[an]

[quote=flu]Everytime I hear the word “free”… I’ve been accustomed to thinking “ok now, how much is this going to cost me…”

Lol[/quote]That’s the price of being rich 🙂

[an]

[quote=flu][quote=harvey][quote=flu]I’d like to see folks try to defend this one….[/quote]

So have you actually looked at the numbers?

It doesn’t seem that these changes would result in a net increase in taxes for most families/students.

With the $2500 credit, it could be a net decrease.[/quote]

Except for households above the cap..[/quote]Cap is $180k as a couple or $90k as a single. Don’t you know that you’re rich when you make that much more than the middle class? Be happy that you’re rich and quit ya whining.

[an]

[quote=livinincali][quote=CA renter]

Probably true about this not going anywhere with Republicans controlling congress; not sure it would pass with Democrats, either. It’s a bit like talking about eliminating the mortgage interest deduction…they can talk about it so that they sound tough, but it just isn’t going to happen (IMO).

They could only do this going forward. The uproar would be huge if they tried to do this to existing accounts.

Really, why would anyone invest in a 529 plan if it passed? It’s bad enough that there is a penalty if the money isn’t used for qualifying expenses…take the tax savings away, and I doubt that anyone would invest in one of these plans.[/quote]

Only 3% of families invest in 529 accounts. You win if you can give something away to the families that didn’t invest in 529 plans. It’s why I think the day is coming when they are going to do something with Roth accounts. For instance we’ll save you social security payment or boost it and in order to pay for it we’re going to retroactively tax Roth accounts. Yeah you piss off 10% of the population with Roth accounts but you satisfy a bigger percentage of people with the give away.[/quote]+1

[an]

[quote=CA renter][quote=AN]Is this a precursor to the death of RothIRA/Roth401k?[/quote]

That’s what I was thinking while reading that. Let’s hope not.

Agree that the whole point of the 529 plans is the tax savings. Not sure this is what he should be going after.[/quote]
Luckily this won’t go anywhere, since Republicans control congress. However, what happen if Democrats again control all 3 branches and pass something like this and other Roth type accounts. Would they only make it going forward or would they make it retroactive.

[an]

Is this a precursor to the death of RothIRA/Roth401k?

[an]

You know you have a strong argument when you start using straw man and hyperbole.

Since reading comprehension is so difficult, what’s your definition of abundance and excess? Are you saying sections have the same definition of abundance and excess?

[an]

Poorgradstudent, I’m talking about legal deduction, not fraudulent activities. As for home office, W2 Warner can’t deduct home office, so what’s your point?

[an]

Harvey, here’s the definition of lavish, since you don’t know: http://www.merriam-webster.com/dictionary/lavish. You should also learn to read the entire post. Obviously bold and pointing out your ability to read isn’t helping.

[an]

[quote=flu][quote=AN]It’s never too late :-)[/quote]

@$400/share AH, it’s a little too rich for my blood…[/quote]Does it really matter if it’s $400/share or $40/share? The market cap is still the same and stock moves with the same % anyways. So, with $400 stock, it’ll move in $ while the $40 stock, it probably would move in cents. Question is, do you believe $20.32B market cap is rich or not.

[an]

It’s never too late 🙂

[an]

[quote=harvey]This is what SK said:

[quote]That fantasy world doesn’t exist. Business owners can’t write off a lavish life style legally.[/quote]
[/quote]
And this is the post he was responding to:

[quote=SK in CV][quote=AN]The more I see these kind of stuff, the more I’m convinced that it’s not worth it to be a rich W2 earner. If you want to be rich, be a biz owner. There are a shit load of stuff you can write off or have the company pay for your life style. Then, you don’t need a big pay check to live just as lavish of a life style as those W2-er in the upper echelon.[/quote]

That fantasy world doesn’t exist. Business owners can’t write off a lavish life style legally.

It is hard to become super rich as a wage earner. But it isn’t hard to become super comfortable as a very high wage earner. Don’t live like you’re super rich, don’t spend it all and invest wisely. It doesn’t happen overnight.[/quote]Lavish is in the eye of the beholder. I’m sure when compare to other 3rd world countries, most American life style are pretty lavish. I consider having a cellphone, a luxury car, a nice house, new computers pretty lavish. Maybe because SK lives in CV, so his definition of lavish might be quite different than some of us lowly W2 earners who can’t afford to live in CV.

See the sentence I put in bold that SK seems to only read 1/2 of and responded to. If the company pays for your 7-series/S-class/Tesla/Range Rover, brand new computers, brand new iPhone w/ service, servicing your car, paying for your car insurance, home office, part of your utility, etc. Those can easily add up to tens of thousands of dollar. All these stuff I just listed are stuff I’d considered lavish. Not private plain lavish (maybe that’s what SK would consider lavish), but that just be the difference in definition of lavish.

Then there are stuff like SEP IRA that W2 working stiff don’t have access too. 25% or $52k/year in contribution, which ever is less. That’s a hug benefits IMHO. If both spouses work for the company and have the company put money into their SEP account. You’re talking about $104k/year. W2-er can only max out at $17.5k/year or $35k/year as a couple. I can go on and not, but you get my point. There are a shit load of knobs and lever that biz owner have access to to manipulate their income that W2 earners don’t have access to. Which is why I said what I said. If you want to be truly rich, be a biz owner.

[an]

[quote=SK in CV]If they use a home office exclusively for work and there is no other local office, then there might be a small deduction. If they use their cars for business, they can write off a piece of the cost, exactly like you can. They can write off their cell phones if they use it for work and it’s a 2nd cell phone (can’t write off 1st cell phones). Bottom line is, they can legally write off costs that are related to the business. Not unrelated costs that improve lifestyle outside of work.[/quote]W2 earner can’t write off any of that. I have a home office that I use for work. Can’t write that off. I have a car that I use to take myself to work and back. Can’t write that off. Biz owner can have the company pay for the car and maintain the car, so it’s not a piece of the cost, it’s the entire cost + maintenance. Biz owner can have their company own the cellphone contract. I don’t know about you but having your computer, cellphone, car, etc. paid for does improve their life style. Especially if it allow you to have extra money to spend on other stuff.

Let me put it another way. Lets say a W2 earner and a biz owner both making $200k (based on their taxable income). The W2 earner would have to pay for the stuff I listed and more with their after tax income. The biz owner can have a lot of those stuff paid for through their biz. So the $200k can be use purely for their enjoyment to enhance their life style.

BTW, I thought you said it’s fantasy and does not exist?

[an]

[quote=harvey]
I was just poking fun of the tone of this thread. We sometimes lose perspective and say odd things. [/quote]You’re right, a lot of times, people lose perspective. Especially when you compare yourself to the entire human race and not just your neighbor in America.

[quote=harvey]Financially speaking, it’s always worth it to be rich.[/quote]Of course it is. But you’d only say that if you stop reading after 1/2 of my first sentence. I was making a comparative statement. If you want to be rich, you’re less vilified as a biz owner, especially when you’re talking about the tax code.

[quote=harvey]It’s rich enough that small changes in tax policy won’t be a hardship, or even a disincentive to earn more.[/quote]I never said it’s a hardship or disincentive.

[an]

[quote=SK in CV]That fantasy world doesn’t exist. Business owners can’t write off a lavish life style legally.

It is hard to become super rich as a wage earner. But it isn’t hard to become super comfortable as a very high wage earner. Don’t live like you’re super rich, don’t spend it all and invest wisely. It doesn’t happen overnight.[/quote]
I’ve listed many things that biz owners can write off that W2 earners can’t. It ain’t fantasy. I’ve seen first hand many biz owners who do it. You’re telling me company cars are illegal? How about company paid cellphones. How about company computers? How about have a home office? I can go on, but you obviously thing it’s fantasy.

I’m not saying it’s harder or easier to be super rich as a wage earner or as a biz owner. I was just pointing out the double standards.

[an]

[quote=harvey][quote=AN]I’m convinced that it’s not worth it to be a rich […][/quote]

First world problem.[/quote]I’ve personally experienced 3rd world problems. Have you?

[Author]

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