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because regardless of paying most taxes, they’re still making most money
by micromacrofoot 5y ago
because regardless of paying most taxes, they’re still making most money
- 55555 5y agoHe’s saying his tax rate is dropping to 12%. So at his level it is possibly easier to make more money by switching to a job/business with a lower tax rate, even if income is somewhat lower. (I’m not sure how he’s getting 12%… LTCG with deductions?)
- onlyrealcuzzo 5y agoIn real estate your cash flow can be much higher than your taxable income due to depreciation. Since it's unearned income, you don't have to pay payroll taxes. And you can also avoid paying capital gains tax on the first $250k in capital gains on a property (after 1 year). There are a lot of people in speculative markets that pay close to 0 tax in real estate.
- 55555 5y agoThanks! That’s interesting.