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this post was submitted on 05 Jan 2024
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United States | News & Politics
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The US tax system is not at all 'heavy' on the wealthy. The largest burden, proprtionally, falls on those with high earned incomes, doctors, lawyers, etc. these are the people who will be paying the higher marginal tax rates on substantial portions of their income.
The truly wealthy do not have high earned incomes, they acquire large assets and borrow against their value to pay for living expenses while avoiding taxes. This is the "buy, borrow, die" strategy, specifically designed to limit tax liability.
Yes, you're right. I was a bit loose with the terminology.
I think we should absolutely count stock options and whatnot as earned income, so CEOs and whatnot pay taxes upon receipt as the delta between purchase price and NAV. But that's a separate discussion.