I prefer this too, I'd do it across the board to corps, people, no deductions
Would make doing taxes really, really easy. No need for all the tax prep people and software.
Would make doing taxes really, really easy. No need for all the tax prep people and software.
Don't you think you'd get some pushback from the 1/2 of the population that doesn't pay any taxes now?
The numbers I used are taking the tax rate into account, the 20% rate vs the 40% rate and the calculated after tax returns based on earning your 25% pre-tax return and paying the tax each year. That 35 year number is reality with exponential after tax growth of 20% a year (pre tax return of 25% and a tax rate of 20%). The 15% trend is using the 40% tax rate each year.
Here's another format to look at the same numbers.
The very odd thing is the .gov is actually collecting less taxes with the higher rate. The exact same logic works for income taxes. Income tax rates increase and the total taxes collected drop.
20% tax rate collects $737,085 in taxes over 35 years.
40% tax rate collects $440,585 in taxes over 35 years.
How dumb is that? That's the .gov for you.
Here's another format to look at the same numbers.
The very odd thing is the .gov is actually collecting less taxes with the higher rate. The exact same logic works for income taxes. Income tax rates increase and the total taxes collected drop.
20% tax rate collects $737,085 in taxes over 35 years.
40% tax rate collects $440,585 in taxes over 35 years.
How dumb is that? That's the .gov for you.
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How about we all pay 10%, no exceptions?
I swear I don't know why you're making this hard. All that chart is doing is calculating compound interest with extra steps. 20 years, 20% year over year, annual compounding, on a 5k initial = 191,688 assuming you put money somewhere, park it and don't do all your squirrelly doodles to need to take into account anything else. Because in this perfect world scenario you're imagining a need to move everything annually to continue getting 25%. Heck, at the point simplify it out to just putting it one spot the whole time @20% and call it good in dreamland. Either way, you do you. I'll see you on Forbes someday I'm sure.
You hear all the time about the teacher that died a millionaire. That's how you gain wealth, you invest and never touch it.
In 2017:
Top 1% of taxpayers paid 38.5% of taxes collected by IRS
Bottom 90% of taxpayers paid 29.9% of taxes collected by IRS
Wonder what the rate needs to be before the rich are paying their fair share?
Top 1% of taxpayers paid 38.5% of taxes collected by IRS
Bottom 90% of taxpayers paid 29.9% of taxes collected by IRS
Wonder what the rate needs to be before the rich are paying their fair share?
And how long do you think it would be before politicians (both teams) started making exceptions, deductions, etc.?
That's one style sure ---- and literally the style I've been mentioning. Compared to the fancy sheet you present which assumes a rebalance or change every year.
Depending on the person, situation, risk tolerance, there's lot of avenues to wealth. Or to what one perceives as wealth (since not everyone measures wealth as money TBH). Years ago for instance, I said a financial goal of mine was being able to tell the Chipotle people "Yeah, I know guac is extra". Reason being, when I was 18 that upcharge would have mattered, now I could care less. That doesn't mean be wasteful, but I sure don't have to worry about it.
Heard an interesting take on what Prez will be proposing in spending tonight in his bold plan ($4 trillion). Every household in America just needs to send in an extra $32k to cover it. Seems doable, right?
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