I had a way around this problem, but then I had a simply dreadful boating accident. It’s all at the bottom of Loch Ness.
Incidentally I have been to Loch Ness!
What took you to Loch Ness?
A summer spent studying Scottish geology
Not sure what you term a “passthrough.” You mean an S-Corp? You know Trusts have a higher tax rate on earnings, right?
Horrors! The wealthiest own companies that pay them as well as other workers! WE SHOULD OUTLAW THIS TRAVESTY! Founder-owned companies should be made illegal!!!
Even if a C-Corp funds pension for the owner (Incidentally, they MUST also necessarily fund pensions for the workers), the pension money is taxed as it is withdrawn in retirement, is it not?
The term “passthru” is the JCT’s not mine.
But in looking at the FIT tax rates of 19 to 30% for the top 1%, I’d say the chances are that a lot of it is capital gains and/or losses passed thru to the trustors. Regardless of what you call it, it’s far less than the 37% of the top marginal income bracket that ordinary income would be.
The average corporate CEO makes 344 times as much as their average hourly worker. As the owner all you have to do is figure out how much you want and pad it with the amount of FIT you’ll have to pay… problem solved! 
The “common folk?” 
Oh stop being sensitive and read, then understand the context of the comment.
7% of Americans own businesses.
93% work for someone else - like I did for over 20+ years in a salary position.
In that context, it is more common that people work for someone else hence “Common folk.” We all good now? Would you like milk with your coffee?
It only took me 10 years, the rest was on commission or as a contractor.
Most of the business owners I know, and have known, bounce from one money crisis to another and about a third of them are as successful financially as those individuals who put themselves in a position like independent contractor, marketeer or consultant.
An independent private enterprise has too many problems and too low a payback for me.
About the coffee… no thanks, I gave up coffee 5 years ago.
ha, thanks for the fun reply. My point was that the vast majority of us have zero idea of how much government is spending or taking. Now Kamela wants to give our money to help young people buy homes. Open borders, etc. People can always spend other people’s money faster and with happiness not realizing they are raping their children’s future. I’m 65, the previous generation is draining SS and feel entitled to it. It’s an attitude thing.
I’m over 80, and attitudinally I’m a tad less pessimistic about the role of government in our lives and the fact that part of our population will always be dependent on some kind of “government handout.”
History shows that burning our country’s money is a habit practiced by both political parties. Some like to to give it away to their wealthy political campaign donor buddies and some like to give it away to irresponsible single parents and people who won’t or can’t work.
Since my early personal experience is not rooted in the wealthy political campaign donor side of the equation but my over-30 years tend to that side, I am more supportive of the people receiving money who need it. That is why I feel the money is better wasted on the “government handout” side of the ledger.
I did not bring parties into this, but I will criticize you for this comment: “I am more supportive of the people receiving money who need it.”
I really want to thank you for your generosity that comes from my pocket. This money is not coming from the government - it comes from people. You are old enough to know better. Don’t be intellectually lazy.
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You sound unhappy, don’t be a bitter old man.
I’m always unhappy when people take my money and give it to others. I’m a generous person, but someone claiming to be altruistic using my money helping others tends to make me cranky.
Other than that, I’m perfectly happy when people leave me alone :).
Thought this thread was about the debt and taxation policies, not about income equality. Don’t know any business owner personally that makes 344 times what their average worker does. Doubtless some CEOs of large corporations might. Why is that your business unless you are a shareholder?
At one time, I calculated that if the CEO of Wal-Mart forfeited his salary, it would increase each Wal-Mart employee’s salary by $10 a year at most
I am more supportive of people receiving money who EARNED it.
Who “needs” other people’s money? Who decides who “needs” it? Who decides how much they “need?” Remember there is a substantial administrative cost to any government welfare program. One person must be made $115 poorer to make another person $100 wealthier.
Generally, it is easier to decide who deserves help on a LOCAL level by PRIVATE entities. Formerly this was done by Civic Aide Societies. Founder of Chik-Fil-A Truitt Cathy used to talk to school principals about which families were hurting, before he used a volunteer to send groceries to them. That way none of his funds were wasted. You think government agencies are this careful???
I think we seem to agree. If I want to fill up someone’s tank to get them home, it is on me. And I have done this - but the key is, I chose to use MY money to help someone else. A long time ago, the legal system supported the notion that government cannot take from one to give to another. The danger in what you are thinking is that doing such a thing for a good cause justifies it. Theft is never justified. And government taking in tax $$ and giving $1 to another person is theft.
It all comes down to a personal decision. When government gets involved, they have lots of guns and zero accountability. And those people in power get insanely rich and as long as people get the scraps, they keep getting reelected.
In 2024, the federal deficit is 1.9 trillion. That’s for this year. Congress - cannot pass a unified budget, it’s all continuing resolution BS. We won’t take care of our veterans, but we have no issue shoveling billions to Ukraine (off topic, let’s not go there). We now have Kamala promising OUR money to help new home buyers. Fiscally, Trump isn’t any better. The problem is the federal government.
You must remember Milton Friedman’s hierarchy of how carefully money is spent.
It is spent MOST carefully when you spend money YOU earned on YOURSELF.
Next is when you spend money YOU earn on someone else.
Next is when you spend someone else’s money on something for you.
And least carefully is when you spend money someone else earned on someone other than yourself.
And guess which scenario fits government spending?
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When wealthy people borrow against their accumulated wealth for money to spend rather than paying capital gains on their assets, that money is not “earned”. Where does “Wealthy people borrowing money” fit in the hierarchy?!?!?
When wealthy people (or poor ones for that matter) borrow against their assets, they decrease their net worth. How is this the same as earning income?
Suppose you borrow money using a home equity loan for a vacation. (A stupid thing to do, to be sure.) Your net worth is less, right? You have essentially decreased your equity in an asset, not earned more money.
So in the example, it is Friedman’s heirarchy #1, money spent most carefully.
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