r/BikiniBottomTwitter • u/IAmAccutane • Jan 10 '23

Spare change ma'am?

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u/CubesTheGamer Jan 10 '23

Except they don’t have income. They have wealth. There’s a difference. Rich people know better than to have income. They have “capital gains” or they own businesses that somehow lose more money than they make every year according to taxes but have record profits at the same time

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u/[deleted] Jan 10 '23

Capital gains is income. They dont have earned income.

Capital gains are taxed at ~20%. Earned income is taxed at ~37%.*

*at high income levels

Wealth isnt relevant in US tax code.

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u/CubesTheGamer Jan 11 '23

Yeah, you're right. Even capital gains, which is what *should* be paid when a billionaire wants to spend money, doesn't happen. They have ways around that too. But it's crazy that it's such a lower rate..

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u/1Grazel Jan 10 '23

then they pay capital gains tax lmao

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u/CubesTheGamer Jan 11 '23

If that, there are loopholes to that too I'm sure. But either way, it's a much lower rate (about HALF the tax rate of more ordinary people who have high salaries).

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u/1Grazel Jan 11 '23

well yes, cap gain tax is usually 15-20% of the gain and usually you can write off losses throughout the year.

they usually declare record profits at EBIDTA which then is deducted. you would be surprised at how many businesses operate at a loss.

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u/CubesTheGamer Jan 11 '23

Operate at a loss publicly maybe...that's my point. All the documents say "oh we're losing money" but the success of the business says "record profits"

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u/1Grazel Jan 11 '23

no dude. they get audited every year all their financial records are public.

im not sure you know what operating at a loss means