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You guys are making the US tax code out to be much simpler than it is. The more you save for retirement, the lower your taxable income is. We also have deductio
by pwthornton 14y ago
You guys are making the US tax code out to be much simpler than it is. The more you save for retirement, the lower your taxable income is. We also have deductions for mortgage interest and student loan interest. Our system is also progressive, so a lot of people making less money have very little taxable income. Maybe you make $90,000 a year and can't fathom how someone could live off of and save off of $75,000 a year, but the difference in your take home pay is not $15,000.
- malandrew 14y agoYup. IIRC a former roommate of mine has a plan on how to get every deduction under the sun to the maximum amount and it is actually possible to pay no taxes on like $100k, but it requires putting something like $40k towards savings each year.
- pwthornton 14y agoYes, and there are deductions for charity and this and that. And some of these deductions start to phase out with the more money you make. The point is that you can't take two people's incomes and assume you know what their tax bills will be.