Wealth Formula by Buck Joffrey

403: The Tax Case in the Supreme Court That You Must Know About

Dec 10, 2023

The podcast discusses the misconception surrounding rich Americans and their fair share of taxes. It also highlights the impact of estate taxes and an upcoming Supreme Court case that could affect investments. The case 'More versus the United States' and its implications are explained, along with speculations on the Supreme Court's decision. The podcast also explores investing in self-storage and provides updates on a tax case to watch.

36:34

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Quick takeaways

High-income earners are targeted by politicians for higher taxes, despite not being considered truly rich, leading to tax burdens exceeding 50% in states like California.

The Supreme Court case of Moore vs. United States may have significant implications for investors, potentially impacting tax deferment vehicles and challenging investment strategies.

Deep dives

Commercial aviation as a profitable investment

Institutional players like Warren Buffett and BlackRock dominate investments in commercial aviation due to its profitability and predictability as an alternative asset. Commercial aviation offers income through triple net leases with major airlines, such as American Airlines and British Airways. This type of investment was previously only available to accredited investors but is now accessible to a wider audience.

Introduction

2min

Accredited Investors, Taxes, and the Supreme Court: A Discussion on Wealth and Taxation

5min

Understanding the Tax Case 'More versus the United States'

2min

Tax Case: Moore v. United States

16min

Speculating on the Supreme Court's Decision in a Tax Case

9min

Investing in Self-Storage and Updates

3min

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?

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Wealth Formula by Buck Joffrey

403: The Tax Case in the Supreme Court That You Must Know About

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Commercial aviation as a profitable investment

Taxes and the burden on high-income earners

The case of Moore vs. the United States

Implications of the Supreme Court decision

Remember Everything You Learn from Podcasts