Taxes under Obama are skyrocketing. I suppose that because the April 18th tax deadline is around the corner, this oppressive thing we collectively do as a country to funds the states’ projects is on the forefront of my mind.
It's so sad to see liberal agenda attack the wealthy because it's a straight attack on people's ability to achieve the notion of the "American Dream."
How bad has Obama been on the highest income tax bracket? Here is some of what has happened to the top tax brackets since Obama went into office – and by no means is this everything.
- Obama raised the top short-term capital gains tax rate from 35% to 39.6%.
- The top long-term capital gains tax rate was raised from 15% to 20%.
- The top tax on non-qualifying dividends went from 15% to 39.6%.
- Death tax has even gone from 0% in 2010 to 40% now.
Trying to be successful in America is discouraged through higher taxes, which are enforced through jail time if people don't comply, so I suggest going by the rules. The only good thing I can say about taxes is that if you owe taxes, that means you actually made money.
Aside from becoming an expat, which is doable but a major life decision, or cheating, which I don't advocate for, you are going to likely owe U.S. taxes.
Some tips on keeping more of your money:
- Start a business. Even if it is one that makes minimal income, you might be able to justify many expenses off of your income, such as cell phone, Internet, home office, business travel, business meals, and even business entertainment. As long as they are ordinary and reasonable for your business, you should be okay. This could save you thousands of dollars in taxes you would have owed by just earning your income as a W2 employee.
- If you live in an area that is infested with high taxes, you have the option to move. Move to an area that respects entrepreneurship and business growth. Unfortunately, what Obama has initiated will impact the whole country, but within the country, there are states that offer much lower costs of living in an environment that don't overwhelm their citizens with local taxes and regulations.
- Regarding securities, minimize turnover in your nonretirement account. If you realize gains that were held less than a year, you will be subject to short-term gains taxes. If you can hold your winners for more than a year, you will qualify for the long-term capital gains, which can be lower if you are in higher tax brackets. The opposite can be true for losers that you want to sell. If you sell a security that you lost money on within a year, the deduction will be at a short-term loss vs. a long-term loss, which could mean a lower tax burden come yearend. If you do trade for short-term profits, you might consider doing so in your retirement account, which will compound tax-deferred.
You are the rightful owner of that money, and the more of it that you are able to keep, the more it will circle the economy, rather than burning up in government bureaucracy.