Taxing the Rich? Hell, You Can't Even SOAK 'Em!

I saw the video equivalent of this article last might on Kudlow & Co. (a show I normally don't watch because I detest Kudlow)--the chart contained in this article shows that AT ANY TAX RATE, the rich (and everyone else) pay only 19.5% federal tax. This is known as Hauser's Law.

As soon as I can find the video of it, I'll post the link.

From the highest to the lowest federal tax rates laid out by Congress, we all only end up paying in about a constant 19.5% rate, because with every tax increase comes new credits and deductions to absorb the excess. In essence, we already have a flat tax system, so why not just take off the cloak and dagger and expose it to the masses?

Along with new credits and deductions to offset the increases, and creative use of existing credits and deductions, there is also disincentive to make more money, and to just sit tight on one's laurels (and on money already earned and taxed). Then, there's this little thing called wages, tips, and salaries--better known as "taxable income." Also known as ACTIVE income, and another deterrent to money-making and tax-paying. PASSIVE income (also known as investment, rental, or lease income) doesn't get taxed at the same rate as ACTIVE income, so it isn't subject to as many Congressional whims...and is the "rich" refuge of choice. Do you blame them? I don't--hell, I used to own rental property myself, and got handsomely rewarded for it by Uncle Sam.

If all currently low-income families had just one rental property, and it were rented continuously, they'd all potentially be millionaires NO MATTER THE TAX RATE. This is why knowing your tax code is the best way to fight poverty and end it once and for all. Opportunity lies within the fine print, so learn to read it.

Here are some good past articles I've written on how to make the tax code work for you: Timeless Tax Moves, Zero Tax Liability, Perks and Benefits, Work/Shop Tax Free, Underground Economy
For others, just enter "taxes" into the blog search bar. For all, just learn how to closely examine and understand your tax forms--1040 holds the most clues with the least restrictions. Start adding "A" and "EZ" after it, and you restrict your realm of possibilities. It's called a code for a reason--learn to decipher it!