Thoughts on Federal Taxes

With a new President comes complaints about some everyday topics like taxes, jobs, health care, retirement / social security, other government programs, etc.  One topic I’d like to touch on just briefly is taxes.  When taxes go up for any bracket, there’s uproar.  One bracket that I’m for going up is for the “rich”.  What defines the rich?  Well it depends on who the President is.  But a married couple with a combined income of $10M is a couple I don’t feel bad for paying more taxes.  Yes, paying 50% sounds like a lot, and it definitely is, but can you not live with “just” $5M income per year?

For the average household, which I’d consider a household that makes $100k or less per year, an unexpected expense of a few thousand dollars can really put a damper on spending for months or the rest of the year.  While those who make even the $5M figure can quickly get over that expense.

What I’m trying to say is everything in life has pros and cons.  In terms of a typical household and the rich, pros of being rich is you can buy pretty much anything you want, you don’t have to work a traditional job if work at all, you can go on dream vacations at a moments notice – so many pros.  A con is you have to pay more in tax.  While yes, even if there was a flat tax, if you make more you’re paying more tax in terms of dollars, but I’m not opposed to paying a higher percentage of tax for the rich.  I might be biased because I’m so far away from being classified as rich, but I feel like even if I was, it’s just something you have to calculate in your budgeting.

There are a lot of cons to being in the average household income level, but one pro is paying less in tax.  I think the higher tax for the rich kind of evens out the playing field, at least a little.

I really think the rich should APPRECIATE where they are financially and be smarter with their money if they are so concerned with their tax bill.  Or talk to a tax professional for tips on what to do with your money – open businesses, get into certain types of investing that have low tax obligations.  There are plenty of things you can do.  The rich always find a way to pay less percentage or dollar in tax than the average household, at least that’s what I hear, from using techniques like I mentioned.  It makes me wonder are the rich actually complaining about higher taxes or is it just what the news talks about to stir up some commotion?