1. Wealthy people invest money instead of spending it.
2. Wealthy people invest in themselves.
3. Wealthy people invest in relationship.
Ran across an article
Tax increases on the wealthy?
By Kay Bell · Bankrate.com
Thursday, March 17, 2011
Last December as Congress was debating what to do about expiring tax laws, a CBS News poll found that 73 percent of Americans believed the budget deficit was a very serious problem.
How did more than half of those surveyed suggest reducing the deficit? By letting the Bush-era tax cuts for those in the higher income tax brackets expire.
What did Congress do? Lawmakers opted to extend the tax cuts for all, including the wealthy, even though the continued tax breaks add billions to the deficit.
Now 10 Democratic representatives have decided it’s time to revisit the upper income tax rates.
Rep. Jan Schakowsky, D-Ill., is the lead sponsor of the Fairness in Taxation Act. She proposes the following income tax rates:
•45 percent on incomes between $1 million to $10 million.
•46 percent on incomes between $10 million and $20 million.
•47 percent on incomes between $20 million and $100 million.
•48 percent on incomes between $100 million and $1 billion.
•49 percent on incomes of more than $1 billion.
Schakowsky’s bill would also tax capital gains and dividend income as ordinary income for taxpayers with income over $1 million.
The 2011 top tax rate is 35 percent on earnings of more than $379,151 ($189,576 for married taxpayers filing separate returns). The top tax rate on most long-term capital gains and qualified dividends is now just 15 percent.
While Schakowsky’s bill has generated some support from progressive public action groups, she faces a challenge to move it in the House of Representatives. Rep. Dave Camp, R-Mich., the chairman of the tax-writing Ways and Means Committee, wants to cut the top tax rate to 25 percent for individuals and corporations.
But both proposals could at least be starting points on the larger issue of comprehensive tax reform. That’s what many folks, including myself, see as the eventual answer to deficit reduction.
Make sure you get all the latest tax news and tips this filing season by subscribing to Bankrate’s free Daily Tax Tip newsletter.
Read more: http://www.bankrate.com/financing/taxes/tax-increases-on-the-wealthy/#ixzz2JWMmuFAQ
The local buzz in Texas, most of the millionaires are moving money out of the country. The top 2 places 1. Panama they have a great relationship with the US and expats can relocate and live as residents and maintain their US citizenship. 2. Canada, they are also US friendly, appreciates the value of a dollar and will gracefully reward your millionaires for allowing their money to sit in their banks. About Panama Banks:
Panamanian Banks are one of the most stable banks in the world, being home to the second largest international banking center in the world, next to Switzerland. Panama also has the best bank secrecy laws available in the world today.
There are approximately 85 international banks in Panama. We have relationships with a variety of international banks in Panama through which our clients may open corporate accounts at. However, we mainly open corporate accounts for our clients through our recommended banks, with which we have excellent working relationships.
Most of our clients are handled by the Private Banking Departments of our recommended banks. A bilingual, English and Spanish-speaking Private Banking Official is assigned to each of our client’s accounts, and our client is provided with that persons contact information for direct communication for executing banking transactions.
Bank of America Canada (French: Banque d’Amérique du Canada), was a wholly owned U.S. bank subsidiary, headquartered in Toronto, Ontario, Canada. It was a Schedule II bank under the Canada Bank Act to accept deposits which may be eligible for deposit insurance provided by the Canada Deposit Insurance Corporation.
In 2001, Bank of America Canada re-established itself as a branch of Bank of America, N.A. of Charlotte, NC. Canada’s revised Bank Act had created a new schedule, Schedule III, for banks that are foreign bank branches of foreign institutions that have been authorized under the Bank Act to conduct commercial operations deemed banking in Canada. These branches have certain restrictions under Canadian law.
Bank of America in Canada and Panama, how easy that’s going to be to transfer funds outta the country. I talk to Investors, they are angry, still pouting over President Obama winning the election. Dr.’s stating that healthcare will never be the same. They are packing up the money and not thinking twice about depart the good old US.