Quote:
Originally Posted by GGG
Well depending on how his options are structured taxation can be deferred until they are sold and then you can borrow money against the stock and just pay interest on the debt effectively deferring tax indefinitely. Also by simply holding the excel used option for a year it becomes a capital gain instead of income so taxed at half the rate
So yes he does have means of significantly reducing his taxes of both Capital Gains and Income that aren’t available to those without significant means.
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While your post is correct , I am not sure why you quoted me when my point was the argument he pays 10% “income” tax is incorrect.
My point is he doesn’t pay a lower % of income tax on his taxable income . He pays the same rates on his taxable income as anyone.
And no , he doesn’t reduce his taxable income by means that aren’t available to the rest of us . Most of us just don’t receive the majority of our income in options or long term vesting shares, or ownership share appreciation
Again - not arguing whether or not the tax setup needs to change or is “fair” - but these urban myths that the rich somehow pay a lower tax “rate” then you or me need to stop. They pay the same tax rate on the type of Income and more importantly , wealth generation, as any of us do