Where are these tax breaks for the Rich I keep hearing about?

Question

I have a new, though not unpleasant problem. For 20 years I worked in Corporate America. Strictly Middle Class. Wife 2 Economy cars, 1 dog, 2 cats. In 2005 I got my neck broken in a car accident, (Kid on Drugs) was Paralyzed 4 months, in physical rehab 1 1/2 years.
Got bored, took myself off "Pemanant Disability" and my wife and I started a little company. We market products for disabled pets, and starting another to market battery powered fun transportation.
Long story short, by 2009 it looks like we will move to top tax bracket. So I figured I get all the breaks the "Rich" get that everyone talks about.
Bottom line is after 8 hours with my accountant, I find quite the opposit is true. As an S-Corp. I pay ALL my SS tax, 15%, I begin to lose my tax deductions, because I had some success, I pay my own Insurance, Retiement ect... My CPA tells me that there are no tax breaks for the "Rich", unless I spend money to deduct expense.
Yes, I voted for Bush. So where are his tax breaks?

People. I did not say any of this to bragg. My point was, nor is my accountant bad, he is quiet good, and my prior career was as a Financial Advisor. No I am not rich by any means, and that is my point. Yes there are ways to shelter and such, but any company whether Fortune 500 or 2 person like ours, there are no Miracle breaks. That is a myth. If my business and income is taxed at 38%, that means I spend $1 to save 38 cents in taxes. I was a bit toungue in cheek here. I am curious as to why there is such a outrage over personal or corporate wealth, and some miracle tax breaks. THERE ARE NONE.....

Mark B. I can assure you my story is true. So I am A Neo-Con for working my you know what off, next year will add employees (creating Jobs, with no Gov. help)? And again, I ask you name 1 tax break, just 1 that I get, that you do not. Thank you for the insult, it explains a lot. And no, I do not feel guilty because I worked hard for a small amount of success. I do feel greatful. My next venture is to market vehicles the run short distances on batteries, not gas. Because I am helping the environment, not using Gov. $, is that what upsets you?

Friendly, looks good on paper. Now please extend your answer to include the "Givens" on this report. So, AMT for the Middle Class was raised 8% in 2005. And regarding Dividend Income, Remember you can't give a tax break to someone who does not own an equity, get real. Second a dividend is already taxed once as Corporate income, then taxed again as income to the owner (Shareholder). So try again on that one. Thats like saying the middle tax got a tax break the poor didn't because of home mortgage interest deduction. Well if they don't own a home they can't get an interest deduction. Does that mean it's "Reserved" and withheld from the lower class?

Answer 1

When you get to the point where it is coming in faster than you can spend it. Then you will really be spending, as a lot of large ticket items you buy, you will be able to write off as non-taxable items. A couple Million a year is not rich by those standards. By the way, here sits one American that is proud of the comeback you have made and you must be proud of your wife for sticking by you . Much success to you both with your companies, marriage and family.

Answer 2

Seems you need just over $1million to start feeling it and it gets better the more millions you have.

May 10, 2006
The Republican tax bill provides over $50 billion in extensions of capital gains and dividend tax breaks that do not expire until January 2009. In contrast, the measure only provides one year of relief from the Alternative Minimum Tax (AMT), relief that primarily benefits middle-income taxpayers...
...Specifically, they noted that the average American family (those making less than $50,000) will save an average of only $10 per year from the extension of the capital gains and dividend rate cuts. In contrast, taxpayers with annual incomes over $1 million (about one-tenth of one percent of all taxpayers) will receive approximately 43% of the total benefit of the extended rate cuts, saving an average of $41,400 a year.

Edit:
i am not an accountant nor a tax specialist and just try to understand what they say in reports about tax codes.
I pay my companies accountant to do all that for the company (i paid taxes on just under $750k this year, on my business). *My state takes among the largest amount of taxes in the country on top of feds, too.

I have no real complaints about the amount i had to pay for running a profitable company nor would i care about paying more if it was spent on what i, personally, feel are the right things - schools/roads/energy infrastructure - and hopefully one day I'll make enough to get the good tax breaks allowing me to give more to my community (God bless America and capitalism).
*I do wish they would raise the non-profit/charitable contributions so i could write off more and be able to help the community more quickly.

I did look up "Givens" (local term?) and asked my accountant, still could find nothing on it nor did he know about it/them, sorry i could not elaborate on that term or a reference off it.

In general the top crust gets more while the middle get less, yearly ... Lower class is an issue of it's own when talking tax/relief programs.

Do you have a link, from any government source (left/right/middle/Dem/Rep - mine was from House Dems), to the contrary?

Answer 3

Well, the richest 5% pay 95% percent of the income tax, so who could get a tax break? The other 95%? What would you give them?

What you've described about yourself isn't nearly "rich" enough. Don't flatter yourself.

I waited 8 years for Clinton's "middle-class tax cuts," promised in 1992. No problem, though -- I've fallen out of the middle class, and I don't care any more.

Answer 4

40 two % of 250k is $one hundred and five,000. then you fairly upload community and State. In my State that is $48k.Your $250,000 is now $ninety seven,000. upload the extra 3 % that is $7500. Now that is $89,500 then you fairly upload employer and inventory taxes yet another 6 %, yet another $15,000 you're at $seventy 4,500. whilst it is sufficient for the government and the $20k workers. Yeah it is purely 3 % until eventually you do the mathematics. you already know the Congressional millionaries supply themselves a $5000 a 365 days pay develop each and every 365 days and will develop their retirement advantages each and every couple of years. they ought to be those being taxed at an more suitable fee. See, once you do the mathematics you do in contrast to listening to the fact.

Answer 5

You need a better accountant. The tax breaks are not just hand outs. There are generally things you have to do in order to get them. Donations, community services, job incentives, incentives to stay in the community things like that. Your company may not be big enough. Also if you're not incorporated you are probably going to pay more. You can make yourself an employee and pay taxes on the salary you pay yourself rather than on the money your company is making.

Talk to a better accountant.


Good LUCK!

Answer 6

Fire your CPA & hire a good financial advisor. They're there, believe me, in form of tax free shelters, tax defered annuities, trust funds & other products depending on your income. Of course, if you're not worth at least a few million you're not really rich & it won't apply.

Answer 7

im not putting you down, congrats. on your success, and all that. i wish i could get into an income bracket that is over the poverty line. ive worked my *** off all my life, and your in a top income bracket by marketing products for disabled pets. i now realize not even jesus can help me now. thanx

Answer 8

Tax breaks for the rich are a thing of the past. The gov't had gotten wise to them and introduced the "AMT" to offset all the rich-folk tricks used in the past.

Answer 9

if you 'pay all of your social security' that means that you earn $90k or less.

a tidy amount of money, but hardly puts you in the same tax bracket as dick cheney and warren buffet...

Answer 10

When he cutt taxes in his first term, EVERYBODY got back a certain percentage... if you make 10,000/ year.. you gte back something like 200 dollars... if you make 10,000,000 you get something back more like 20,000