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Guest-5ty5s4
Guest
Yes, you can optimize your taxes as a business owner, but GPM is right about your real effective tax rate being much higher than your cumulative nominal tax rate.Where do you live with an effective tax rate of 70%?
If it's the United States, that simply isn't true. The country's wealthiest people aren't paying taxes anywhere remotely near that rate. Starting with the well known example of Peter Theil's oversized Roth IRA account. Anyone paying 70% is simply too lazy or ignorant to learn how to minimize taxes to an acceptable rate. You can trot out all those conspiracy stats totaling up the endless taxes, but realize they apply to W2 employees. Not business owners and investors. Not people who create wealth.
Yes, taxes have their place. They're used to provide all the benefits of living safely in a modern society. People bitch endlessly about "'paying too much" without considering what's received in return. Sanitation, clean water, agriculture not filled with toxins and bacteria, meat packing products that won't kill you, public libraries, museums, education, auto safety. None of which was true in 1900.
When you factor in the taxes on your taxes on your taxes, it really is a lot more than what you think. Sales, property, payroll, capital gains, etc.
People also excuse endlessly about the benefits without setting any kind of meaningful cap or limit or putting hard numbers to the test.
There has to be some amount or limit. How much taxation is too much? How much does the government actually need?
Does the IRS need 10 employees, 100 employees, 1,000 employees, or 1,000,000 employees? Do we need a fountain in the park made out of solid marble with gold flecks in the bottom?
Come on man, it's not black and white.
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