Wait! Didn't socialism make America great 🇺🇸

[maracho]

The 90% tax rate is deceptive. When poverty-hustlers like Bernie Sanders hark back to the good old days of 90% tax rates, what he isn't telling you is that there is a marginal tax rate and an effective tax rate. That the their income was taxed at that rate over and above the $200K threshold.

Also, corporate rates have always been under 50%, so if wealthy individuals wanted to avoid a 90% tax rate, they simply filed as a corporation, since many of them were large business owners. There were also a lot more tax deductions and loopholes that the wealthy could use to avoid being taxed to death.

Say someone earning $100,000 a year buys a property worth $275,000. He rents out the property and breaks even on it. The tax code allows that person to write off $10,000 as a loss which he can count against his income for that year. So now he only has to pay taxes on $90,000. If he owned ten such properties, his income would be zero, at least according to the IRS.

That deduction is now gone for everyone but “active” real estate investors, or those who invest in real estate as a career. There were so many deductions and loopholes in the pre-1986 tax code that there was a massive amount of tax fraud at all income levels under the old code. Regardless, the simple fact is that the rich never paid 90 percent of their income in taxes or anything even remotely close to that.

Yeah I hear that if a small business owner happens to have rental property that earns him over just $3500/year, he is automatically inelligable for any tax refunds

So how does one label himself and his property as an active investor ?

[GhostofDempsey]

Yeah I hear that if a small business owner happens to have rental property that earns him over just $3500/year, he is automatically inelligable for any tax refunds

So how does one label himself and his property as an active investor ?

Active real estate investors purchase and manage properties for rental income, or renovate them to flip them for profit. Active investors can also build new homes for sale. The active investor is hands-on, actively participating in making a profit.

[maracho]

Active real estate investors purchase and manage properties for rental income, or renovate them to flip them for profit. Active investors can also build new homes for sale. The active investor is hands-on, actively participating in making a profit.

So what is the difference in actively investing from just owning and profiting from rental property ?

[GhostofDempsey]

So what is the difference in actively investing from just owning and profiting from rental property ?

Beats me? Volume maybe? I don't know all the ins and outs of real estate investing.

[maracho]

Beats me? Volume maybe? I don't know all the ins and outs of real estate investing.

ok thanks I'll look into it

[maracho]

I don't know.

But it's apparent the middle class came from that Era

But you dont really know where all that money went after the the politicians got ahold of it

[BoxingTech718]

The middle class has been eroded by reaganomics and now even worse trumpanomics.
America squandered the boom of the dot com era by not investing and saving those gains.
Instead republicans came around and decided to give steep tax cuts to the rich
Every time the poor and middle class make gains it’s stolen back by the republicans
The logic of trickle down ecanomics by conservatives hasn’t worked yet
This country works best by catering to middle class families. When Mom and dad have money to buy all of the consumer junk, take the kids on vacations, and save for retirement. That is the American Dream.
Not cultivating a few absurdly wealthy like what is going on now.

[5burowz]

If you think socialism made America great, you should be deported to Venezuela.

[5burowz]

The middle class has been eroded by reaganomics and now even worse trumpanomics.
America squandered the boom of the sitcom era by not investing and saving those gains.
Instead republicans came around and decided to give steep tax cuts to the rich
Every time the poor and middle class make gains it’s stolen back by the republicans

Reagan and Volcker actually saved our ass by putting us in a recession which saved the dollar and stopped the inflationary cycle of the 70's that Johnson put us in in the 60's. Also, in the 80's, we were the biggest creditor nation in the world. Now, we are the biggest debtor nation in the world.

[HOUDINI563]

Thing is attempts to be close to the Socislism and capitalism model both failed. We have been and continue to be a mixed economy. A mixture of BOTH socialism and capitalism. It's THIS combination that has provided the longest and greatest success. A flexible system allows us to bend and flex as the world about us changes.