wealthy benefit most from tax subsidies

iVillage Member
Registered: 09-15-2008
wealthy benefit most from tax subsidies
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Wed, 09-22-2010 - 9:25pm


(Reuters) - Billions of dollars in U.S. tax breaks to encourage home ownership, retirement savings, business start-ups and education mostly benefit top income earners and do little to help low- and middle-income people build wealth, a report released on Wednesday said.

full article:
http://www.reuters.com/article/idUSTRE68L3WP20100922

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iVillage Member
Registered: 09-01-2010
Thu, 09-23-2010 - 10:12am
I'm not so sure you'd be defined as wealthy, but your family would be defined as in the top 2 percent of earners. Wealth is about your holdings (property, stocks, bonds). Earnings is how much money your family brings in. That said, with a taxable income of well over $250K, it is possible with judicious management for your family to amass significant wealth. One thing my wealthy BIL did that helped him become wealthy (beyond inheriting over a million dollars), was that for a couple of years after inheriting, he continued his middle class lifestyle by living in the home he could easily afford when he was making $125K. He took the inheritance and scoped out a niche contracting business, while he continued to work at his $125K job making his less than $1,000/month house payments. The day he was able to retire early with a $70K+ immediate pension and health benefits, he did so. He opened that business he financed with an initial $500K investment from his inheritance. The rest is history for him. He has a significant annual income PLUS he has a high net worth (somewhere between $12 - 20 million). I suspect that he will sell his business within the next year and retire to live off his amassed wealth. He had his second heart attack earlier this year, and he'd like to just enjoy life now.
~Opal~
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Avatar for jbgattuso
iVillage Member
Registered: 04-29-2003
Thu, 09-23-2010 - 10:28am

"with a taxable income of well over $250K, it is possible with judicious management for your family to amass significant wealth."



Maybe after we get through these most expensive years with our children!

iVillage Member
Registered: 09-01-2010
Thu, 09-23-2010 - 10:42am
Kids ARE a like money vacuums. When I look back, I wonder how DH and I ever did it financially.
~Opal~
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Avatar for jbgattuso
iVillage Member
Registered: 04-29-2003
Thu, 09-23-2010 - 10:46am
ha ha :) yep!
iVillage Member
Registered: 10-30-2003
Thu, 09-23-2010 - 12:32pm

And yet some of us are able to get through the same years with and income well below $250K.

Anne

I have no need for anger
With intimate strangers
And I got nothing to hide



- Amy Ray

I have no need for anger
With intimate strangers
And I got nothing to hide


- Amy Ray

iVillage Member
Registered: 01-21-2006
Thu, 09-23-2010 - 1:24pm

After thinking about this topic for a few days, reading information and listening to the pundits speak about it, I have come to the conclusion that there are two main thought processes about the economy that I am hearing. Of course there may be others, but these two seem to predominate in our current environment.



Let's view the economy as a pie. Everyone wants to earn a piece of the pie. Some have earned a small piece of the pie and others have earned a large piece of the pie.



One group thinks that it is not fair for some to have such a large chunk of pie and thinks they should give back some of it, so that it can be given to those with smaller pieces of the pie.



The other group thinks, we need to create a larger pie, so that everyone can increase their portion without anyone having to reduce the portion that they have earned.



Obviously, a rather simplistic view of the economy, but I think the thought process represents what I am "hearing" regarding tax increases and why only a few should or should not

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iVillage Member
Registered: 04-29-2003
Thu, 09-23-2010 - 1:34pm

"And yet some of us are able to get through the same years with and income well below $250K."



Ahhh yes, and some of US started adult life with goals in mind as to how we would raise our children and work to give them every opportunity in life to better themselves and even out Country....only to be told that it is our responsibility to do that for others as well so that their kids have the same opportunities as ours! (and sometimes more opportunities)



Just a different way of looking at things I guess!

iVillage Member
Registered: 10-30-2003
Thu, 09-23-2010 - 1:36pm

History has shown us that the whole pie gets bigger when everyone has more equal pieces of pie.

Anne

I have no need for anger
With intimate strangers
And I got nothing to hide



- Amy Ray

I have no need for anger
With intimate strangers
And I got nothing to hide


- Amy Ray

iVillage Member
Registered: 03-26-2003
Thu, 09-23-2010 - 1:39pm

<>



Or there is the group that thinks what's been happening for the last 30 years is that we keep making the pie bigger but only a very few people are getting much larger pieces while everyone else gets the same or less.

 


 


I disagree with you, but I'm pretty sure

iVillage Member
Registered: 10-30-2003
Thu, 09-23-2010 - 1:39pm
Ahhh yes, and some of US started adult life with goals in mind as to how we would raise our children and work to give them every opportunity in life to better themselves and even out Country....only to be told that it is our responsibility to do that for others as well so that their kids have the same opportunities as ours!





Yes, I am able to do all that for my children, with far less than 250K, and no help from you.





Anne

I have no need for anger
With intimate strangers
And I got nothing to hide



- Amy Ray






Edited 9/23/2010 1:40 pm ET by zabugle

I have no need for anger
With intimate strangers
And I got nothing to hide


- Amy Ray

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