4 ms·
We should probably stop calling them "loopholes", too. The two biggest policies that reduce a wealthy person's taxes are: 1) capital gains is lower than income
by trendia 9y ago
We should probably stop calling them "loopholes", too. The two biggest policies that reduce a wealthy person's taxes are:
1) capital gains is lower than income
2) there are deductions for almost everything
3) tax-free retirement accounts
4) charitable deductions
The truth is that many of the above affect the middle class, too.
- basseq 9y agoThey absolutely help the middle class, too. The issue with being middle class is that you don't qualify for the "social safety net" deductions, but the other loopholes don't net you much in the way of absolute dollars—particularly given the investment (documentation) required. Plus: 1) Middle class typically doesn't have the ability to structure income as capital gains. 2) (See above.) 3) Given modest contribution caps in retirement accounts, not a major "loophole" for the wealthy. 4) Something we should encourage at all levels.
- eli 9y agoDon't tax free retirement accounts already phase out based on income and cap annual contributions?
- WalterBright 9y ago2. Itemized deductions get phased out once income exceeds a certain threshold, plus you get subject to the Alternative Minimum Tax. 3. There are limits to how much can be put in them. 4. Sure, you get a tax deduction for donations to charity. But you NO LONGER HAVE THE MONEY. You gave it away. Giving money away is giving away the wealth.