reason they'd need to continue working is greed. "I'm not satisfied with my 8,000 sq. ft house, three Benzes, and Cessna Citation, I also want a 10,000 sq, ft, hone in the Caymans, four Bentley's, and a Gulfstream." The middle-class Americans whose "wise investments" consists of getting $500 for the year on their Discover Cash Back cards, can splurge that money on a new dishwasher or weekend getaway to the beach (if they drive). Don't think they can retire anytime soon on that cash cow.
darthtang aw
Active Member
Once you have the wealth, you don't necessarily need anyone to help you maintain it. It's called "wise investments". Snookie and The Kardashians have made their millions/billions duping a sector of the American people into watching their stupid reality shows. They can walk away from that today, and never work another day in their life and have a nice comfortable living. The only reason they'd need to continue working is greed. "I'm not satisfied with my 8,000 sq. ft house, three Benzes, and Cessna Citation, I also want a 10,000 sq, ft, hone in the Caymans, four Bentley's, and a Gulfstream." The middle-class Americans whose "wise investments" consists of getting $500 for the year on their Discover Cash Back cards, can splurge that money on a new dishwasher or weekend getaway to the beach (if they drive). Don't think they can retire anytime soon on that cash cow.
LMAO...seriously? It is easy to lose your wealth...without even spending 3/4 of it. Lets look at how lottery winners always go broke.
Are you kind of stunned when you see headlines talking about how people who won big lottery prizes in the past are now broke? Are you like most of us and think, “How can anyone blow through what seems like an un-spendable amount of money?”
1 millionWell let’s take a look at some numbers. The jackpot for the March 30 drawing was a whopping $656 million. There were apparently three winners. Each could choose to receive an annuity that would pay out about $219 million over 26 years. However if a winner selects the cash option (‘give me the $$ now, not over 26 years’), he or she would collect about $128 million before taxes. The key words are "before taxes."
The Tax Man Cometh
So now let’s take a look at what happens to those numbers when the tax man at various levels get involved. Starting at the top:
Federal Income Tax
Lotto jackpots are fully taxable. And huge jackpots are currently taxed at a maximum federal rate of 35%. So the winner of $128 million will owe the Internal Revenue Service about $45 million. That leaves about $83 million.
State Income Tax
Say a new Mega Millionaire is "unlucky" enough to live in a state with a personal income tax. In most states, the tax rates on high-income individuals range from 5% to 10%. So for the purposes of this discussion let’s use the rate of 7%. Our winner of $128 million will owe the friendly state tax collector about $9 million. That leaves about $74 million.
Now let’s face it, one of the first things that comes to mind now is ‘I can’t spend that much money in a life-time!” Plus all of us are going to want to share our new found wealth. Well, guess what? One of the big reasons why many lotto winners wind up bankrupt is failure to realize that the tax man is going to get his, and there are no tax loop-holes on that.
Generosity Is Expensive
The second big ‘gotcha’ which really sneaks up on a lot of lottery winners is the costs of being generous with their winnings. You, like most people, would probably decide you want to help out family and loved ones by ‘spreading the wealth’. Let’s take a look at some ‘reasonable’ assumptions.
Federal Gift Tax
Despite having already lost $54 million to the IRS and the state tax collector, your tax situation can quickly deteriorate even further if you share your newfound wealth generously with loved ones. That's because you'll owe a 35% federal gift tax on money given away over the $5.12 million gift tax exemption. So if you say “I have $74 million, I’ll give away $25 million to siblings, children, parents, aunts, uncles, and friends”, the gift tax bill would be about $7 million [($25 million - $5.12 million exemption) x 35% = $6.958 million].
Plus let’s say you give away another $25 million to your grandkids. You will now get socked with a 35% generation-skipping transfer tax (GSTT) on gifts in excess of the $5.12 million GSTT exemption. Worse yet, the GSTT is on top of the gift tax. The gift tax on the gifts to your grandchildren is about $9 million ($25 million x 35% = $8.75 million), and the GSTT is about another $7 million [($25 million - $5.12 million GSTT exemption) x 35% = $6.958 million].
Bottom line: you owe $77 million in taxes and you've given away $50 million to loved ones. Guess what? You only have $1 million left for yourself ($128 million - $77 million - $50 million = $1 million). Oops! So another big reason why some lotto winners wind up bankrupt is failure to understand the gift tax rules before it's too late.
So Play It Cool and Hang On To Your Money?
Now let's assume you don't give away any of your $128 million. You just pay the $54 million in income taxes and break even for the rest of your life, dying with a cool $74 million.
Federal Estate Tax
If you kick the bucket this year, your estate will owe federal estate tax equal to 35% of the excess over the $5.12 million exemption. That would amount to about $26 million [($74 million - $5.12 million exemption) x 35% = $25.9 million]. Your heirs would get $48 million (nothing to sneeze at), but $80 million was lost to taxes. That's a whooping 62.5% of what you started with. Ouch!
State Estate Tax
We're not done yet. If you live in one of the 22 states with a state death tax, your estate could be whittled down even more. The tax hits just keep on coming!
And It Could Get Even Worse
Unless Congress takes action and the president (whoever he is at the time) approves, the maximum federal income tax rate for 2013 and beyond will go up to 39.6% (up from the current 35%). And, the maximum federal gift and estate tax rate will be 55% (up from the current 35%). Plus the gift and estate tax exemptions will be only $1 million (versus the current $5.12 million). If these changes come to pass, the tax hits on future Mega Millionaires will be far bigger than what I've shown here.
Feel warm and fuzzy now?
LMAO...seriously? It is easy to lose your wealth...without even spending 3/4 of it. Lets look at how lottery winners always go broke.
Are you kind of stunned when you see headlines talking about how people who won big lottery prizes in the past are now broke? Are you like most of us and think, “How can anyone blow through what seems like an un-spendable amount of money?”
1 millionWell let’s take a look at some numbers. The jackpot for the March 30 drawing was a whopping $656 million. There were apparently three winners. Each could choose to receive an annuity that would pay out about $219 million over 26 years. However if a winner selects the cash option (‘give me the $$ now, not over 26 years’), he or she would collect about $128 million before taxes. The key words are "before taxes."
The Tax Man Cometh
So now let’s take a look at what happens to those numbers when the tax man at various levels get involved. Starting at the top:
Federal Income Tax
Lotto jackpots are fully taxable. And huge jackpots are currently taxed at a maximum federal rate of 35%. So the winner of $128 million will owe the Internal Revenue Service about $45 million. That leaves about $83 million.
State Income Tax
Say a new Mega Millionaire is "unlucky" enough to live in a state with a personal income tax. In most states, the tax rates on high-income individuals range from 5% to 10%. So for the purposes of this discussion let’s use the rate of 7%. Our winner of $128 million will owe the friendly state tax collector about $9 million. That leaves about $74 million.
Now let’s face it, one of the first things that comes to mind now is ‘I can’t spend that much money in a life-time!” Plus all of us are going to want to share our new found wealth. Well, guess what? One of the big reasons why many lotto winners wind up bankrupt is failure to realize that the tax man is going to get his, and there are no tax loop-holes on that.
Generosity Is Expensive
The second big ‘gotcha’ which really sneaks up on a lot of lottery winners is the costs of being generous with their winnings. You, like most people, would probably decide you want to help out family and loved ones by ‘spreading the wealth’. Let’s take a look at some ‘reasonable’ assumptions.
Federal Gift Tax
Despite having already lost $54 million to the IRS and the state tax collector, your tax situation can quickly deteriorate even further if you share your newfound wealth generously with loved ones. That's because you'll owe a 35% federal gift tax on money given away over the $5.12 million gift tax exemption. So if you say “I have $74 million, I’ll give away $25 million to siblings, children, parents, aunts, uncles, and friends”, the gift tax bill would be about $7 million [($25 million - $5.12 million exemption) x 35% = $6.958 million].
Plus let’s say you give away another $25 million to your grandkids. You will now get socked with a 35% generation-skipping transfer tax (GSTT) on gifts in excess of the $5.12 million GSTT exemption. Worse yet, the GSTT is on top of the gift tax. The gift tax on the gifts to your grandchildren is about $9 million ($25 million x 35% = $8.75 million), and the GSTT is about another $7 million [($25 million - $5.12 million GSTT exemption) x 35% = $6.958 million].
Bottom line: you owe $77 million in taxes and you've given away $50 million to loved ones. Guess what? You only have $1 million left for yourself ($128 million - $77 million - $50 million = $1 million). Oops! So another big reason why some lotto winners wind up bankrupt is failure to understand the gift tax rules before it's too late.
So Play It Cool and Hang On To Your Money?
Now let's assume you don't give away any of your $128 million. You just pay the $54 million in income taxes and break even for the rest of your life, dying with a cool $74 million.
Federal Estate Tax
If you kick the bucket this year, your estate will owe federal estate tax equal to 35% of the excess over the $5.12 million exemption. That would amount to about $26 million [($74 million - $5.12 million exemption) x 35% = $25.9 million]. Your heirs would get $48 million (nothing to sneeze at), but $80 million was lost to taxes. That's a whooping 62.5% of what you started with. Ouch!
State Estate Tax
We're not done yet. If you live in one of the 22 states with a state death tax, your estate could be whittled down even more. The tax hits just keep on coming!
And It Could Get Even Worse
Unless Congress takes action and the president (whoever he is at the time) approves, the maximum federal income tax rate for 2013 and beyond will go up to 39.6% (up from the current 35%). And, the maximum federal gift and estate tax rate will be 55% (up from the current 35%). Plus the gift and estate tax exemptions will be only $1 million (versus the current $5.12 million). If these changes come to pass, the tax hits on future Mega Millionaires will be far bigger than what I've shown here.
Feel warm and fuzzy now?
bionicarm
Active Member
Quote:
Originally Posted by Darthtang AW http:///t/392349/politicians-are-people-too#post_3483314
LMAO...seriously? It is easy to lose your wealth...without even spending 3/4 of it. Lets look at how lottery winners always go broke.
Are you kind of stunned when you see headlines talking about how people who won big lottery prizes in the past are now broke? Are you like most of us and think, “How can anyone blow through what seems like an un-spendable amount of money?”
1 millionWell let’s take a look at some numbers. The jackpot for the March 30 drawing was a whopping $656 million. There were apparently three winners. Each could choose to receive an annuity that would pay out about $219 million over 26 years. However if a winner selects the cash option (‘give me the $$ now, not over 26 years’), he or she would collect about $128 million before taxes. The key words are "before taxes."
The Tax Man Cometh
So now let’s take a look at what happens to those numbers when the tax man at various levels get involved. Starting at the top:
Federal Income Tax
Lotto jackpots are fully taxable. And huge jackpots are currently taxed at a maximum federal rate of 35%. So the winner of $128 million will owe the Internal Revenue Service about $45 million. That leaves about $83 million.
State Income Tax
Say a new Mega Millionaire is "unlucky" enough to live in a state with a personal income tax. In most states, the tax rates on high-income individuals range from 5% to 10%. So for the purposes of this discussion let’s use the rate of 7%. Our winner of $128 million will owe the friendly state tax collector about $9 million. That leaves about $74 million.
Now let’s face it, one of the first things that comes to mind now is ‘I can’t spend that much money in a life-time!” Plus all of us are going to want to share our new found wealth. Well, guess what? One of the big reasons why many lotto winners wind up bankrupt is failure to realize that the tax man is going to get his, and there are no tax loop-holes on that.
Generosity Is Expensive
The second big ‘gotcha’ which really sneaks up on a lot of lottery winners is the costs of being generous with their winnings. You, like most people, would probably decide you want to help out family and loved ones by ‘spreading the wealth’. Let’s take a look at some ‘reasonable’ assumptions.
Federal Gift Tax
Despite having already lost $54 million to the IRS and the state tax collector, your tax situation can quickly deteriorate even further if you share your newfound wealth generously with loved ones. That's because you'll owe a 35% federal gift tax on money given away over the $5.12 million gift tax exemption. So if you say “I have $74 million, I’ll give away $25 million to siblings, children, parents, aunts, uncles, and friends”, the gift tax bill would be about $7 million [($25 million - $5.12 million exemption) x 35% = $6.958 million].
Plus let’s say you give away another $25 million to your grandkids. You will now get socked with a 35% generation-skipping transfer tax (GSTT) on gifts in excess of the $5.12 million GSTT exemption. Worse yet, the GSTT is on top of the gift tax. The gift tax on the gifts to your grandchildren is about $9 million ($25 million x 35% = $8.75 million), and the GSTT is about another $7 million [($25 million - $5.12 million GSTT exemption) x 35% = $6.958 million].
Bottom line: you owe $77 million in taxes and you've given away $50 million to loved ones. Guess what? You only have $1 million left for yourself ($128 million - $77 million - $50 million = $1 million). Oops! So another big reason why some lotto winners wind up bankrupt is failure to understand the gift tax rules before it's too late.
So Play It Cool and Hang On To Your Money?
Now let's assume you don't give away any of your $128 million. You just pay the $54 million in income taxes and break even for the rest of your life, dying with a cool $74 million.
Federal Estate Tax
If you kick the bucket this year, your estate will owe federal estate tax equal to 35% of the excess over the $5.12 million exemption. That would amount to about $26 million [($74 million - $5.12 million exemption) x 35% = $25.9 million]. Your heirs would get $48 million (nothing to sneeze at), but $80 million was lost to taxes. That's a whooping 62.5% of what you started with. Ouch!
State Estate Tax
We're not done yet. If you live in one of the 22 states with a state death tax, your estate could be whittled down even more. The tax hits just keep on coming!
And It Could Get Even Worse
Unless Congress takes action and the president (whoever he is at the time) approves, the maximum federal income tax rate for 2013 and beyond will go up to 39.6% (up from the current 35%). And, the maximum federal gift and estate tax rate will be 55% (up from the current 35%). Plus the gift and estate tax exemptions will be only $1 million (versus the current $5.12 million). If these changes come to pass, the tax hits on future Mega Millionaires will be far bigger than what I've shown here.
Feel warm and fuzzy now?
No tax loopholes for that? Seriously? Why do you think Romney has remained so wealthy? Try Cayman Islands. Try tax-deferred investments. There's a multitude of ways for the wealthy to "hide" their money that's not available to the common man. You'd be amazed how inventive some of these accountants get, and find those little holes in the tax code. Why do you think they tell you to talk to a financial advisor before going to pickup that big check at the lottery office?
Take the guy who ends up with the paltry $83 million after taxes on that lottery win. He could stick that money into a Mutual Fund that earns 2% (split it up into mutliple accounts and get 4%?). At 2%, he earns $1,66 MILLION. Even after taxes, he's got what, $500,000 to live on, each year, every year for the rest of his life? He hasn't even put a dent in the principle.
Correct me if I'm wrong, but once that money is taxed, it can't be taxed again unless you invest it (i.e. Mutual Funds), and you are taxed on the interest you earn on that money. If someone has the ability to blow that much money in their lifetime, then they are a fool, don't know how to invest, or as I stated about those who are already rich, they let greed take the better of them.
Give me that kind of money, and I'll show you what "warm and fuzzy" is. You apparently have no perception of money. You make $48 million sound like pocket change, and complain that the mean old government took a big hit out of your earnings so you couldn't try and spend every dime on anything imaginable. I persoanlly live a more humble life. You spend $2 on a lottery ticket, make $128 million dollars for standing in line 5 minutes to buy it, and you're mad because you weren't able to keep the entire $128 million. Brother.
If you're scenario is so inevitable, why aren't there more millionaires and billionaires living on the street today? Because they know how to invest their money to avoid the evil tax man.
Originally Posted by Darthtang AW http:///t/392349/politicians-are-people-too#post_3483314
LMAO...seriously? It is easy to lose your wealth...without even spending 3/4 of it. Lets look at how lottery winners always go broke.
Are you kind of stunned when you see headlines talking about how people who won big lottery prizes in the past are now broke? Are you like most of us and think, “How can anyone blow through what seems like an un-spendable amount of money?”
1 millionWell let’s take a look at some numbers. The jackpot for the March 30 drawing was a whopping $656 million. There were apparently three winners. Each could choose to receive an annuity that would pay out about $219 million over 26 years. However if a winner selects the cash option (‘give me the $$ now, not over 26 years’), he or she would collect about $128 million before taxes. The key words are "before taxes."
The Tax Man Cometh
So now let’s take a look at what happens to those numbers when the tax man at various levels get involved. Starting at the top:
Federal Income Tax
Lotto jackpots are fully taxable. And huge jackpots are currently taxed at a maximum federal rate of 35%. So the winner of $128 million will owe the Internal Revenue Service about $45 million. That leaves about $83 million.
State Income Tax
Say a new Mega Millionaire is "unlucky" enough to live in a state with a personal income tax. In most states, the tax rates on high-income individuals range from 5% to 10%. So for the purposes of this discussion let’s use the rate of 7%. Our winner of $128 million will owe the friendly state tax collector about $9 million. That leaves about $74 million.
Now let’s face it, one of the first things that comes to mind now is ‘I can’t spend that much money in a life-time!” Plus all of us are going to want to share our new found wealth. Well, guess what? One of the big reasons why many lotto winners wind up bankrupt is failure to realize that the tax man is going to get his, and there are no tax loop-holes on that.
Generosity Is Expensive
The second big ‘gotcha’ which really sneaks up on a lot of lottery winners is the costs of being generous with their winnings. You, like most people, would probably decide you want to help out family and loved ones by ‘spreading the wealth’. Let’s take a look at some ‘reasonable’ assumptions.
Federal Gift Tax
Despite having already lost $54 million to the IRS and the state tax collector, your tax situation can quickly deteriorate even further if you share your newfound wealth generously with loved ones. That's because you'll owe a 35% federal gift tax on money given away over the $5.12 million gift tax exemption. So if you say “I have $74 million, I’ll give away $25 million to siblings, children, parents, aunts, uncles, and friends”, the gift tax bill would be about $7 million [($25 million - $5.12 million exemption) x 35% = $6.958 million].
Plus let’s say you give away another $25 million to your grandkids. You will now get socked with a 35% generation-skipping transfer tax (GSTT) on gifts in excess of the $5.12 million GSTT exemption. Worse yet, the GSTT is on top of the gift tax. The gift tax on the gifts to your grandchildren is about $9 million ($25 million x 35% = $8.75 million), and the GSTT is about another $7 million [($25 million - $5.12 million GSTT exemption) x 35% = $6.958 million].
Bottom line: you owe $77 million in taxes and you've given away $50 million to loved ones. Guess what? You only have $1 million left for yourself ($128 million - $77 million - $50 million = $1 million). Oops! So another big reason why some lotto winners wind up bankrupt is failure to understand the gift tax rules before it's too late.
So Play It Cool and Hang On To Your Money?
Now let's assume you don't give away any of your $128 million. You just pay the $54 million in income taxes and break even for the rest of your life, dying with a cool $74 million.
Federal Estate Tax
If you kick the bucket this year, your estate will owe federal estate tax equal to 35% of the excess over the $5.12 million exemption. That would amount to about $26 million [($74 million - $5.12 million exemption) x 35% = $25.9 million]. Your heirs would get $48 million (nothing to sneeze at), but $80 million was lost to taxes. That's a whooping 62.5% of what you started with. Ouch!
State Estate Tax
We're not done yet. If you live in one of the 22 states with a state death tax, your estate could be whittled down even more. The tax hits just keep on coming!
And It Could Get Even Worse
Unless Congress takes action and the president (whoever he is at the time) approves, the maximum federal income tax rate for 2013 and beyond will go up to 39.6% (up from the current 35%). And, the maximum federal gift and estate tax rate will be 55% (up from the current 35%). Plus the gift and estate tax exemptions will be only $1 million (versus the current $5.12 million). If these changes come to pass, the tax hits on future Mega Millionaires will be far bigger than what I've shown here.
Feel warm and fuzzy now?
No tax loopholes for that? Seriously? Why do you think Romney has remained so wealthy? Try Cayman Islands. Try tax-deferred investments. There's a multitude of ways for the wealthy to "hide" their money that's not available to the common man. You'd be amazed how inventive some of these accountants get, and find those little holes in the tax code. Why do you think they tell you to talk to a financial advisor before going to pickup that big check at the lottery office?
Take the guy who ends up with the paltry $83 million after taxes on that lottery win. He could stick that money into a Mutual Fund that earns 2% (split it up into mutliple accounts and get 4%?). At 2%, he earns $1,66 MILLION. Even after taxes, he's got what, $500,000 to live on, each year, every year for the rest of his life? He hasn't even put a dent in the principle.
Correct me if I'm wrong, but once that money is taxed, it can't be taxed again unless you invest it (i.e. Mutual Funds), and you are taxed on the interest you earn on that money. If someone has the ability to blow that much money in their lifetime, then they are a fool, don't know how to invest, or as I stated about those who are already rich, they let greed take the better of them.
Give me that kind of money, and I'll show you what "warm and fuzzy" is. You apparently have no perception of money. You make $48 million sound like pocket change, and complain that the mean old government took a big hit out of your earnings so you couldn't try and spend every dime on anything imaginable. I persoanlly live a more humble life. You spend $2 on a lottery ticket, make $128 million dollars for standing in line 5 minutes to buy it, and you're mad because you weren't able to keep the entire $128 million. Brother.
If you're scenario is so inevitable, why aren't there more millionaires and billionaires living on the street today? Because they know how to invest their money to avoid the evil tax man.
darthtang aw
Active Member
No tax loopholes for that? Seriously? Why do you think Romney has remained so wealthy? Try Cayman Islands. Try tax-deferred investments. There's a multitude of ways for the wealthy to "hide" their money that's not available to the common man. You'd be amazed how inventive some of these accountants get, and find those little holes in the tax code. Why do you think they tell you to talk to a financial advisor before going to pickup that big check at the lottery office?
Take the guy who ends up with the paltry $83 million after taxes on that lottery win. He could stick that money into a Mutual Fund that earns 2% (split it up into mutliple accounts and get 4%?). At 2%, he earns $1,66 MILLION. Even after taxes, he's got what, $500,000 to live on, each year, every year for the rest of his life? He hasn't even put a dent in the principle.
Correct me if I'm wrong, but once that money is taxed, it can't be taxed again unless you invest it (i.e. Mutual Funds), and you are taxed on the interest you earn on that money. If someone has the ability to blow that much money in their lifetime, then they are a fool, don't know how to invest, or as I stated about those who are already rich, they let greed take the better of them.
Give me that kind of money, and I'll show you what "warm and fuzzy" is. You apparently have no perception of money. You make $48 million sound like pocket change, and complain that the mean old government took a big hit out of your earnings so you couldn't try and spend every dime on anything imaginable. I persoanlly live a more humble life. You spend $2 on a lottery ticket, make $128 million dollars for standing in line 5 minutes to buy it, and you're mad because you weren't able to keep the entire $128 million. Brother.
If you're scenario is so inevitable, why aren't there more millionaires and billionaires living on the street today? Because they know how to invest their money to avoid the evil tax man.
I just gave a simple scenario. I didn't post an opinion on the aspect. Just pointed out how it can easily be done.It has happened, countless times.
Edit: The money can be taxed again, depending on how it is spent.........We get taxed when we get paid, and we get taxed when we spend our payment..
Take the guy who ends up with the paltry $83 million after taxes on that lottery win. He could stick that money into a Mutual Fund that earns 2% (split it up into mutliple accounts and get 4%?). At 2%, he earns $1,66 MILLION. Even after taxes, he's got what, $500,000 to live on, each year, every year for the rest of his life? He hasn't even put a dent in the principle.
Correct me if I'm wrong, but once that money is taxed, it can't be taxed again unless you invest it (i.e. Mutual Funds), and you are taxed on the interest you earn on that money. If someone has the ability to blow that much money in their lifetime, then they are a fool, don't know how to invest, or as I stated about those who are already rich, they let greed take the better of them.
Give me that kind of money, and I'll show you what "warm and fuzzy" is. You apparently have no perception of money. You make $48 million sound like pocket change, and complain that the mean old government took a big hit out of your earnings so you couldn't try and spend every dime on anything imaginable. I persoanlly live a more humble life. You spend $2 on a lottery ticket, make $128 million dollars for standing in line 5 minutes to buy it, and you're mad because you weren't able to keep the entire $128 million. Brother.
If you're scenario is so inevitable, why aren't there more millionaires and billionaires living on the street today? Because they know how to invest their money to avoid the evil tax man.
I just gave a simple scenario. I didn't post an opinion on the aspect. Just pointed out how it can easily be done.It has happened, countless times.
Edit: The money can be taxed again, depending on how it is spent.........We get taxed when we get paid, and we get taxed when we spend our payment..
bionicarm
Active Member
Quote:
Originally Posted by Darthtang AW http:///t/392349/politicians-are-people-too#post_3483331
I just gave a simple scenario. I didn't post an opinion on the aspect. Just pointed out how it can easily be done.It has happened, countless times.
Edit: The money can be taxed again, depending on how it is spent.........We get taxed when we get paid, and we get taxed when we spend our payment..
I'm sure it has. That's what greed does to a person. Not content with what they have, so they have to have more. Used to live a comfortable life on just $50K/year, win $186 million, pay $90 million or more in taxes, but the remaining $80 million or so isn't enough.
So how does someone whoi has $80 million in their pocket (free cash) still depend on the middle class to allow him to keep that $80 million, or make even more on top of it? Someone with as little as $1 million can stick that money in a simple interest-earning account, and make more in interest alone than a person who works a minimum wage job 40 hours per week. And they still have that $1 million at the end of the day. Man, being rich really sucks.
Originally Posted by Darthtang AW http:///t/392349/politicians-are-people-too#post_3483331
I just gave a simple scenario. I didn't post an opinion on the aspect. Just pointed out how it can easily be done.It has happened, countless times.
Edit: The money can be taxed again, depending on how it is spent.........We get taxed when we get paid, and we get taxed when we spend our payment..
I'm sure it has. That's what greed does to a person. Not content with what they have, so they have to have more. Used to live a comfortable life on just $50K/year, win $186 million, pay $90 million or more in taxes, but the remaining $80 million or so isn't enough.
So how does someone whoi has $80 million in their pocket (free cash) still depend on the middle class to allow him to keep that $80 million, or make even more on top of it? Someone with as little as $1 million can stick that money in a simple interest-earning account, and make more in interest alone than a person who works a minimum wage job 40 hours per week. And they still have that $1 million at the end of the day. Man, being rich really sucks.
darthtang aw
Active Member
I'm sure it has. That's what greed does to a person. Not content with what they have, so they have to have more. Used to live a comfortable life on just $50K/year, win $186 million, pay $90 million or more in taxes, but the remaining $80 million or so isn't enough.
So how does someone whoi has $80 million in their pocket (free cash) still depend on the middle class to allow him to keep that $80 million, or make even more on top of it? Someone with as little as $1 million can stick that money in a simple interest-earning account, and make more in interest alone than a person who works a minimum wage job 40 hours per week. And they still have that $1 million at the end of the day. Man, being rich really sucks.
How does sticking that money in a simple interest earning account help the economy, create jobs, or help your neighbor?
http://blogs.wsj.com/wealth/2011/04/15/irelands-former-richest-man-loses-fortune/
That guys greed employeed a lot of people, enhanced the lives of a lot of people.
What is your business worth today? Could you not just sell it and live off the interest of a similar account? Why don't you do this?
So how does someone whoi has $80 million in their pocket (free cash) still depend on the middle class to allow him to keep that $80 million, or make even more on top of it? Someone with as little as $1 million can stick that money in a simple interest-earning account, and make more in interest alone than a person who works a minimum wage job 40 hours per week. And they still have that $1 million at the end of the day. Man, being rich really sucks.
How does sticking that money in a simple interest earning account help the economy, create jobs, or help your neighbor?
http://blogs.wsj.com/wealth/2011/04/15/irelands-former-richest-man-loses-fortune/
That guys greed employeed a lot of people, enhanced the lives of a lot of people.
What is your business worth today? Could you not just sell it and live off the interest of a similar account? Why don't you do this?
reefraff
Active Member
Quote:
Originally Posted by bionicarm http:///t/392349/politicians-are-people-too#post_3483272
So go buy you a multi-million dollar home with your Discover cash back rewards. Oh wait...
Those who put a lot at risk get more reward. Deal with it.
Originally Posted by bionicarm http:///t/392349/politicians-are-people-too#post_3483272
So go buy you a multi-million dollar home with your Discover cash back rewards. Oh wait...
Those who put a lot at risk get more reward. Deal with it.
reefraff
Active Member
Quote:
Originally Posted by bionicarm http:///t/392349/politicians-are-people-too#post_3483274
Once you have the wealth, you don't necessarily need anyone to help you maintain it. It's called "wise investments". Snookie and The Kardashians have made their millions/billions duping a sector of the American people into watching their stupid reality shows. They can walk away from that today, and never work another day in their life and have a nice comfortable living. The only reason they'd need to continue working is greed. "I'm not satisfied with my 8,000 sq. ft house, three Benzes, and Cessna Citation, I also want a 10,000 sq, ft, hone in the Caymans, four Bentley's, and a Gulfstream." The middle-class Americans whose "wise investments" consists of getting $500 for the year on their Discover Cash Back cards, can splurge that money on a new dishwasher or weekend getaway to the beach (if they drive). Don't think they can retire anytime soon on that cash cow.
Yeah, a grand or so back on the Chase card isn't earth shattering but I have managed to quadruple my stock investments since 2005
Originally Posted by bionicarm http:///t/392349/politicians-are-people-too#post_3483274
Once you have the wealth, you don't necessarily need anyone to help you maintain it. It's called "wise investments". Snookie and The Kardashians have made their millions/billions duping a sector of the American people into watching their stupid reality shows. They can walk away from that today, and never work another day in their life and have a nice comfortable living. The only reason they'd need to continue working is greed. "I'm not satisfied with my 8,000 sq. ft house, three Benzes, and Cessna Citation, I also want a 10,000 sq, ft, hone in the Caymans, four Bentley's, and a Gulfstream." The middle-class Americans whose "wise investments" consists of getting $500 for the year on their Discover Cash Back cards, can splurge that money on a new dishwasher or weekend getaway to the beach (if they drive). Don't think they can retire anytime soon on that cash cow.
Yeah, a grand or so back on the Chase card isn't earth shattering but I have managed to quadruple my stock investments since 2005
reefraff
Active Member
So Bionic. Do you have any proof Romney avoided taxes on his caymen island account? NO, you don't because it was all part of his FULLY TAXABLE bain investment income. At some point all assets held by US citizens is taxable unless you are rich Democrat donors who renounce their citizenship and even then you have to pay a "break up" fee.
reefraff
Active Member
Quote:
Originally Posted by Darthtang AW http:///t/392349/politicians-are-people-too#post_3483331
I just gave a simple scenario. I didn't post an opinion on the aspect. Just pointed out how it can easily be done.It has happened, countless times.
Edit: The money can be taxed again, depending on how it is spent.........We get taxed when we get paid, and we get taxed when we spend our payment..
Thats it. You are taxed when you earned the money. Then you are taxed again every time your "wise investments" make a profit. I trade more than invest so most of mine is taxed at the short term rate which is 20%. Seeing as how the government has no skin in the game I'd say that was pretty generous of me
Originally Posted by Darthtang AW http:///t/392349/politicians-are-people-too#post_3483331
I just gave a simple scenario. I didn't post an opinion on the aspect. Just pointed out how it can easily be done.It has happened, countless times.
Edit: The money can be taxed again, depending on how it is spent.........We get taxed when we get paid, and we get taxed when we spend our payment..
Thats it. You are taxed when you earned the money. Then you are taxed again every time your "wise investments" make a profit. I trade more than invest so most of mine is taxed at the short term rate which is 20%. Seeing as how the government has no skin in the game I'd say that was pretty generous of me
bionicarm
Active Member
Quote:
Originally Posted by Darthtang AW http:///t/392349/politicians-are-people-too#post_3483336
How does sticking that money in a simple interest earning account help the economy, create jobs, or help your neighbor?
http://blogs.wsj.com/wealth/2011/04/15/irelands-former-richest-man-loses-fortune/
That guys greed employeed a lot of people, enhanced the lives of a lot of people.
What is your business worth today? Could you not just sell it and live off the interest of a similar account? Why don't you do this?
My business is strictly service-oriented. We don't have a product to sell but ourselves. Our contracts would be worth something to a competitor, but all they have to do it's outbid us, and show they can provide a better service, and they could get the contract anyway. I have a tidy nestegg in the form of a 401K and other investments, but I enjoy what I do, and have no interest in retiring right now. I figured I have about another 8 - 10 years before my wife gets sick of taking care of bunch of people who refuse to take care of themselves, and when she retires, we should both have enough saved and invested where we don't have to worry about money for our current lifestyle.
Originally Posted by Darthtang AW http:///t/392349/politicians-are-people-too#post_3483336
How does sticking that money in a simple interest earning account help the economy, create jobs, or help your neighbor?
http://blogs.wsj.com/wealth/2011/04/15/irelands-former-richest-man-loses-fortune/
That guys greed employeed a lot of people, enhanced the lives of a lot of people.
What is your business worth today? Could you not just sell it and live off the interest of a similar account? Why don't you do this?
My business is strictly service-oriented. We don't have a product to sell but ourselves. Our contracts would be worth something to a competitor, but all they have to do it's outbid us, and show they can provide a better service, and they could get the contract anyway. I have a tidy nestegg in the form of a 401K and other investments, but I enjoy what I do, and have no interest in retiring right now. I figured I have about another 8 - 10 years before my wife gets sick of taking care of bunch of people who refuse to take care of themselves, and when she retires, we should both have enough saved and invested where we don't have to worry about money for our current lifestyle.
bionicarm
Active Member
Quote:
Originally Posted by reefraff http:///t/392349/politicians-are-people-too#post_3483356
So Bionic. Do you have any proof Romney avoided taxes on his caymen island account? NO, you don't because it was all part of his FULLY TAXABLE bain investment income. At some point all assets held by US citizens is taxable unless you are rich Democrat donors who renounce their citizenship and even then you have to pay a "break up" fee.
They can't get proof because Romney won't release any tax returns except the last two years. You know, the returns that have nothing to do with his earnings at Bain capital, since he claims he left that place in '99.
You really need to do some research on how banks work in the Caymans. They make those famous Swiss Banks look like piggy banks you stick on a shelf.
Originally Posted by reefraff http:///t/392349/politicians-are-people-too#post_3483356
So Bionic. Do you have any proof Romney avoided taxes on his caymen island account? NO, you don't because it was all part of his FULLY TAXABLE bain investment income. At some point all assets held by US citizens is taxable unless you are rich Democrat donors who renounce their citizenship and even then you have to pay a "break up" fee.
They can't get proof because Romney won't release any tax returns except the last two years. You know, the returns that have nothing to do with his earnings at Bain capital, since he claims he left that place in '99.
You really need to do some research on how banks work in the Caymans. They make those famous Swiss Banks look like piggy banks you stick on a shelf.