davecolene0606
Member
Is it just me or is the myth that wealthy people don’t pay taxes absolutely ridiculous?
I am sure many of us that own Tesla’s are in the “wealthy” category. Am I the only one of us that pays a large amount of taxes?
Also - if/when I do sell my TSLA shares at a healthy gain - Uncle Sam Will again get a healthy cut of my gains.
There’s a level of wealth at which it becomes worthwhile to employ multiple methods to retain as much income as possible. That level is where real estate pass through type entities are formed along with S/LLC type entities where income is massively shielded from taxes. Additionally, the sources of income aren’t primarily from wages at this point and so are subject to lesser true rates. At this level “losing” money on ones entertainment becomes useful as well.
While the gross dollars turned over to the Gov are big numbers, as a percentage of the total economic activity generated it is FAR less than the paupers earning say $500k-$1.8m per year from employment.
As an example, one may have noticed that in the Q3 letter we discovered that Tesla’s effective tax rate was 6% which is higher than many corporations pay.
It’s about scale, and 99.6% of US folks don’t hit that mark.
(PS wait to we see our bills this April, like every deduction a little guy could still take is gone and all year long they’ve been withholding less from your pay check to make you think your earning more. Ruude awakening coming...)
Fire Away!