VIDEO ON MSN MONEY
The three fixes for those on the dole are: 1. don't have kids you can't afford to raise; 2. educate yourself; 3. get a job.
There, now everyone has the road map to success and we can now concentrate on the Olympics.
What a load of crap this article is. I'm a tax advisor, and let me just clear something up... there are no "tax breaks for the rich" There is not a single tax deduction that kicks in when your income is a certain level or higher. However, personal exemptions, itemized deductions, student loans, tuition expense, Ira deductions, and just about any other credit or deduction you can find is reduced or eliminated for the highest tax brackets.
Notice that the author says something like "this rich probably have access to break the rest of us will never enjoy" ... yet the article doesn't mention any. the reason? there aren't any!
True, one of the great ways to transfer wealth is thru handing down real estate... but these rule apply to anyone, not just the rich. the only other area I know of that tends to benefit wealthy people is that some private equity funds get taxed at a lower rate than the normal marginal income tax rates. However, you are talking about a miniscule fraction of people in the highest tax bracket that run a private equity fund.
The biggest "secret" is not to live above your level of income.
I'm surprised that this article did not list that divdends from common stock investments are only taxed at a maximum of 15% except for the very high income persons. Anyone can get in on this break by just saving some of their income and investing it in mutual funds that hold dividend paying common stocks like Exxon, Chevron, Coca Cola and Pepsico.
Not sure you'll save 1,000's on your taxes by cleaning out your closet. Remember the fair market value of your used clothing is next-to-nothing. See what it's selling for at your local Goodwill store.
A far better idea is to donate highly appreciated stock to the charity. You avoid capital gains since you didn't sell it and the charity doesn't pay taxes so they avoid the capital gains when they sell it.
I am not rich but I use all three of these. .Just FYI for the author , the average person making more than 250K pays 29% tax, the average person under 250K pays 19%. And then there Is the fact 47% of people pay nothing.
Obama is now proposing a new retirement tax on successful people (notice I did not say rich people). so what message are we sending to Americans? Being a government employee is the only way to retire young and have your way paid to the grave.
Socialism has never worked but it appears we are on our way.
So how poor is poor,,,,
,Americans who live in households whose income is below the federal “poverty” level typically have cell phones (as well as landline phones), computers, televisions, video recorders, air conditioning, refrigerators, gas or electric stoves, and washers and dryers and microwaves, according to a from the Census Bureau.
In fact, 80.9 percent of households below the poverty level have cell phones, and a healthy majority—58.2 percent—have computers.
Fully 96.1 percent of American households in “poverty” have a television to watch, and 83.2 percent of them have a video-recording device in case they cannot get home in time to watch the football game or their favorite telephone show and they want to record it for watching later.
Refrigerators (97.8 percent), gas or electric stoves (96.6 percent) and microwaves (93.2 percent) are standard equipment in the homes of Americans in "poverty."
More than 83 percent have air-conditioning.
Interestingly, the appliances surveyed by the Census Bureau that households in poverty are least likely to own are dish washers (44.9 percent) and food freezers (26.2 percent).
However, most Americans in “poverty” do not need to go to a laundromat. According to the Census Bureau, 68.7 percent of households in poverty have a clothes washer and 65.3 percent have a clothes dryer.
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