Originally Posted by StugotsIII
I pay 23% and I make just under 60k per year…
How does that sound right?
Try deducting 25% of your income by giving to charity and see what your effective rate might be.
Tax rates work best when you're wealthy and living off investments and paying cap gains rates @ max 15%, less whatever deductions and deferments can be squeezed in.
Become a Hedge fund Manager, they get to pay 15% or less on billions of income.
One of the tax breaks upon which President Obama has focused is a provision that allows hedge fund managers — who make billions annually — to receive a substantial tax break. This particular tax break, known as the carried-interest loophole, allows hedge fund managers to treat the money they receive from investors as capital gains, subject to a 15 percent tax rate. Though this money is a paycheck received for services, just like a movie star receiving a bonus if her movie does well, it’s treated as investment income.
Since hedge fund managers are some of the richest people in the country, this tax break actually causes a significant loss of revenue. In fact, according to calculation by RJ Eskow, closing this loophole would raise more than $4 billion per year just from the 25 richest hedge fund managers: