You know what drives me crazy? Politicians talking about how rich Americans need to start paying their “fair share”.
First of all, they aren’t really taking about the rich. They are talking about you—the high paid professional.
To be clear, if you are making $400K-$800K per year as a W2 wager earner, you’re doing well for sure. But you aren’t rich. Yet, you are the one that gets vilified and gets destroyed by the tax code the most.
And let me ask you a question. Do you think you are paying your fair share of taxes? In California, you’d be paying a tax rate of over 50 percent. I bet you don’t think that’s fair either. At least you can agree with those politicians on something!
Then there is the estate tax. For those of us who have done well in our lives and paid taxes along the way, there is an extra kick on our way out. Its punitive—again taxing over 50 percent on money that has already been taxed.
Do you think the government deserves that money or your family? I think I know the answer. And if you think that you aren’t rich enough for the estate tax think again. Those numbers are coming down next year and there are many who would like to see it start as low as $1 million estates. This will affect you if you don’t plan for it.
Luckily there are groups like the National Taxpayers Union (NTU) Foundation out there that are looking out for us.
In fact, there is a case about to go in front of the supreme court shortly that could have profound affects on your investments. The case is called Moore v U.S. and it is something you should absolutely know about.
To help you understand what the stakes are, I invited NTU member Joe Bishop-Henchman to explain it to us on this week’s episode of Wealth Formula Podcast.
Show Notes:
00:07:47:12 Moore VS U.S.
00:10:21:01 The main arguement
00:15:17:18 What happens when either side wins?
00:20:10:24 What is defined as realised gain?
00:24:37:07 Implications of the ninth circuit court case
00:29:48:10 When can we expect a decision?
