1) If anyone was even mildly surprised by this, then I’d have to say they never followed or thought about this issue. (Many wealthy folks arrange for all their “income” to be from dividends of stocks… and thus, they pay no tax on that income. That’s been true for my whole life, and I’m not young.)
2) Has anyone with these “deep, thoughtful” takes on this issue looked at the list of folks whose taxes were released? Did anyone notice that every last one of them said something unsupportive of the previous President, at some point? Notice how Trump’s taxes were not, in fact, “leaked”? Weird, huh? It’s *almost* as if it were politically motivated.
3) It is, in fact, a black-letter violation of law for these records to have been leaked. Crimes are supposed to get investigated, even if one believes one has benefitted indirectly from that crime.
I mean to say: Anyone who thinks the story here is “the rich pay no taxes” is likely to be similarly surprised by the news that the Earth’s orbit around the sun is so regular it can be predicted, trivially, with micro-second accuracy. And, since the House and Senate publicly voted, a few years back, (to great fanfare), to put many huge corporations into the exact same situation as these wealthy folks, the faux outrage at the situation looks just a tad disingenuous.
to your first point, I pay taxes on dividends if I pull them from my brokerage account. I avoid that by just having the dividends re-invest back into the same stocks.
(Re-investment does NOT cause them to be tax free.I reinvest dividends in my brokerage account, and I pay taxes on that income. ) If dividends were your *sole* source of income, they would be untaxed, regardless of how you spent them; such are the rules of the road. Working stiffs have to pay taxes, the wealthy don’t. Qualified dividends are taxed at the long term cap gains rate, which is pegged to the next step *down* from your other income’s marginal rate, if you only have long term cap gains, and no other income… then that would be the ZERO tax rate, you see. My best advice is: be rich just because it works out better, financially.
Because they are taxed at the next marginal rate down from the rest of your income… and I’m guessing that puts ’em at zero. (I mean no insult.) There may also be an amount that’s non-taxable, anyway… is it $400?… but, for Federal taxes, I’m pretty sure you could spend those dollars on booze and hookers and they still wouldn’t be taxed. (Re-investment however provides better long term results.) I’m quite certain that re-investing ’em does NOT “shelter” them, because there’s no place, no form, no line on any form, to report what’s been done with that income. It could be you’re just not reporting ’em, and you do owe taxes on ’em. (Feel free to delete this thread, if you think it might tend to be incriminating. And, of course, as a random dude on the interwebs, there’s a better than even chance that I am entirely wrong.) I’m not a tax professional, but, as it happens, I’ve worked for a number of years at a firm that specialized in tax reporting for brokerage accounts.
Three points:
1) If anyone was even mildly surprised by this, then I’d have to say they never followed or thought about this issue. (Many wealthy folks arrange for all their “income” to be from dividends of stocks… and thus, they pay no tax on that income. That’s been true for my whole life, and I’m not young.)
2) Has anyone with these “deep, thoughtful” takes on this issue looked at the list of folks whose taxes were released? Did anyone notice that every last one of them said something unsupportive of the previous President, at some point? Notice how Trump’s taxes were not, in fact, “leaked”? Weird, huh? It’s *almost* as if it were politically motivated.
3) It is, in fact, a black-letter violation of law for these records to have been leaked. Crimes are supposed to get investigated, even if one believes one has benefitted indirectly from that crime.
I mean to say: Anyone who thinks the story here is “the rich pay no taxes” is likely to be similarly surprised by the news that the Earth’s orbit around the sun is so regular it can be predicted, trivially, with micro-second accuracy. And, since the House and Senate publicly voted, a few years back, (to great fanfare), to put many huge corporations into the exact same situation as these wealthy folks, the faux outrage at the situation looks just a tad disingenuous.
to your first point, I pay taxes on dividends if I pull them from my brokerage account. I avoid that by just having the dividends re-invest back into the same stocks.
(Re-investment does NOT cause them to be tax free.I reinvest dividends in my brokerage account, and I pay taxes on that income. ) If dividends were your *sole* source of income, they would be untaxed, regardless of how you spent them; such are the rules of the road. Working stiffs have to pay taxes, the wealthy don’t. Qualified dividends are taxed at the long term cap gains rate, which is pegged to the next step *down* from your other income’s marginal rate, if you only have long term cap gains, and no other income… then that would be the ZERO tax rate, you see. My best advice is: be rich just because it works out better, financially.
so why am I not being taxed on those dividends?
Because they are taxed at the next marginal rate down from the rest of your income… and I’m guessing that puts ’em at zero. (I mean no insult.) There may also be an amount that’s non-taxable, anyway… is it $400?… but, for Federal taxes, I’m pretty sure you could spend those dollars on booze and hookers and they still wouldn’t be taxed. (Re-investment however provides better long term results.) I’m quite certain that re-investing ’em does NOT “shelter” them, because there’s no place, no form, no line on any form, to report what’s been done with that income. It could be you’re just not reporting ’em, and you do owe taxes on ’em. (Feel free to delete this thread, if you think it might tend to be incriminating. And, of course, as a random dude on the interwebs, there’s a better than even chance that I am entirely wrong.) I’m not a tax professional, but, as it happens, I’ve worked for a number of years at a firm that specialized in tax reporting for brokerage accounts.
www.investopedia.com/ask/answers/011215/if-i-reinvest-my-dividends-are-they-still-taxable.asp
ah, I didn’t realize there was a floor for taxability, that’s likely why, I’m not making anywhere near $400 a year on those investments.