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Income Inequality

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Sadly, most of the wealthy do not understand they have a fiduciary duty to maintain civilization....

 

New York Millionaires Tell Albany: Tax Us, Please

https://www.nytimes.com/2019/02/12/nyregion/millionaires-tax.html?smid=fb-nytimes&smtyp=cur


"The boss rolls up in a new Lamborghini and tells his staff 'The greatest part about America is that hard work breeds wealth. So if you work hard and dedicate yourself tirelessly to the task at hand, I can get another new Lamborghini next year.'” -- Overheard in a Cleveland bar.

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https://www.cnbc.com/2019/02/13/richard-branson-wealthiest-deserve-taxes-if-not-helping-inclusion.html?__source=iosappshare|com.apple.UIKit.activity.CopyToPasteboard

 

Richard Branson: World's wealthiest 'deserve heavy taxes' if they fail to make capitalism more inclusive

 

Quote

"We have to try and do everything we can to lift the vast majority of people up, when for the last few years the vast majority have not seen their living standards improve," Branson told an audience on Tuesday evening.

 

"I don't think we should throw out capitalism. But for those of us who are fortunate to have made wealth, we have a responsibility to throw that out there and tackle some of the great problems. If we don't do that, then we deserve to have very heavy taxes leveled on us."

 

"Capitalism basically is not working for the majority of people. That's just the reality," hedge fund mogul Ray Dalio, with a net worth of $18 billion, told a panel at Davos in January.

 

Today, he pointed out, "the top one-tenth of 1 percent of the population's net worth is equal to the bottom 90 percent combined. In other words, a big giant wealth gap." If he were president, he said, "I think that you have to call that a national emergency."

 


Very Stable Genius

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5 minutes ago, GCrites80s said:

The ultimate CEO salary is $1. That means they only ever have to pay capital gains taxes.

 

$12,000 if single (or more, if they know how much they're itemizing).  The deduction reduces their earned income to $0, so since they'd be in the 0% tax bracket, their capital gains would be taxed at 0% instead of 15%.


Very Stable Genius

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2 minutes ago, GCrites80s said:

Wait, isn't itemizing over with though?

 

No, they just raised the standard deduction and put a cap on SALT taxes you can deduct, so far fewer people have itemized deductions in excess of the standard deduction now.

Edited by DarkandStormy

Very Stable Genius

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"The boss rolls up in a new Lamborghini and tells his staff 'The greatest part about America is that hard work breeds wealth. So if you work hard and dedicate yourself tirelessly to the task at hand, I can get another new Lamborghini next year.'” -- Overheard in a Cleveland bar.

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The comments on this "average" couple are great......

 

 


"The boss rolls up in a new Lamborghini and tells his staff 'The greatest part about America is that hard work breeds wealth. So if you work hard and dedicate yourself tirelessly to the task at hand, I can get another new Lamborghini next year.'” -- Overheard in a Cleveland bar.

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^🤣

Hard to feel sympathetic for someone that has a $1.5M home and takes three vacations a year.  Also, who spends $5000 a year in gasoline?  That's over $200 a week per vehicle.  They can't possibly be filling each vehicle 5 or 6 times a week.

 

Also, $18k to charity.  Good for you, but that's the first sign that you aint average!

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The scarey part is, $500k really is average for a lot of major metros.  In this case, I'd say driving around a BMW and Land Cruiser is a bit above average.

 

Need to sell that fed inflation some how!

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On 3/26/2019 at 5:47 PM, Hootenany said:

^🤣

Hard to feel sympathetic for someone that has a $1.5M home and takes three vacations a year.  Also, who spends $5000 a year in gasoline?  That's over $200 a week per vehicle.  They can't possibly be filling each vehicle 5 or 6 times a week.

 

Also, $18k to charity.  Good for you, but that's the first sign that you aint average!

 

I did not notice funding for a financial planner!  I also find it strange they only spend/allocation 10K for an emergency fund.  

 

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19 hours ago, MyTwoSense said:

 

I did not notice funding for a financial planner!  I also find it strange they only spend/allocation 10K for an emergency fund.  

 

 

The "children's lessons" bit isn't much of an exaggeration though, depending on what they are.  Music lessons might cost $50/week now (they were about $20 per lesson when I was a kid), but stuff like gymnastics is unbelievably expensive.  I know that the gymnastics gyms literally act as social groups/country clubs for the parents.  Cincinnati Gymnastics is $800/mo for basic and then another $400/mo for the "parents' club" or something like that, which among other things, has one big social event per month for the parents that has absolutely nothing to do with gymnastics.  All of this before the travel expenses to all of the out-of-town meets. 

 

I am amazed when I see how youth sports fill up the Cincinnati hotels.  I assume they're out in the cheaper suburban hotels, too, but the pretty-expensive ones around UC and even Downtown fill up with entire tournaments worth of kids and their parents. 

 

I'll never forget working at a softball tournament in Columbus in 2008, back when gas briefly hit $4/gallon, and seeing SUV's with Louisiana tags out in the parking lot. 

 

 

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1 hour ago, jmecklenborg said:

 

The "children's lessons" bit isn't much of an exaggeration though, depending on what they are.  Music lessons might cost $50/week now (they were about $20 per lesson when I was a kid), but stuff like gymnastics is unbelievably expensive.  I know that the gymnastics gyms literally act as social groups/country clubs for the parents.  Cincinnati Gymnastics is $800/mo for basic and then another $400/mo for the "parents' club" or something like that, which among other things, has one big social event per month for the parents that has absolutely nothing to do with gymnastics.  All of this before the travel expenses to all of the out-of-town meets. 

 

I am amazed when I see how youth sports fill up the Cincinnati hotels.  I assume they're out in the cheaper suburban hotels, too, but the pretty-expensive ones around UC and even Downtown fill up with entire tournaments worth of kids and their parents. 

 

I'll never forget working at a softball tournament in Columbus in 2008, back when gas briefly hit $4/gallon, and seeing SUV's with Louisiana tags out in the parking lot. 

 

 

 

All true.   This all stems from modern parents irrational fear that if their child isn't enrolled in these activities and just plays in yard, they would certainly be kidnapped!

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2 hours ago, jmecklenborg said:

 

The "children's lessons" bit isn't much of an exaggeration though, depending on what they are.  Music lessons might cost $50/week now (they were about $20 per lesson when I was a kid), but stuff like gymnastics is unbelievably expensive.  I know that the gymnastics gyms literally act as social groups/country clubs for the parents.  Cincinnati Gymnastics is $800/mo for basic and then another $400/mo for the "parents' club" or something like that, which among other things, has one big social event per month for the parents that has absolutely nothing to do with gymnastics.  All of this before the travel expenses to all of the out-of-town meets. 

 

I am amazed when I see how youth sports fill up the Cincinnati hotels.  I assume they're out in the cheaper suburban hotels, too, but the pretty-expensive ones around UC and even Downtown fill up with entire tournaments worth of kids and their parents. 

 

I'll never forget working at a softball tournament in Columbus in 2008, back when gas briefly hit $4/gallon, and seeing SUV's with Louisiana tags out in the parking lot. 

 

 

 

You're not kidding as a new parent, I have a whole set of line items I never had before.  I now have Manny, School Clothes, lessons/sports/extra curricular activities. My grocery budget has tripled.  

 

In regards to sports, Club Sports like Soccer, Volleyball, Lacrosse, Cheerleading/Dance, Swim, Tennis and Track are expensive.  The coaches along with the Travel to make sure your kid/kids are seen by elite level coaches adds up!

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On ‎3‎/‎26‎/‎2019 at 4:42 PM, KJP said:

The comments on this "average" couple are great......

 

 

This article is around 4 years old. The fictional couple this represents may not live lavishly for NYC, but it is easy to see where their money goes. It is just a reason why they should leave NYC. The vast majority of their work can be done in cheaper areas of the country and they can make their money go a lot further in more affordable metros like say in Ohio.

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5 hours ago, MyTwoSense said:

 

You're not kidding as a new parent, ..

 

giphy.gif


"You don't just walk into a bar and mix it up by calling a girl fat" - buildingcincinnati speaking about new forumers

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8 hours ago, GCrites80s said:

I remember when I got to college a lot of the kids that were like that when they were younger just sat there and watched movies. Some did their homework. 

 

I was in college in the 90s when TV's and VCR's were still pretty exotic items for one to have in their dorm room.  You couldn't get good reception and you couldn't get cable in your room.  The internet didn't exist outside of the big library, and the librarian had to log you on and it kicked you off after 30 minutes. 

 

We had this doughy guy (I wish I could remember his name!) who would bring his own VCR down to the big-screen projection TV along with his collection of 300 VHS tapes.  He was a massively annoying character.  He LIVED to choose the movie, and then had to tell you EVERYTHING about the movie.  As well as EVERYTHING about every other movie the director and actors had been involved with.

 

On Friday and Saturday nights, people would gather in that lounge before heading out or regroup there at 2am after coming back from parties.  But that dude never budged from that couch and his precious movies. 

 

 

 

 

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Interesting political map, too…

 

 


"The boss rolls up in a new Lamborghini and tells his staff 'The greatest part about America is that hard work breeds wealth. So if you work hard and dedicate yourself tirelessly to the task at hand, I can get another new Lamborghini next year.'” -- Overheard in a Cleveland bar.

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On 2/15/2019 at 1:50 AM, jmecklenborg said:

A writer discusses how nobody in New York City admits that they got the down payment for their place from their parents:

 

https://www.harpersbazaar.com/culture/features/a26091060/money-millennials-parents-career-success/

My parents paid for half of my down payment, although I could have paid it myself by dipping more into savings. It's not fair, but I'm not gonna turn it down either...

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22 minutes ago, Cavalier Attitude said:

My parents paid for half of my down payment, although I could have paid it myself by dipping more into savings. It's not fair, but I'm not gonna turn it down either...

 

Your parents can gift you $13,000 apiece each year (so $26,000 total, assuming both are alive) tax-free.  I'm not sure how parents gift their kids $100k+ for down payments on $400k+ homes and condos without paying tax on the gift.  I heard about a guy whose new father-in-law gifted him two paid-for 4-family apartment buildings as a wedding gift, but again, I'm not sure how that's done unless they did it through an LLC. 

 

Fun Fact: if you apply for a mortgage for a rental property, the bank will usually refuse to accept a family gift towardthe down payment because you're statistically more likely to walk away from the building. 

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On 4/5/2019 at 2:46 PM, Cavalier Attitude said:

My parents paid for half of my down payment, although I could have paid it myself by dipping more into savings. It's not fair, but I'm not gonna turn it down either...

Also most are cosigners on these said loans.

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On 4/5/2019 at 3:25 PM, jmecklenborg said:

 

Your parents can gift you $13,000 apiece each year (so $26,000 total, assuming both are alive) tax-free.  I'm not sure how parents gift their kids $100k+ for down payments on $400k+ homes and condos without paying tax on the gift.  I heard about a guy whose new father-in-law gifted him two paid-for 4-family apartment buildings as a wedding gift, but again, I'm not sure how that's done unless they did it through an LLC. 

 

Fun Fact: if you apply for a mortgage for a rental property, the bank will usually refuse to accept a family gift towardthe down payment because you're statistically more likely to walk away from the building. 

It's not really hard to wire/send electronically 5k here and there into a persons account.

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2 hours ago, MyTwoSense said:

Also most are cosigners on these said loans.

 

Yeah my old-school parents and grandparents refused to cosign on student loans or even apartment leases or utilities.  I remember back when I was 21 or so my roommate's mom (who I had barely met) cosigned when I couldn't get anyone else. 

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2 minutes ago, jmecklenborg said:

 

Yeah my old-school parents and grandparents refused to cosign on student loans or even apartment leases or utilities.  I remember back when I was 21 or so my roommate's mom (who I had barely met) cosigned when I couldn't get anyone else. 

Now that's crazy.  No way I would take the risk. In the even you decided to no longer pay.

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"The boss rolls up in a new Lamborghini and tells his staff 'The greatest part about America is that hard work breeds wealth. So if you work hard and dedicate yourself tirelessly to the task at hand, I can get another new Lamborghini next year.'” -- Overheard in a Cleveland bar.

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On 4/5/2019 at 2:29 PM, YABO713 said:

Ray Dalio, founder of Bridgewater Capital and someone I very much admire, had the following to say about the need for reforms to Capitalism - wow. 

 

https://www.linkedin.com/pulse/why-how-capitalism-needs-reformed-ray-dalio/ 

Loved this.  Saw him on 60 minutes too.  Wish our politicians were as well reasoned.  And our voting population cared enough to become informed.  

 

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On 4/7/2019 at 1:08 PM, MyTwoSense said:
On 4/7/2019 at 1:05 PM, jmecklenborg said:

 

Yeah my old-school parents and grandparents refused to cosign on student loans or even apartment leases or utilities.  I remember back when I was 21 or so my roommate's mom (who I had barely met) cosigned when I couldn't get anyone else. 

Now that's crazy.  No way I would take the risk. In the even you decided to no longer pay.

 

My parents cosigned on a $500-limit credit card when I first went away to undergrad.  I don't think cosigning for an apartment lease (assuming a regular student apartment in Ohio, not someone wanting a luxury apartment in the city while they attend NYU or Columbia) or utilities (again, for an average apartment) would be that much different in terms of exposure.  When it comes to student loans, of course, principal balances are completely bonkers and co-signing those carries major exposure, especially (but hardly exclusively) if your child isn't even majoring in something oriented towards a lucrative career.

 

On 4/5/2019 at 3:25 PM, jmecklenborg said:

 

Your parents can gift you $13,000 apiece each year (so $26,000 total, assuming both are alive) tax-free.  I'm not sure how parents gift their kids $100k+ for down payments on $400k+ homes and condos without paying tax on the gift.  I heard about a guy whose new father-in-law gifted him two paid-for 4-family apartment buildings as a wedding gift, but again, I'm not sure how that's done unless they did it through an LLC. 

 

I think the gift tax exclusion is actually $15,000 now.  https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes

 

But even with the doubling effect of a couple giving away property owned jointly, that would only be a $30,000 exclusion per year, and I have no idea how they do it without that for something like real property.  (Paying tuition and medical expenses of someone else is separately and, AFAIK, completely excluded/nontaxable.)  Even doing it through an LLC wouldn't be foolproof.  Maybe through a trust where the recipient doesn't actually get ownership of the property intended to be transferred until later.  Though this might be a situation where the basis is what the donor-parent paid for it rather than the current fair market value, so if someone gifted a building that they paid $50k for, it's a $50k gift (less the exclusion, so $20k taxable if a married couple gives such a building they own jointly to a child), even if the building is now worth $120k.  The child is then liable for the tax on the gain if they sell it.

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People give away huge gifts all the time and get away with it. It's about as easy to skip as the part of your taxes where you're supposed to pay sales tax on items you had shipped from out of state. 'Bout as much gets done about it as well.

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56 minutes ago, Gramarye said:

 

My parents cosigned on a $500-limit credit card when I first went away to undergrad.  I don't think cosigning for an apartment lease (assuming a regular student apartment in Ohio, not someone wanting a luxury apartment in the city while they attend NYU or Columbia) or utilities (again, for an average apartment) would be that much different in terms of exposure.  When it comes to student loans, of course, principal balances are completely bonkers and co-signing those carries major exposure, especially (but hardly exclusively) if your child isn't even majoring in something oriented towards a lucrative career.

 

I remember getting my first credit card with a $500 limit when I was 19.  This was before the internet.  You had to send your check in the mail like 7 days before the due date or else you got slapped with the $30 late fee.  

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