Two Americas: Spenders and Savers/Investors

[nimbus]

That's true. I drive a 2000 Toyota Rav4 and live in the barrio. Extravagance means nothing to me. It's the hallmark of the insecure.

r

people fly first class and eat gourmet meals because they're insecure? ok buddy

 

[Razorguns]

people fly first class and eat gourmet meals because they're insecure? ok buddy

they're "snobby" and think they're better than others. Lots of people on EF hates those snobby country club rich folks. You seriously don't expect those rich snobby materialistic people to be seen helping out the homeless right?

first class is really not extravagent. coach is really uncomfortable and a pain. i hate flying coach.

r

 

[nimbus]

they're "snobby" and think they're better than others. Lots of people on EF hates those snobby country club folks. And you don't realy have to be rich nowadays to buy that mercedes.

first class is really not extravagent. coach is really uncomfortable and a pain. i hate flying coach.

r

I guess by definition extravagant means excessive, so you def. have a point. But i bet there is a lot of disagreement regarding what qualifies as extravagant; the cut-off definitely isn't a rav4 and house in the barrio

 

[needtogetarmy]

The Dems are only good at making poor people poorer and making the hard working feel guilty.

Fuck Obama, Edwards and Billary.

 

[mrplunkey]

worthless piece of shit he is..

created a company that paid him $300,000 in salary...and he paid the taxes on that.. then that same company that he owns paid him another $1,5000,000 in a dividend, thus his tax burden is 15% of that amount..

but hey.. i do it too.. but with lower amounts.. but someday, i'll tell people what they want to hear and convince them to give me money for free..

That's a horrible goof on his part. Let me show you how much easier it should have been for him:

1) The $300,000 he paid himself would be an expense, so he'd save the 35% in corporate income he'd have to report, but he'd have to personally pay 35% federal along with state-specific income tax if applicable. Plus... he'd have to pay 7% ss taxes, blah blah on the salary.

2) For the remaining $1.5M, he'd have to pay 35% corporate taxes on that... THEN pay an additional 15% tax on the dividend he pays to himself. That's double taxation... gotta love the good old US of A.

So net result:

35%+7% on $300,000 = 126,000
35%+state tax (assume 4%) on $1.5M = 585,000
... then 15% more on the = 137,250
Grand Total: $848,250 in taxes on $1.8M in money ... so 47% net tax rate

47%??? fucking RIDICULOUS

So instead... do this:

1) Pay yourself $30,000

2) Outsource a key business function in an overseas subsidiary. Sign a $1.770M contract (+ actual costs). Generate a $1.770M profit in a tax-friendly country (i.e. 10% rate).

So new net result:

35%+7% on 30,000 = 12,600

10% on $1.77M = $177,000

Grand Total: $189,600 of $1.8M ... so 10.5% tax rate

Hmm... which one would you want to pay?

And here is the real kicker... the profits are now in a foreign country, fresh for someone to use to build yet another business competitive with the US. American jobs are lost to boot, so there goes your tax base.

Now look... who in their right mind is going to sit here and get fucked with 47% taxes?

 

[mrplunkey]

people fly first class and eat gourmet meals because they're insecure? ok buddy

Virtually no one ever buys a first class ticket. It's a perk system for rewarding frequent fliers who stick with one (or two) airlines. Basically you get points for flying and can use those points for first class which generates more points, etc. etc.

It's marketing 101.. separate the buyer (corporations) from the consumer (individual flying employees) and enjoy enhanced profits.

So no... first class has *nothing* to do with the rich.

 

[blackhawk60]

Virtually no one ever buys a first class ticket. It's a perk system for rewarding frequent fliers who stick with one (or two) airlines. Basically you get points for flying and can use those points for first class which generates more points, etc. etc.

It's marketing 101.. separate the buyer (corporations) from the consumer (individual flying employees) and enjoy enhanced profits.

So no... first class has *nothing* to do with the rich.

I would love to fly first class, but just can justify spending an extra 4000 for 12 hours of flight time. You're right about some being perks...but there are a lot of people that shell out for first class, and there are some that get lucky and get upgraded for a lot less.

 

[bigmann245]

worthless piece of shit he is..

created a company that paid him $300,000 in salary...and he paid the taxes on that.. then that same company that he owns paid him another $1,5000,000 in a dividend, thus his tax burden is 15% of that amount..

but hey.. i do it too.. but with lower amounts.. but someday, i'll tell people what they want to hear and convince them to give me money for free..

what kind of a number is $1,5000,000?

 

[heatherrae]

bleh.

I'm sure what Stanley had to say was great. I'm frugal too. However, then the author somehow had to spin it against the Democrats who try to help the people who are not wealthy. Bleh. Makes me want to vomit.

 

[75th]

bleh.

I'm sure what Stanley had to say was great. I'm frugal too. However, then the author somehow had to spin it against the Democrats who try to help the people who are not wealthy. Bleh. Makes me want to vomit.

lol