What that means is inheritance, investments, sudden windfalls of $1 million will now only get you about $600,00. It's a small increase from what it was but it's now enough to ensure that you will NEVER retire from a lump sum amount of $1 million ($1 million goes very fast). You will need $2 million for a middle age adult to retire. $5 million for the same adult to retire comfortably. About $7 million for someone in their 20s to do the same. Meanwhile, those who earn that much or more regularly will continue to use the same tax loopholes to avoid paying taxes. It leaves them alone and squeezes middle class and prevents you from climbing the income ladder. And the stock market dropped because of this. I wonder why? It's because the smart upper class investors are shuffling assets to avoid it and the middle class... well, they don't have the money to buy in the dip. Bitcoin lost like, what, $8000 overnight? AND PEOPLE ARE PRAISING THIS. If they wanted real change, the tax laws need to be completely revamped. But that's not what it's about. But keep dreaming of that free housing, free college, free whatever, yo. All you're doing when you support this kind of crap is destroy yourself.
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That's not how any of that works. Literally a 40% tax rate. What you said has nothing to do with anything.
I need to show you the math, then and we're going to do it with an average middle class family.
House mortgage: $200,000
Student loans: maybe $100,000. Per adult.
Save for the child's college education: $100,000.
We haven't even touched thrifted furniture that's falling apart, that 10 year old bed with a sag in the middle. A car to replace the junker you're still paying on.
Where we at? Let's see, you get $1 million, taxed at 40% leaves $600,000. That leaves $200,000. No one is retiring on $200,00. Ever.
Two million leaves you enough to retire on.
You pay 30ish% after the state takes its pound of flesh. Unless you're in New York where they want to tax you at 50%. At least.
There's nothing left. You get two paychecks in most states of $2500 per month.
lulwut? No, you pay taxes on any income. You have tax forms you have to file. You get taxed on it like any income. Try doing some actual investing.
Nah, just a one time inheritance or lottery win. At that point, you are still left with pretty much nothing. Like I said, you can't retire.
35% is pretty aggressive. Not to mention any state tax on top of that. And I believe it's $5 million though I might be wrong. Even still, you're still hammered by a capital gains tax just like what Biden is increasing.
It's theirs. They can have and do whatever they want. Just because you'll never have it doesn't mean no one else should. Stop with this attitude of "If I can't have it, no one can." It's pure evil.
You really should have put that first so I knew from the start not to take you serious.