Quote (Nearin @ Apr 25 2018 12:35pm)
Ya i just hate the concept that we tax labour gains higher than capital gains, I am of the philosphy that $1 is $1 regardless of where it comes from.
By lowering the tax rate on capital gains we are saying that those who work for a living pay 100% of the tax rate, where as those who invest (the rich) pay a lower tax rate on that portion of income. (obviously their $'s paid in tax is still higher)
the philosophy is to incentivize investment over hoarding cash in savings but the result is favorable taxation for the rich.
This is why the ultra rich take much lower salaries and pay themselves as cash disbursements for preferred class shares, and using option plans etc.
e/ this actually punishes the upper middle class the most, those who work for a great living earning them a high tax bracket but still make the majority of their income from labour capital
Compound interest is the greatest force in the universe. Nevermind tax brackets, exemptions etc etc..... These are all just subservient to compound interest.
One man can work his ass of just to scrape by while another can sit on his fat ass and wake up with more money in his account then the working man could ever imagine.
I picture a civic in a race with a Ferrari. No matter how hard the civic pushes itself the Ferrari will lap it 10 fold without breaking a sweat.
That is the difference between the rich and the poor.
It is the sole reason why I am a cheap/frugal person who invests every spare cent I have. As you said investment favors the rich for obvious reasons. The more money you have the easier it is to accumulate more money at an ever increasing rate.
There is no question the current system of capitalism will always serve the wealthy, no matter what changes are argued over. All you can do is not by into the game of buying stupid shit to impress people while you rack up debt you will never be able to pay off.
The majority will unfortunately never have a significant amount of money to invest so they will never be able to break out of the cycle of paycheque to paycheque living. In order for the current system to work the majority need to be permanently trapped in this cycle imo.
One thing I learned after being irresponsible with money for a couple years when I first started working was you can spend $100 now or guarantee yourself $200 in 10 years or $1600 in 40 years, minus inflation. I save money now so I can increase my buying power in the future when I have a better idea of what it is I truly want.
This post was edited by Killingyouall on Apr 25 2018 03:19pm