Editor: Crass Cash
How would you like to keep 20% more of your income? Well if you're Mitt Romney and not Jeb Bush you can do that. I say that because Jeb Bush just released his taxes for the past 33 years! That's the most I've ever heard of and it's interesting to see.
Two things jump out immediately. First, apparently politics pays because he saw a jump of around $200k from being governor to around $2 million right after leaving office. Secondly, he didn't earn his money the same way that Mitt must have because he paid an assload more in taxes.
How could this be? Well if you've read all of this blog you'll know that taxes on capital can be structured to be drastically lower than taxes earned on income, like 20% lower. Mitt Romney knows this because he's a finance guy and has thus setup his assets in a way that takes advantage of it. Would you rather make $100k and pay $33k in taxes or $15k?
Payroll taxes are a killer. If you're self employed and pay yourself a salary, you're going to have to pay both sides of payroll taxes. That's 15% right off the top before you even start talking about the federal or state taxes. Income derived from investments on the other hand, you don't have to deal with any of that shit, assuming it's passive income.
Moral of the story is to make money via assets and not the sweat of your brow. If you love your job and the company that you run, that's 100% fine. Just know that according to our tax structure, you're going to pay dearly for it.
Two things jump out immediately. First, apparently politics pays because he saw a jump of around $200k from being governor to around $2 million right after leaving office. Secondly, he didn't earn his money the same way that Mitt must have because he paid an assload more in taxes.
How could this be? Well if you've read all of this blog you'll know that taxes on capital can be structured to be drastically lower than taxes earned on income, like 20% lower. Mitt Romney knows this because he's a finance guy and has thus setup his assets in a way that takes advantage of it. Would you rather make $100k and pay $33k in taxes or $15k?
Payroll taxes are a killer. If you're self employed and pay yourself a salary, you're going to have to pay both sides of payroll taxes. That's 15% right off the top before you even start talking about the federal or state taxes. Income derived from investments on the other hand, you don't have to deal with any of that shit, assuming it's passive income.
Moral of the story is to make money via assets and not the sweat of your brow. If you love your job and the company that you run, that's 100% fine. Just know that according to our tax structure, you're going to pay dearly for it.
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