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>> of your income Rich people have investments and that is not income for tax purposes if it is correctly set up. For many rich, they have escaped from W2 taxe
by landemva 3y ago
>> of your income
Rich people have investments and that is not income for tax purposes if it is correctly set up. For many rich, they have escaped from W2 taxes on income. "Income" according to the personal income tax code of IRS.
Poor working people, and middle class, have IRS income. The rich have investments and trusts and LLCs and loopholes.
- butlerm 3y agoLLCs cannot be used to avoid income taxes. The income from an LLC passes through directly to the tax returns of the owners, where taxes on it are due and payable. Same with trusts and trust beneficiaries. Capital gains on investments are taxable as well, although some people can defer paying capital gains taxes simply by not selling until they need to. That does not avoid taxes, but rather defer them until later. If anything "the rich" are subject to additional taxes, notably estate taxes. Irrevocable trusts can be used to reduce estate taxes, but do not reduce income taxes except by having a different person (the trust beneficiary) pay taxes on trust income.