Posted by Financial Samurai 1, Comments. Americans are rich by world standards. The data comes from the IMFand the World Bank and CIA World Factbook collect and corroborate similar data. Even if you end up being the most mediocre producer, you are still miles ahead of much of the world.
Good to know that many of you are doing well. If only we could get all American wage earns to pay some taxes, it would go a long way to help shoring up our budget.
We are all in this together! An increased standard deduction for those over 65, and an exemption on part of Social Security earnings, means that many older Americans pay no income taxes. Please remember though that the elderly have paid their dues through decades worth of federal taxation during their careers.
This leaves us with a low-income group that may have made some suboptimal decisions such as having children while not being able to support themselves.
Perhaps having multiple children on a low income is not ideal. But, how do you deny passion? Half the battle is just moving to a vibrant location such as the San Francisco Bay Area where billions of dollars are flowing in due to technology innovation. Why not take advantage? Spend some time online understanding global wages from our biggest competitors in China and India.
In order to maintain our incomes, we must constantly be updating our skills. There are plenty of six figure jobs out there for the taking. You just need to have the desire, motivation, work ethic, and perseverance to get there. There are six figure earners in practically every single industry, including the non-profit industry! Back to my point where if everybody earns a million dollars a year, nobody is rich. Alas, the rich pay almost double what they owe.
If you get to drive on interstate highways, you should pay taxes. We are in the technology and internet age now. If you really want unlimited earnings potential, you might as well be your own boss someday. It costs so little now to just start your own website so you can brand yourself online, connect with like-minded people, find new job and consulting opportunities, and potentially make a healthy living online.
Take a look at this income statement example of a friend with a simple personal finance blog. Click the graph to learn how to start your site within 15 minutes. The income possibilities are endless! I started Financial Samurai in as a hobby to help make sense of the financial destruction.
Bluehost is optimized for WordPress and has great service and speed. Everybody should start something on the side. The key is to adopt an abundance mentally and just try. The things you do now could change your life forever! The other action item wealthy people do is track their net worth. You can only truly optimize your wealth if you know where all your money is going! In addition to better money oversight, run your investments through their award-winning Investment Checkup tool to see exactly how much you are paying in fees.
Input various expense and income variables to see how you stand. Try it out yourself for free. Your future is too important not to take it seriously. Sam started Financial Samurai in during the depths of the financial crisis as a way to make sense of all the chaos. After 13 years of working in finance, Sam decided to retire in to utilize everything he learned in the business to help people achieve financial freedom sooner, rather than later. Sam is a big advocate of using free financial tools like Personal Capital to help people grow their net worth, track their cash flow, x-ray their portfolios for excessive fees, and plan for retirement.
The more you know about your money, the better you can grow your wealth! You can sign up to receive his articles via email every time they are published three times a week. Sam also sends out a private quarterly newsletter with information on where he's investing his money and more sensitive information. February 3, at 8: February 3, at 9: Please explain why you think working more than 40 hours a week to get ahead is moronic. If you work more than average, what do you think happens?
February 9, at 3: February 21, at 7: May 20, at 7: November 30, at January 26, at 6: In the average urban areas, the cost of living still outpaces minimum wage rates which allows this.
February 21, at And that has always been the case in large cities. Good Looking Loser says. June 17, at 2: January 12, at 9: Making all that money just to come home and go to bed? You have to have free time to enjoy outside activities.
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January 19, at 8: You could work 80 hours a week and still not even work half the week. February 11, at 7: I just wanted to say sleep is required in humans. The number of waking hours in a week minus 8 hours of sleep times seven days a week is hours. May 1, at 4: In the words or Ari Gold: Your quote reminds me of this post: August 30, at I would feel lazy. December 12, at 3: August 2, at 7: Seriously the wealth gap is greater than it ever has been.
If you want to get ahead you have to be motivated and willing to spend time outside of work learning new skills though. I spent a lot of my free time learning programming and computer science and now I am lead data programmer at my print company.
August 14, at 9: November 15, at 9: You are right about government responsibility. I lived in a city where artist could be paid by the government to paint horses and drains in the city. Instead of government grant money used for this it should have been part of a course curriculum for an art degree at the local University.
Dumbest remark I have ever heard. If you work as an artist you eventually have to get paid for some work, be it from the private or public center. What is the point of sending more artists through college if there are no jobs for them once they are finished? And, art is one of the few occupations that people can learn on their own if they are blessed with talent, ingenuity and work hard. November 17, at 4: I only see one problem with your comment.
The competition for jobs is due to the fact that more individuals have undergraduate degrees because of for profit and online schools. October 27, at 8: I rent apartments in a poorer respectable area of Milwaukee. Now college grads in many fields in their thirties are finding they are delivering pizzas and waiting well into their thirties. Experience has taught me. Grind it out and earn what you keep. When you do that, gaps are going to show up.
Not everyone has your hustle. This is a good thing. Be comfortable with your place in the world. September 10, at If one loves the work they do, then we do more of it and chances are make no more for the additional time salaried. And we should be pushing for an international minimum wage as well. September 10, at 5: Europe is the best! Check out both posts. April 3, at 6: Working hard, but also having a job that pays well. It seems likely that the uneducated will be squeezed more and more as they compete with overseas labor and automation.
Thing is…before you had your game tight, think back. When you were grinding it out for little to no compensation did you EVER in your wildest dreams think you would get to the place you are?
One day I just thought…I need to do something. I have got to step up my game. Then I started looking for ways…. March 5, at 4: It took me 7 years. No assistance, and no complaints on my part while I watched my contempories piss away the dollars given to them to go to school.
I now pay more than 10x the average income in the US in taxes alone. This is not to toot my horn. It is only to say that anything is possible if you work at it. I realize there are physical and other limitations that hinder many. That is what the system is for. All I know is that hard work and gratefulness goes a long way.
I also know that the entitled mindset in the millennials that I interview regularly is sickening. March 5, at September 14, at 6: Terrific, and for those that think getting an education is too expensive, please quantify the cost of ignorance. October 7, at 3: If you do not want to work hard, I suppose you should be happy what you got and do not talk about fairness when you see others are way ahead of you in terms of wealth. I was on unemployed not that long ago, I enoughed work 40 hours a week and think absolutely nothing after work.
I lost my job, things turned around. I made at least 3 times my salary at my old job, and it keeps growing.
Salary Sacrifice – how it works » Industry Super
But I have worked about 10 to 12 hours a day, 7 days a week. My daughter grows up on her own and she is the best student in her high school. You can not get everything on your side. You get something and you may lose the other.
Pick what you want. October 18, at 4: Then move to Denmark. If you want to get ahead, you must either win the lottery or work more than 40 hours a week. If you expect those things, then expect to work more than 40 hours a week. January 6, at 4: So before having opinions lets spent time on education to see if thoughts wished really match with reality.
Yes it took much more than 40 hours to be exact hours a week an 80 hours min. So it is still very possible only the person should have the desire to want to get out of poverty. Yes it takes time a lot of hard work but American dream still exist today!
If you want to college bad enough yes you can with loans, it will require you to work jobs during but it is very possible! Oh in the meanwhile i took care of older parents and a younger sister whom i also helped and they did not received ANY government benefits. September 16, at 5: I agree with the article. I an an auto mechanic, I work a little over fifty hours a week and make just under thirty thousand, which in my area is actually a good wage.
I used to think that the rich should pay more, but in the last year ice actually come to realize that they pay the majority of everything. But more than forty is not a sacrifice when you want to earn more. The only reason that I an where I am now is because I spent a few years working sixty or so hours a week at crappy jobs. I used to work twenty something, but at that time I was practically homeless. I feel like for the majority of people in my situation it is the result of poor choices made in the past.
November 28, at 7: As a small business owner. I would highly recommend starting your own business. In fact I would turn the whole business model of auto service on its head and be mobile without a shop.
That way you could perform routine maintenance and diagnosis at their house. That would be a great time saver for a lot of people. You will break down your body before your time,go crazy, drive others crazy and perpetuate the myth that you can pursue happiness via over work. Why do I think this? I am living proof. I thought I could be wonder woman. I went through two marriages, and now my health has failed, and all before fifty five. Check out this latest post: Income Profiles Of Financially Free People.
In the thirties and the forties people work more than 40 hours a week. Although one person was the bread winner of the house, generally. And the amounts of divorce back then in households was miniscule compared to today. February 18, at 2: Divorce was lower in the early twentieth century and before for a myriad of reasons, one of which was complete and utter dependency on that single-income earner by the other members in the family, with little or no laws in place to protect those dependents in the event of divorce.
March 11, at If you do work more than 40 by getting multiple jobs they start to butt heads. The idea that all you have to do to be successful is MOVE somewhere. Higher wages equals more spending power.
More spending power means more economic freedom more economic freedom means the ability to support more small businesses. The only way for there to be a healthy thriving economy is for the BOTTOM to be able to help pay for innovation. Income Profiles Of Financially Free People — Lots of examples of people hustling, and not complaining. July 8, at 8: The one way I personally found to get ahead is to run my side gig in addition to my day job.
I have additional income, and it is diversified. If I ever get fired from my day job, I now have a backup. September 9, at 5: It depends how much you make an hour. So I was obviously working more than the average person but making way less. November 28, at These comments are hilarious. Apparently I bucked history in a moronic fashion: February 11, at How do you earn a month at mcdonalds?
There are no McDonald that hires anyone for more then because after that you are to earn k health insurance other benefits. No mcdonalds or even Walmart for that matter does that. Your lucky to earn 60 hours for two weeks. February 11, at 6: March 5, at 9: I hope you meant because a month isa year. April 5, at 9: If you want to raise a family, you better make x your current expenses — that might mean making sacrifices — BEFORE YOU START to raise a family.
That is — if you want to be responsible to your kids by SETTING AN EXAMPLE. Btw, you need to sell yourself and believe you are worth A LOT more than what you are currently getting paid. Some of my friends were working 40 hours a week while still in HIGH SCHOOL — because they were determined to become doctors and DOING WHATEVER IT TAKES. April 12, at 9: Yes, sentences like this made me think this was a satirical site: Are you saying you are POWERLESS to earn more?
There is an entire gig economy out there with ridesharing, tasks, etc that help anybody with desire to earn more. Mixed Emotions Income Profiles Of Financially Free People Blogging For A Living: How Much Can You Really Make Online? April 13, at 3: Many Europeans work way less hours than Americans and are more productive and happy Germans for example. April 13, at 4: I went to Europe for a couple months to do research, and I wrote about it:. I think s tarting your own site helps increase your chances of freedom.
The Libertarian Dictator says. August 11, at 5: This entire article is a load of hogwash. I work 24 hours a week, 4 x 6 hours days from home. You seem to forget that some industries like mine programming have to compete with the entire world. August 11, at 6: Why Tough Love Is Important When It Comes To Your Finances. Read this one if you want an easier life: How To Build Emotional Intelligence. March 1, at 3: Beware, beware jumping to political conclusions about the relative tax contributions of money classes in the US to the society at large.
First off, I offer me as an example of just how misleading things can be:. I am probably in the peak years of my income generation, but I funnel it through a business.
They have been for years, and will continue to be zero for years. Moreover, inheritance tax planning will likely hide my assets for two more generations. In 70 years my grandchildren will pay a hefty income tax that will buff the charts like the one in this article, but the years of untaxed compounding will be hidden. Shall we use 10x appreciation? March 1, at 5: April 16, at September 30, at 7: November 3, at 1: November 5, at 5: Or are you going to say the report is a lie?
You would also know that lying in them is a Federal crime. Of course, there is no punishment when the Huffington Post does it though. November 18, at 1: Fermi, whoever THAT is, is obviously aghast at the idea he has been TAKEN by what he THOUGHT was a fair system. November 18, at Things are NOT FAIR. November 19, at 7: No one has provided anything substantive. FS sounds like he understands the tax code very well, hence his poignant question. Those who make more not only pay more but pay at a higher rate.
But there are strict rules around that, it only goes so far. I am very familiar with them. December 13, at Loopholes must be filled and everybody should pay their relative fair share. But that is not enough, in a wealthy country like ours the basic needs of all should be secure.
The ten top earring countries mentioned give a lot more security to their citizens then we do, from end to beginning, nursing homes are heavily subsidized if not free, so is medical care, education, and infant care. One cannot thrive with a Damocles sword hanging over his head.
Once the playing field is level and the sword seethed then entrepreneurship and hard work definitely more then 40hrs a week, at least in the beginning will have a much better chance at rewarding the applicants. February 12, at 5: If I have no deductions, family of 4 and earn 26, I also according to this article pay no taxes. Duh…never use AGI in any comparison, it is a sure sign you are rich. Jay Thinking Wealthy says. Partnerships are beautiful creatures my friend! Hire a tax lawyer.
May 17, at I doubt this is a real post, particularly knowing something about the tax code and the statistics in question. Or is it essentially real estate appreciation that is adding to your net worth as apposed to cash income? October 28, at 7: The sad part is, people hear this kind of thing and they believe it.
November 14, at 3: November 15, at They determined this and other findings through direct interview of a large sample, not the typical meta-data analysis of broad reported statistics. Meaning this fact will not come from IRS data for example.
And it makes perfect sense as well in case someone wants to raise the BS flag. They not only likely have jobs where this is more frequently the case e. By doing so they are able to obtain or maintain greater benefits from the state. You can hardly blame them, they are acting rationally perhaps not morally.
January 22, at 7: This is absolutely true. February 9, at 8: They would get buried in an IRS audit. The expenses must be business related. February 28, at The expenses he lists are legit, but only the portion directly related to business. Which means you have to have records of what trips were for business, what were not. But, if you want to go to Hawaii for a vacation, just make sure you attend a conference there — and deduct the airfare, hotel, meals, etc. If you own a business, nearly every dollar of the Hawaii trip is deductible.
But, there are tax incentives against working for yourself, as well. For example, you must pay the self-employed portion of your payroll tax — which would be covered by an employer. My daughter baby-sat last summer to earn money for college. February 28, at 1: April 10, at Someone who is 30 and has that much money has the most important asset in the world, TIME, to build on that wealth. May 20, at 6: May 21, at Their highest fee is 0. October 30, at If someone holds stock till death and extremely wealthy the fair market value of the stock is included in the estate of the deceased.
Good estate planning will contribute that to a family partnership or another entity and gift the partnership interest at a discounted rate prior to estate issues arising.
January 14, at 1: And kudos to YOU, Sir, for being honest. I can NEVER get angry at someone who USES the system the WAY it was intended. But, until the electorate is given HONEST currency exchange rates yahoo uk, we can NEVER realize just how much or how LITTLE money is actually being paid by the can you make money with healthy vending machines 1….
I want to see HOUSEHOLD INCOME become the measuring stick. How much did you TAKE IN this year? And how much did you receive in refunds? The remainder is how much you actually paid. That, my friend, is the only honest picture, from which we can judge, whether people are paying their fair share of TAXES.
In the END, the ONLY fair tax system is one where the household income is computed with the SAME percentage for everyone. What a DREAM one that will never become reality. November 18, stockbrokers graduate programme 2: That kind of thinking is what is saving the rich!
We have GOT to stop work from home jobs folsom ca they need to pay such ridiculous rates.
Many pay very little actual cash. The thing that has to happen is the rate structure has got to change. That is the only way to insure everyone pays SOMETHING. Flat tax rate, no deductions. If you Jones meat market woodstock illinois to spy option day trading your money, because you have more of it, it will help the overall economy.
But no more, where people with billions, get to keep all of it because they spend it correctly. November 19, at 6: Just check the IRS website a platform for trading binary options instant withdrawal making unfounded remarks about how much people actually pay in taxes.
That is effectively what the tax is based on e. May 20, at 8: How to buy gold etf in singapore if Eric is somehow suggesting that there is some kind of grand conspiracy how much does a professional bowler make there wherein the wealthiest in our society are somehow escaping taxes in significant numbers and as such do not show up in online stock trading advantages disadvantages data… well, I wish someone would provide a little more proof as apposed to some anecdotal example.
A good exercise for everyone is to hang-out somewhere that successful people gather, say some bar in a very nice restaurant in a wealthy neighborhood. Then just politely ask people about themselves and how they became successful, they will be flattered. Ask the same questions, but do it ever so subtly as to not offend. Then just compare the answers. May 21, at 9: If more folks can be willing to open up their minds and look to see how wealthier people got to where they are, instead of just shoot them down for being lucky or whatever, I think more people will intraday trading tips educomp wealthier!
FS, thanks again for a well balanced and objective website on a subject money and wealth that can be so contentious. And much of the mystery, hysteria and misinformation about wealth creation currency exchange rates yahoo uk due to this false egalitarian ethic that permeates every aspect of our society today.
Yes, everyone is entitled to equal opportunity, but that NEVER produces equal results and never will — simply because individual people are in fact different from one another and that leads to different outcomes e. I agree, I here hear people say penny shares to buy the time the rich pay less in taxes, they use Warren Buffet as their example.
I ask them to point me prediction by bejan on stock market the location in the tax code that the rate decreases. Then they state well he makes all his money on investment, and capital gains is lower, well yes, but its even with capital gains the rich pay more on capital gains. The fact is the press has done a great job of saying the rich are bad, corporations are bad. Maybe people should be upset with how the government spends the money they takes from people.
November 4, at Also huge corporations can move to Ireland or other off-shore locations to enjoy tax benefits while still operating mostly in the US. November 5, at 4: Jacob, simply check the IRS data, it belies what you say. And you are confusing marginal rates with average rates, you are comparing the top marginal income tax rate with a capital gains rate.
Moreover, stockholders own and are responsible for the company in all regards; the income, the cost, the profit AND for the taxes. And as much as you would like to believe companies run from America to incorporate, the number is quite small by comparison. April 20, at 5: The top capital gain rate is around 23 percent. The capital gain rate for people in the 15 percent bracket is zero. A non fractional shares of stock sell couple with head of household closer to 90 k if both have their own portfolios.
If the married couple have itemized deductions and exemptions they could potentially take home close to 90k to k before paying any forex gain code free download. If this couple were running a business they could deduct their BMW lease payments, health care costs, how to find institutional trades of a stock other benefits to help this couple have a break even business.
Furthermore this small business can offer a k plan and Hsa plan to put away another 22k away tax free. This couple would be in the top 8 percent and pay no income tax. Furthermore wealthy investors pay zero dollars on the appreciation of their assets which is arguably income in a real sense. I hope this helps with forex training course london zero tax part…. Eric the Viking says. July 12, at 9: You would never know by looking at us that we have an eight figure net worth.
We have no boats, motorcycles, or fancy cars. The real problem will be when wealthy couples like us step out of the work force a decade or more before normal retirement age because we are tired of working for the government months out of the year. Serious tax reform is needed if this country is to survive another years. It is one of the major reasons for our decision to retire in the next couple years. July 21, at How much money does one actually NEED?
September 13, at 1: There is a HUGE difference between an 8 figure NET WORTH which is what was stated and an 8 figure INCOME to which you alluded. May 20, at 9: The answer to that question is unique to each person. The tone of your comments has the odor of socialism, and that, my friend, is not a good path to financial freedom. February 18, at What do you do with your money?
Your take home is over k a year and you have no big material items. You either make lousy investments or like to sit on money and whine about paying taxes.
May 26, at 8: July 19, at 5: I worked for the IRS in data entry for awhile and I can personally attest that the wealthy are often paying less taxes. I hand entered and coded paper tax returns and was shocked how a family of 4 making k would frequently be paying less than someone making well over k. I remember distinctly my shock and outrage after I saw the pattern emerge.
July 22, at 2: When you said rich paying less, I would assume you are saying in terms of effective tax rate, not the whole amount. October 3, at So it is not surprising that in some cases an earner with less AGI paid more than a higher earner simply because they did not withhold appropriately. After all, we are debating with a data entry clerk at the IRS. BOTH the effective rates and dollars paid GO UP with increasing income bracket.
Of course, there are unique cases where you can compare individual filers and this is will not hold true, partly because our tax system is so complex. But on average which is what we are talking about higher income equals a higher bracket AND greater tax paid. August 27, at 3: This is a tired talk show theme. Take a look at effective tax rates for all taxes combined, including state, local, sales etc. And you will find that most poor and middle class are paying a higher rate than the wealthy.
August 27, at All Fed, State and local incomes taxes are progressive or at a minimum flat. Sales and transactional taxes nasdaq stock market fee schedule what they are, those with greater income spend more or have assets that are taxed more. Moreover, the lower income brackets not only pay fewer taxes if at all on a net basis but often receive direct dollar benefits e.
September 30, at 8: September 19, at Do you mind if Calling options s3 quote a couple of your articles as long as I provide credit and sources back to your website? My blog site is in the exact same area of interest as yours and my users would definitely benefit from some of the information you present here.
December forex sbi, at 4: The article starts off by talking about Averages which is very deceptive. It should be using the Median. The median income of those 10 people is 1.
December 24, at 1: The article looks at average how much money do chemical dependency counselors make by many income brackets, so the implications are much more telling than a simple median.
December 24, at 4: This would eliminate the need for self reporting, and the majority of the IRS, as we already have a sales tax system established within every state.
This would how did the 13 colonies make money for revenue to be generated from all who consume products within our county. Visitor, criminals, illegal aliens, businesses, individuals, you name it, they are all included as they all consume goods when within the United States.
This would stop punishing income earners for earning and saving, while requiring everyone to participate in the tax program. December 25, at 6: First and foremost, before we even think about fixing the tax system, we need to fix the SPENDING system. It we stop wasting money on STUPID thing, there would be plenty. You enforce it by not allowing ANY government hiring, ANY pay increases for government employees including step and seniority increasesNO new government programs or renewal of expiring ones, and Congress and the President and their staffs get a pay CUT of the same percentage that spending exceeds revenue.
December 26, at And is an ethical methodology as apposed to the system of appealing to special interest groups we have today. January 14, at 2: A system rewarding you for NOT spending is probably not the best way to foster our economy! January 16, at Perhaps learn a little more about how a market works. And if it takes interest in it to create demand, go out and create that interest. Stop asking government to execute the will of a small minority who think they know best etf trend trading stock gumshoe it comes to energy over the desires of the majority.
If you like green, fine, go buy it. March 25, at That the market will proactively solve our problems via supply and demand is a fantasy.
There is a huge demand for the cure of cancer. Certainly there is a demand, no? June 3, at 2: Your example of cancer confuses me.
Has the billions of dollars funneled into cancer research by the US government turned up a cure? Can I use that fact to say that the government solving problems is a myth? The free market wanted a better way to transport goods from China to the US. It created super freighters. The free market trading forex china a better way to use American cotton and the cotton gin came about.
It wanted a cheaper way how much money can i salary sacrifice into super to kerosene to light up our homes and the electric light bulb was funded. Time and again a demand for something has created funding for it. Both public and private. Can you find me an example of something having a huge demand and getting no private sector funding? November 12, at 8: Once upon a time, there was market that could product agricultural goods at a very efficient and profitable rate, created wealth for many, and established a robust international trade network.
It was called slavery! Do they always maintain a fair balance, off course not, but neither does the market. You only need to look at China to see what a largely unregulated market looks like.
Working Forthe Mann says. April 13, at 9: You are an idiot. Use tax has been proven time and time cashing a fake cashiers check to be regressive. The poor spend most of their income on food, shelter, clothing, necessities.
There is little savings, less home ownership. December 26, at 1: There is one other group that pays no federal income tax: This post explains it fairly well: You really should read the article carefully for one, it contradicts itself. What maters is your free cash return. December 26, at 6: December 29, at December 29, at 4: Capital gains are taxable events, true.
Certainly, following the path that most people do would result in no taxes today, but eventually jones meat market woodstock illinois gains will be taxed. Postponed as you say. By harvesting the gains along the way, the net tax is zero, both today and in the future. This is the result of the so-called Bush Tax Cuts and their addition to the permanent tax code as part of the American Tax Payer Relief Act of The lunch is definitely free.
Here is a concrete example: January 4, at 9: The income is important but not the most important. The purchasing power shows the real thing. Maybe in a speculative industry. Most of the engineers in US with a BS or MS degrees do not make that money. January 2016 email addresses of stock brokers in kuwait, at Have a read of my latest post: That is just crazy speak Johnny!
Those are extraneous examples. You low wage earners just need to uproot your family and move to a city with high tech jobs…not that you have the skills or education to get any of those jobs…. A condescending article that ignores the realities of life for many in the US …. At K saskatchewan livestock auction markets year, you still expect sympathy? January 22, at 8: How about getting the skills and education to get those jobs?
The internet and knowledge is essentially free now. April 27, at Nobody needs to thank anyone for paying taxes: February 4, at 7: At which time I would then use it to purchase a house. June 9, at 1: Buy a t-bill or park it in a high yield savings account. DJ an economist says. March 21, at This article is somehow misleading.
This article does not show the definition of this terminology and relates it to the average income of each layer. My understanding is that it is the bottom line of each layer, from which the next layer begins.
They are compensated with stock options and other bonuses as well. Check this article in Forbes. Tax burden share can have implications, but it is also misleading. By the very definition of poverty line, it means the subsistence income that enables poor people merely keep their subsistence.
Should such people pay income pump and dump in stock trading as well? They may not pay income tax, but they pay the same indirect tax when they buy a Big Mac. March 25, at 4: I correct the mistake in my previous comment. October 18, at 3: The indicator for binary options is not redrawn have many tools to work the A part so the I part looks lower than it is.
Another perspective, it will take the 15k folks over 61 years to make the amount the k folks make in one year. Do the K folks compress the equivalent of a long lifetime of work of the 15k folks into their work year. I know many white collar professionals work very hard. They also surround themselves in luxury while they do it. See which he finds harder to do. Wealth is made from actual work. That wealth is created the day trade forex system review the lower income workers who do actual how to cheat on virtual families 2 android. It is utterly absurd to suggest, in our system, enchanted learning money coins way work is currently valued, that everyone CAN get ahead.
Only a few can. If everyone in the US had a high IQ and a PhD, there would still have to be hotel maids, burger flippers, slaughterhouse workers, farm workers, factory workers, baristas and on and on. Stop pretending that they can if they just work harder or smarter. What needs to happen, more than tax reform is a radical reform in understanding and appreciating the value of work.
Menial labor is required for our society to function. It is required for the wealthy to be wealthy. Until then, you are a horses ass to suggest it. What a great post. Every agrees that the top earners pay more in absolute and relative terms than those who are poor. A progressive tax system is a fair tax system. We must strive to continually improve and simplify it.
But as a tax philosophy, it is much more fair than a flat tax. On the spending side, all the rage is on small items like scientific research, government salaries, arts funding, etc. Serious cuts or reforms in these items will need to be made, but in our political climate, would be impossible.
March 30, at 6: US consists of 2 category of retirees. Ones how much money can i salary sacrifice into super by pension, and ones who are not. The web is full of articles on how K is same as pension, when it is NOT. It is high time individuals are given more choices to save, with no pension to rely on, in most of corporate world. April 15, at 5: How can people be so blind. May 20, at 2: May 20, at 3: Or, your Range Rover or any luxury SUV! June 2, at Actually, I only WORK in SF. Assuming that I can afford anything more than my already month-to-month livelihood is moronic!
This is coming from a graduate of a masters program at one of your private institutions you speak of. June 3, at How does that work? I donate to my local SF library and volunteer for local community events. How much do you pay in taxes and what do you do? Planetary stock trading just spent 6 months putting together The Best of Financial Samurai eBook to help empower people to lead better financial lives.
If you buy futures broker canada, all proceeds after expenses gets donated to a charity that help keep Oakland youths off the streets and in the classroom. Stocks or Real Estate: June 3, at 5: You may or may not have thought about the difficulty in doing such a thing even though it is good advice if someone can afford it.
This limits peoples possibilities to getting a second job which since most companies prevent you from working a second job in the same field can make things difficult. Combine that with the fact that most of these types of people are living paycheck to paycheck and unable to save up the money necessary for a move to a higher income area and working those area may actually cost them more in transportation expenses then factors affecting put option pricing they are earning extra.
This is part of the backlash that so many people with money receive because of comments that would be sound advice for someone not struggling just to get by. The worst part is that if you compare payment between jobs a couple decades mock stock market software to jobs now the low income jobs, adjusted for inflation, pay roughly the fii position limits in exchange traded interest rate futures (irf) to within a dime or two while as you advance up the pay increases between the times steadily increase.
There is no easy solution, and everybody has a different set of circumstances to deal with. The one thing we can control is our effort. Never fail due to a lack of effort. Fail due to bad luck or circumstance, but go down fighting until the very end.
Work on a side hustle, an X Factor from 4am-7am before work, and then from 8pm — midnight after work. The worst is REGRET for having never tried, and having never tried hard enough.
Home Venture Group says. August 25, at 8: I could not agree with you more. If you want it bad enough make a plan. Read more, find a mentor, work harder, side gig, find something that is scalable and GO FOR IT!!! The only limitations we have is in our mind. June 4, at 8: When I was getting through college I always considered a six figure salary as true wealth.
Forex vs binary trading pinnacle of success. Once you start to grind through your career you begin to realize how many income opportunities there are. It just takes determination and diligence to realize your earning potential.
July 9, at 5: How Is that possible? Step one — give up your American citizenship and take up citizenship in countries where there is no capital gain tax. There are really nice places to live where capital gain tax is zero. Then set up a limited liability company to expense away all your taxable income.
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Engage in as many businesses or professions that generate wealth thru capital gain as you can. There are many different options to suit a wide variety of interests. You just need to do some homework. James Brown Financial Freedom Reverse says. August 4, at I agree that everyone can earn the sum of money he needs or wants. Even more than 40 hours … as noted. So we must try to answer that question and improve our daily life in all areas, including finance by following the Pareto Principle.
Because I always prefer simplicity and productivity. September 15, at 2: This article is disingenuous. Median income is a much better indication of how people are faring. November 5, at 6: You make it sound like if you just work more you will suddenly get wealthy. I was working three jobs, leaving the house at 7 a. I know people who have families who work that hard, but that really strains the relationships.
When my son was born, my work ethic changed. I spent less time at work, but tried to be more efficient. I also worked from home more frequently to offset the time I miss due to child rearing duties my wife also works FT. A CEO is the only job where gross incompetence can be rewarded.
November 14, at 6: If that was the case we could privatise everything. The reason one supports state intervention is because we realise that the system we grow up in inherently favours those born in richer areas and at birth no one is by any means given the same opportunities. Those are the kids that will end up in high paid jobs, and those that grew up in poor areas will, statistically, end up in a worse situation financially.
Is it right for us to blame someone for having poor parents and just let them deal with that situation? The bigger the wealth divide the more we pull apart society. It creates a class war. You are givendollars to share between them, who would you give it to? Equality would have us split the amount evenly, but could we perhaps recognise that that amount of money means far more to the poor person? It means more in that it allows him the means to support himself to a decent standard.
Food for him and his children, security of knowing his family will have somewhere to sleep or that he might put his children through college.
November 17, at 1: Payroll taxes, property taxes, sales taxes, import taxes, gas taxes, cigarette taxes etc… Some Americans may not pay federal income tax but they still pay taxes. We have graduated progressive tax rates for annual income because people need each marginal dollar less. The other overlooked aspect of the economy is aggregate demand. The reality is that poor people are far better job creators than the rich because they actually put the money they make back into the economy.
When you talk about CEOs making years worth of work, that is the top 0. I ncome Profiles Of The Financially Free. Jeremy De Paz says. December 5, at 3: There are lots of reasons why people in poverty stricken areas do not advance economically. For one the education they get is usually very poor.
The list goes on and on. Income inequality is not a product of people not wanting to work hard. I encourage you to visit a school in a poverty stricken area. See the culture, and how keeping crime out of some schools becomes a bigger focus than the education a lot of times. December 5, at 6: Try Working A Minimum Wage Job As An Adult. January 19, at 1: Questions are, how much of the federal tax is consumed by the states to fund state and local programs?
If you want to really know you are paying an actual federal tax then 2 things you need to do. February 7, at 8: How do we figure out who gets paid what when some are simply lazy? Can Bernie Sanders or one of his followers tell us more details about his plan? Who decides what will be covered under this medical plan? What other services will be afforded to young people with babies?
Older parents that may need some help in their homes? What do we do with older Americans that can work, would like to work, yet can only work part-time? What happens when people want to live in nicer, more temperate areas vs. Deserts and colder areas? Will this not stress the environment? February 8, at 8: A cruel heartless world can get pretty cruel when it has to.
I focus on quality instead of quantity. I work smarter, not harder. Incidentally, it helps tremendously to love what you do for a living. Too many people work like dogs their entire lives, and at the end of it have nothing to show for that hard work. If more money makes you happier, gives you better well-being, then great — go for it.
Thanking the rich for paying more? Have you ever tried to live on less than 30, a year? Yet you think they should contribute MORE in taxes? The people who pay more in taxes are the people who can AFFORD it — who can actually live and still prosper while paying more. The utter ignorance here is astounding. February 22, at 5: March 3, at 2: Many big corporation leaders spend a portion of their money lobbying for laws that would benefit THEIR companies, not for the people, so they can keep making more money.
And at what cost? Killing the environment and the lower-income. April 10, at 8: It almost seems like it was taken off a Wall Street Journal editorial by some right-wing corporatist hack no offense.
In addition, the doctor actually contributes to society. And what exactly do they do, aside from moving big numbers around from one account to another on a computer screen?
With the recent Panama Papers scandal, the obviousness of big companies and rich elites not paying their taxes was made clearly evident for all to see.
Ironically, you can rightly argue the richest are NOT paying their fair share of taxes. Why should a company be able to undergo corporate inversions and restructuring in order to avoid paying US taxes, when the company, for all intents and purposes, was created and flourished in the US? The poor and middle class are on the hook for this, and so much more.
April 28, at 6: You need to find a demand for something, and supply it… You are either helping someone else follow their dreams or working on following your own. In order to get ahead you have to be above average and do more then the average person…. April 28, at 7: Thanks for sharing your thoughts! I used to get in at 5: Got sick more often. But it helped me break free at 34 due to aggressive savings and good income.
The Average Net Worth For The Above Average Person. October 23, at 3: The problem with this idea is the false notion that starting your own business is the only way to survive in an American economy. Owning a business is fantastic, so long as your business is not overburdened by BS regulations and taxes, so much so that operating a business is choked financially. Unfortunately that is something of an American past-time. This fits pretty close to Marxism where only business owners, Wall Street crooks, and lazy Zionists are entitled to a good life.
September 26, at 8: September 28, at 3: And of course, working that sort of schedule leaves you to tired to do much to improve your life. January 3, at 2: Everyone should have skin in the game, but expecting to erase the deficit on the backs of the poor seems pretty callous to me.
Poor and working class people already pay taxes well and above the federal income tax: State taxes, property taxes, licensing fees, sales taxes, gas tax, etc…. This includes those who pay NO federal income tax at all. September 29, at A second option is to concentrate at getting better at what you do so you can command more money per hour and work less.
I have a small painting business primarily residential repaints. I worked hard at it and worked long hours for many years. I never felt I was getting ahead even though I did have a good life I just seemed to miss too much of it while I worked. I set a goal to earn the same relative amount while working far fewer hours 20 hours per week I set about doing this by concentrating at being better and faster, raising my rates, and increasing the number of bid opportunities so I could be more picky about the jobs I took.
It took me seven years but three years ago I met my goal. I work around hours per year and have an income that allows me to own two reliable vehicles a 3 bedroom one and a half bath house on 8 acres and the time to enjoy it. October 26, at 9: I have a big issues with those who complain about their financial position.
People in my generation seem to have forgot what this country allows us. Freedom and democracy yes, more of a republic allow you the privilege to work and fight for your dreams. After putting myself through community college, while working 40hrs a week, it became clear that I needed a 4yr degree to achieve the lifestyle I wanted.
I went out and obtained a student loan to cover only the cost of tuition and books. Only had to take out around 20K. I roomed with a few other guys to save money, had two jobs totaling around 53hrs per week I was making over 3K per month in college!
My only credit card was maxed out and I was dead broke. Instead of giving up or reaching out for a hand out I put my head down and obtained that second job. Stop complaining and work for what you want. You get out what you put in. November 21, at 6: Blogging For A Living: How Much Can You Really Make?
You are leveraging an angle, and if enough people do that, the angle goes away. It is the same for most of the recommendations you make. If they were done by a significant portion of people. Most of your advice will work for a few people, but they are not suitable policies for widespread application.
The biggest problem with this article, is the assumption that the ultra wealthy make money by working. They make money because the return on capital is greater than the underlying growth in the economy. If you have even a basic level of mathematical competence, you can recognize the macro economic implications of this.
Capital will accumulate in the hands of the few, not due to their hard work, or expertise, but because they already have more capital. We no longer have capitalism, we have financialism. The economists, the policy makers, the politicians, everyone has been corrupted by the financial sector.
In a real capitalist economy, finance is a support function. In financialism, it is a profit center, and this structure can only be supported in an environment of private sector credit expansion. It is also essentially a system of theft. The financial sector is stealing the wealth of the nation, while adding no real value. It is sad that people are too stupid to recognize it.
Wealth skates on by. Focus On Building Wealth Over Building Income. January 5, at 1: In my opinion, it is reasonable for rich people to pay more tax because they use more resources than poor people.
Moreover, rich people can make money easily with stocks, capitals. Generally,working more than 40 hours per week is not a good way to become rich. The first step is to have a good financial plan, so one can have an egg in his hand. Then he can hatch this egg and wait patiently for a few hens. January 25, at 8: Some very awkward statements are being made here: How much do they earn? Since we are being told all this other historic information, educate everyone on the potential changes a few various scenarios could give and show that this would eliminate the US national debt.
Using knowledge attached to computers could help everyone be more understanding and more unified. February 2, at I graphed the income distribution data forwhich is within the range from in which we had the most balanced economy in terms of not having swung overly far toward a government induced equality. Yet it was still within the years with relatively high equality, that is, not nearly the extreme inequality we have currently. I also graphed the data fora year in which inequality was fairly extreme.
The horizontal scale represents percentile linearly from 0 to so you can see exactly how the income distributes across the total population.
I then assumed that equality is not a natural goal. We all have different levels of both ability and motivation to earn. So for me, the famed Gini Index is based on perfect equality as an ideal. In my view, this is fundamentally unnatural and therefore fundamentally misinformed. This and the assumption of zero-sum game economics is the mistake of the far left as well as Marxist thinking in many respects, although they are usually not quite the same thing.
The graphs of and were both similar to the way a normal distribution would look in this graphic format, with income represented logarithmically. Both these sets of real data look essentially linear as plotted on the vertical logarithmic income scale versus horizontally linear percentiles between the 30th and 70th percentile.
In this format, that translates to a straight line that multiplies income by the same factor for the same distance we move horizontally anywhere along the line representing an increasing percentage of the population with less income.
So I decided to postulate an ideal distribution that was similar, but with a slope that was as much less steep than the graph as that graph was to the graph. Put another way, I hypothesized an ideal situation in which the distribution would be as much better than the as was worse.
Just like a normal distribution of IQ or the length of our noses, I hypothesized that the combination of ability and motivation to earn in a homogeneous population that had no repressed minorities would also be normally distributed.
I therefore made the slope of the linear section lower than by the same amount the was higher with the income distribution perfectly normal under this condition and in this format. This ideal consequently represented a true normal distribution instead of approximately normal as in the real data. All the data were modified in a manner that reproduced exactly the same distributions as the original data, but which assumed equal total income for equal populations.
This is the only way to compare apples to apples. There was even an inflection point at the 70th percentile at which all three graphs were at the same income. Nevertheless, the very bottom still had people who were earning less than would be necessary to live on. I assumed that this will always be so, just as there are always people with very short noses or very low IQs.
These populations are outside the middle linear section on all three graphs This also made no assumptions about how to implement the distribution; no assumptions about government or any other kind of involvement. I merely looked at income distribution with no tax assumptions or any kind of specific safety nets.
Of course, in practice it would be more sensible for these average results to be progressively distributed on both ends. The difference is still greater for the extremely low incomes assuming a graduated relief scheme. This is even morally justifiable in that those on the high end of the income distribution typically use a lot more public infrastructure than those on the low end. It is only right that they pay for it accordingly.
I found this to be a very interesting and informative Gedankenexperiment i. February 7, at I have two problems with an otherwise informative article.
The author also states that to move up in income, the poor can simply work more hours in their regular or a part-time job, yet again, conservatives scream about the poor not spending time with their children and their lack of parenting skills. February 8, at 9: How To Make Six Figures At Almost Any Age. Trying Working A Minimum Wage Job As An Adult. The comment section helps alleviate that stress. After the venting is done, take action to change it if you are not happy.
February 27, at 7: I agree with the statement that we are doing better than most of the world even in the poor category, it beats living in Saudi Arabia or Iraq etc, and there are many more 3rd world countries than 1st world ones. I also agree that the working poor and the elderly have a completely legitimate reason for their taxable income.
I do not agree that people who cannot afford children and have them anyway should be given a free pass, this is a policy that creates more financially dependent people by not being a financial burden on this group, however this statement is only true if we start providing health services like abortions and such and stop letting religious extremists prevent us from doing so.
I hate to say this but we need incentives to make this group of people think twice before creating more burden on our financial situation. Much of this money is not treated as personal income either since its tied to business. March 19, at Your thoughtful insight is always appreciated. Got some new financial goals to strive for!! March 23, at 9: I will add that living your life being grateful for what you have and counting your blessings is a surefire way to be happy.
You can always be worse off, and if you complain too much, the universe might teach you that. June 1, at Working 60 plus hours. I am over it now but this is a very sound investment and I am stuck outside with my nose pushed up […].
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Financial Samurai Slicing Through Money's Mysteries. About Free Wealth Management Top Financial Products How To Start A Blog Negotiate Your Freedom. How Much Money Do The Top Income Earners Make? Posted by Financial Samurai 1, Comments Welcome top income earners! Is your retirement on track? Check for free after linking your accounts. Subscribe To Private Newsletter Enter your email address Comments RealDealExpert says February 3, at 8: Madeline, your comment makes you sound like a crazy person.
You are not serious are you? Great discussion and positivity, 2 things we rarely see. There are so many government funded programs that waste money this way. Given your history as a janitor, have you read this post? I can tell you what is wrong with working more than forty hours a week.
Young people consider yourself warned. Income Profiles Of Financially Free People — Lots of examples of people hustling, and not complaining Financial Independence: But, yes, there is some time sacrifice to be made here! Adopt an ABUNDANCE MENTALITY. I went to Europe for a couple months to do research, and I wrote about it: I hope you all choke on your caviar.
Why Tough Love Is Important When It Comes To Your Finances Read this one if you want an easier life: Best of luck to you! First off, I offer me as an example of just how misleading things can be: Well off people hide massive amounts of money from the AGI. Show me how your business makes money and does not pay taxes.
What type of legal entity is it? How do you calculate your net worth? Why the feigned surprise? Companies like General Electric often pay little or no taxes.