Why can’t a middle class individual use the same tax avoidance methods as the ultra rich to pay little to no income taxes?
In: Economics
Another reason is that the rich often invest the profits from their business back into that business, or another business, which deducts it from their income because they aren’t profits anymore. The average person can’t invest half their money into a profitable business they own because they don’t own a business. There are plenty of people who own a small business, but many of them are profiting not much more than minimum wage per hour after all the time and efforts they put into their business is factored. Some of them are earning less than minimum wage even, before they call it quits. Why invest your valuable profits into your business when your business isn’t that profitable?
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