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The wealthy make the bulk of their income from their investments, not their salary - this brings many advantages, including paying a low tax rate.
Warren Buffett pays an effective tax rate of 17.4%, while his office staff pays an effective tax rate of 36%.
Warren Buffett pays an effective tax rate of 17.4%, while his office staff pays an effective tax rate of 36%.
How does he do this?
The tax system is set up to encourage investment, which means low taxes for investors and high taxes for employees.
Here’s how Buffett pays less tax than his employees:
The tax system is set up to encourage investment, which means low taxes for investors and high taxes for employees.
Here’s how Buffett pays less tax than his employees:
— the bulk of his income comes in the form of capital gains (capped at 20%)
— his favorite holding period is forever - this means that he will pay zero tax for companies that he buys and holds (you only pay capital gains tax when you sell an asset)
— his favorite holding period is forever - this means that he will pay zero tax for companies that he buys and holds (you only pay capital gains tax when you sell an asset)
The best part about this - anyone can do this!
The ultimate tax-saving hacks unlock when you become an investor, a business owner, or both.
What are you waiting for? Start investing today and take advantage of the tax hacks that the ultra-wealthy use!
The ultimate tax-saving hacks unlock when you become an investor, a business owner, or both.
What are you waiting for? Start investing today and take advantage of the tax hacks that the ultra-wealthy use!
