Taxes Suck In The US
 

Basically if you make $60,000 and $100,000 in the US with the standard deduction you'll take home around the same amount of money. Anything over $100,000 your taxed in the US at 53% of your income if you live in let's say California.

So how the fuck are you supposed to accumulate wealth in this stupid country??? It seems like all the millionaires are corrupted in some way. I mean It's damn near impossible to accumulate wealth with such a high tax rate.

Is there loop holes you can use if you make over $100,000 so you can keep a decent sum of your earnings if you're self employed?

make cash

If you make $100,000 a year, you can hire an accountant, a book-keeper, and a lawyer to reduce your tax burden.

It'll cost you $99,999 dollars to do it, but hey! Suck it up. I am.

Welcome to corrupt politics!

We should start cleaning things up with term limits. Politician shouldn't be a career choice.

Incorporation / forming a LLC to keep much of the revenue within the corporation / leverage ... then as for income - one can often take some as a "distribution" instead of straight income. Services of a reputable CPA tax accountant can make a huge difference in reducing one's business tax liability.

With all that said, yep, the tax system is tilted to favor the rich - more specifically, the super-rich. Using traditional off-shore accounts to illegally avoid taxes is so yesterday and generally only "penny" millionaires who don't know better / greedy do that (FATCA legislation is aimed primarily towards that group)...

The super-rich operate in a totally different legal sphere with the ability to avoid taxation legally through the use of off-shore entities; incorporation off-shore and then, to put it in simple layman terms, shifting expenses to higher tax countries and the profits towards lower tax ones.

I'm in Canada, but we've found all kinds of ways to reduce our tax liability. Like paying shareholders dividends, rather than everything as a salary. :2 cents:

This.

Or give up your citizenship. With that said, being an American has its advantages. Enough said.

Freedom isn't cheap!

No state income tax here.

Thanks, tourists!

you should consult with 12clicks cash.

Yup. I have an LLC setup to be taxed as an S-Corp. This allows me to pay myself a reasonable salary, which will include all of the usual tax, SSI, medicare, etc. deductions and I am also entitled to take out money as a member that doesn't have to have social security and medicare taken out of it.

Only downside is that in this state you have to have unemployment insurance what that arrangement even if the only employees are also members. So I do pay 2.7% that I wouldn't normally pay, but considering I'm saving roughly 15 or 18% or whatever on what's not taken out as salary, I end up better off.

I also have an individual health insurance insurance policy, but my company pays it for me and the amount comes across onto my W-4 tax free.

dave i feel sorry for you man! you should come to europe with 0 tax rate.
i`ve never paid 1 cent for taxes in 8 years.

It's not a tax if they add "value added" in front of it!

Can I do that if I'm a photographer and I get 1099 from agencies that distribute my royalties?

Don't be a cheap ass..... Research and find a good accountant near you and get opinions from several of them as to how they would save you money. Then hire the best.

Start with having them look at your last 3 tax returns, they can resubmit them for you too and get you money back if you screwed stuff up.

That's the price you pay for socialism.

It's a rip-off, if you ask me.

I wish somebody would tell me how much it costs. Cause we definitely are not "free" here in the U.S.
I'll be happy to pay more if I could be free. :)

Pfft.

Taxes are dumb. Write everything off. I had a company sponsored breakfast this morning, trying to get a new client on board; She's half my age and we've been doing breakfast and each other every morning for the past two years.

On paper it looks like I don't make a fucking dime.

Why are you admitting of doing illegal shit on a public board?

If the royalties are paid to your company then the answer is yes. Plus if you're paparazzi there are tons of deductions you may be missing.

start a company and assign your copyrights to it.

Better hope the % of your company revenue you are writing off as meals and entertainment is not an audit flag for the IRS.

That's not illegal :2 cents:

I'm sure the IRS is cruising this board to catch tax cheaters, right before they sign into their Facebook page.

You're doing it wrong.
Obama paid an effective tax rate of 20.5 percent on income of $789,674 last year.
Sounds fair to me.

Just doing some simple reading in the forms that IRS provides, you can cut you taxes.

Taxes suck in my country too, we have the most expensive cars in the world. :@

That's nothing! In Canada the top tax level is 45%, it starts at 120K to Billions, it doesn't matter.

holy shit

you aren't actually "saving" it, you use a "trick" to contribute less to your SS, so when you retire in 30 years you will for example get $1k/month a month, instead of $2k you would normally get... so in a way you are saving now, but fucking up your retirement...

it's a bit more complicated than this, you actually do save a little due to many reasons, but when you consider all the overhead, all the accounting fees, all the drama, paperwork you have to deal with, etc, the saving is trivial if any at all
:2 cents:

Solid choice.

:thumbsup

:1orglaugh :1orglaugh :1orglaugh :thumbsup

That is ASSuming you actually live long enough to collect it, and that it still exists.

:2 cents:

You accumulate wealth by not spending it.
Then you accumulate wealth by investing it.
Your real earnings are after taxes.

This is exactly it, we're not meant to accumulate wealth as then we don't have the same need to submit for employment. Slaves work better when they believe they are free; we're Free Range Slaves. We are shown Golden Carrots and the American Dream purely to motivate us and make us work harder, but in reality very few of us will ever achieve those.

Those at the top don't like the idea of inheritance, as then the next generation doesn't have the same need to submit for employment and be taxed. This is why they start injecting us with aluminum every year after a certain again, most people call that the old persons Flu Jab, in reality it's a way of getting as many people into care homes with Alzheimer's/Dementia, then draining away their life savings before they die.

"According to Hugh Fudenberg, MD, the world's leading immunogeneticist and 13th most quoted biologist of our times (nearly 850 papers in peer review journals), if an individual has had five consecutive flu shots between 1970 and 1980 (the years studied) his/her chances of getting Alzheimer's Disease is ten times higher than if they had one, two or no shots. I asked Dr. Fudenberg why this was so and he said it was due to the mercury and aluminum that is in every flu shot (and most childhood shots). The gradual mercury and aluminum buildup in the brain causes cognitive dysfunction. Is that why Alzheimer's is expected to quadruple? Notes: Recorded from Dr. Fudenberg's speech at the NVIC International Vaccine Conference, Arlington, VA September, 1997. Quoted with permission. Alzheimer's to quadruple statement is from John's Hopkins Newsletter Nov 1998." ----Ted Koren, D. C. http://www.odyssee.net/~expodome/autism.htm#Top Koren Publications (800-537-3001). "

http://www.whale.to/vaccines/flu11.html

Then move to Saudi Arabia, it would be the perfect society for you. No abortions, being gay is illegal, religious police, no taxes, and they have the highest death penalty rate in the world. Exactly how people such as yourself with room temperature IQ's would like it to be here.

That's only for peasants. The thousands of Billionaires in the extended royal family there do the best drugs, sleep with the finest whores (and Hollywood starlets) and party all over the world. :)

Just sayin', the peasants there are no worse off than the peasants here. But the rich people there are way richer thanks to us buying their oil.

rental properties can defer a lot of that tax into a growth investment. you get 10 or 12 of those..

What's illegal about taking a potential client out to dinner? Or breakfast? Or the movies? Our industry throws huge, lavish parties... It's not because they are nice guys, it's because it's a fucking tax write off.

As people have said: a solid CPA and a bookkeeper will get you in order. Form an LLC or an Scorp, relocate your business to a state with no state tax, and put some cash into tax deferred investments.

Sure you still have to pay, but it's not nearly the 53% you're referring to.

Lol you can' be serious? Movies? Breakfast everyday. Good luck if/when those deductions actually become an item of discussion with the IRS.

.

Writing off 100% sure is and try to explain you are such a poor closer you need to meet everyday with the same client.

Isn't that called "keeping two sets of books"?

Yep in an Audit, most of these will get DENIED!

The difference in income taxes between the US and Canada isn't that large - in Canada federal and state/provincial taxes are blended together, Americans pay federal and state income taxes seperately.

Canadian with an income of $300,000 a year pays 39% average tax rate.

An American with an income of $300,000 a year pays 26% average federal tax rate, then another 10%(California) in state income tax, so in total 36% - not much less than a Canadian.

Where Canadians get screwed is the federal sales tax on just about everything they pay for.

As for US states like Florida and Texas without state income taxes, check out the property taxes in those states - there is no magic money tree for those states, what they don't get in state income taxes they get from elsewhere.

The US is becoming Canada Junior - which is sad, but inevitable. Once a country takes steps toward socialism there's no turning back.

You better hope you are never audited, your ass hole will be so sore you won't be able to sit down for months. :2 cents:

Taxes, Shit, theres tax payment for the taxes....lOL... Bull Shit....

So your saying that taking potential clients out for meals and entertaining them isn't a valid write off?

If the IRS comes to me and says "Why did you write off movie tickets and popcorn". My reply would be "I had a business meeting / dinner with Solo Babe Cash and Dating Gold (Dinner was bought by Dating Gold, which was surely written off also) and after that we went to the movies. It was a business expense". I did in fact go to the movies with Belinda and Mark from Solo Babe Cash (whom I do business with on multiple levels) and also with Dating Gold (whom I also do business with).

You don't think CCBill writes off their party bus and it's driver as a "business expense"?

What I'm saying is your personal examples are illegal deductions. I'm not going to argue taxes with you if you think deducting 100% of breakfast everyday with your girlfriend is legal just because you "talked" business.

51% tax rate :(