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Yeah. I think a lot of the non-founder, high-pay FAANG crowd is in the funny spot where we are all paid super well, pay a lot of taxes, but if we were richer..
by steveBK123 3y ago
Yeah. I think a lot of the non-founder, high-pay FAANG crowd is in the funny spot where we are all paid super well, pay a lot of taxes, but if we were richer.. we'd actually pay a lot less taxes.
Being paid salary by employers, we can't structure our compensation to the most tax efficient forms.
The guys (almost always guys) at the top structure their pay to forms like stock or pass-thru or carried-interest, or whatever tax arb of the decade. Then they carry it forward, use trusts, borrow against stocks, and then hand it off to their kids when they die w/o tax.
They probably own enough houses, and have control of their schedule that they can stay out of CA/NY for 183 nights/year and avoid high state income tax too (while mandating RTO to high tax city/states for the rest of us).
Kind of a millionaires vs billionaires (or even decamillionaires) thing.
- yieldcrv 3y agoyeah I make similar as FAANG employees but in a mixture of businesses and capital gains, deducted by retirement contributions (doing your own employer match is a super power! 3x higher contribution limit), QBI, illiquid asset based donations to donor advised funds and deducting the expenses to generate income my tax is basically 0 every year, down from closer to 52% marginal in California (effective 40%) if I was doing the same with W-2 income there would be almost nothing I could do