The great uninformed and misinformed population worries Quinn
Reading various social media sites it strikes me how uninformed so many people are about money and economics. No, I’m not being a snob. I make no claim to expertise on either subject, but I do make an effort to obtain a basic understanding and check facts before I comment or initiate a post.
Billionaires and the wealthy are frequent targets. Did you know billionaires pay lower taxes than middle class taxpayers? They pay only 8% according to some sources or that’s what many people choose to believe. The problem is that is based not on earned income, but the unrealized growth in net worth (investments). No matter, it plays well for people who believe they are over-taxed despite the fact the effective federal tax rate for the bottom 50% income wise is 3.7%.
I often ask if people pay taxes on the growth in their 401k or IRA before withdrawals. I’m told that’s not the same, yup it is.
But one comment stated “thanks to the Tax Act of 1986 which requires us to pay tax on unrealized gains in mutual fund holdings.” I checked that and could not find any such thing. I never paid taxes unless I received a 1099 and I received the cash or it was reinvested.
Try and posit the relationship between tariffs, interest rates and tax cuts with inflation and deficits and you are besieged with denial.
I covered Social Security perviously so I’m not going there again, but the misinformation remains monumental.
Taxes too have been covered extensively on HD by me and others, but I am still struck by the number of people who see no need for taxes (especially property taxes), no apparent understanding of their connection with schools, and community services.
I often think of the likely reaction if a value added tax (VAT) is proposed as is used by European countries. 😱 Yikes, what about raising the FICA?
Billionaires and the wealthy are frequent targets. Did you know billionaires pay lower taxes than middle class taxpayers? They pay only 8% according to some sources or that’s what many people choose to believe. The problem is that is based not on earned income, but the unrealized growth in net worth (investments). No matter, it plays well for people who believe they are over-taxed despite the fact the effective federal tax rate for the bottom 50% income wise is 3.7%.
I often ask if people pay taxes on the growth in their 401k or IRA before withdrawals. I’m told that’s not the same, yup it is.
But one comment stated “thanks to the Tax Act of 1986 which requires us to pay tax on unrealized gains in mutual fund holdings.” I checked that and could not find any such thing. I never paid taxes unless I received a 1099 and I received the cash or it was reinvested.
Try and posit the relationship between tariffs, interest rates and tax cuts with inflation and deficits and you are besieged with denial.
I covered Social Security perviously so I’m not going there again, but the misinformation remains monumental.
Taxes too have been covered extensively on HD by me and others, but I am still struck by the number of people who see no need for taxes (especially property taxes), no apparent understanding of their connection with schools, and community services.
I often think of the likely reaction if a value added tax (VAT) is proposed as is used by European countries. 😱 Yikes, what about raising the FICA?
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