WHY DO WE NEED TO PAY TAXES?
Death is inevitable so is taxes that couldn’t be so real from the truth. For example, if you have heard these names then you also know that they too tried to evade taxes. Wesly Snipes, Steven Baldwin, Fat Joe, Ja Rule, Lauren Hill, to name a few and the list goes on and on. Taxes have been around since the 1950s since then individual income taxes have been the primary source of revenue for the U.S.A. It is said that roughly 80 percent of all federal revenue comes from individual and payroll taxes which are used to fund social programs like Medicare and social security.
By law, any American whose grosses income exceeds $10,000, $25,000 for married filing jointly or more than $400 for self-employed individuals must file a federal income tax return. In today’s day and age, that means everyone and everything pays taxes. See we can get into the intricacies of taxes but we are just not going to do that. Nonetheless, understand this animal too have inherited fortunes and are subject tax. In Pennsylvania “animals who inherit money from their owners pay death taxes like everyone else. Many pet owners would not hesitate to say they love their animals as much as the people in their lives. But a Pennsylvania court recently made it clear that while pets are not people, they must still pay taxes”. This is just one of 6 states that collect inheritance taxes. So Bubbles the monkey owned by Michal Jackson that was left 2 million dollars of inheritance could have been taxed in a particular state.
Although, it is our civil duty to pay taxes. Without taxes, we would be an uncivilized society. Yes, and I know some may not agree with that point of view but no one has died from paying taxes we just pay until we die. The biggest change to the tax code to date is when in 2018 President Donald J Trump signed the Tax Cuts and jobs act, which represented the most significant change to the tax code in more than 30 years. So, in actuality, this would be the best time in 30 years to save on your personal and business returns. Furthermore, the new tax law doubled the child tax credit to $2,000 for each child in a household under 17 and tumbled the estate tax for our wealthier individuals. That means with the correct tax planning and deductions you would be saving a boatload in this season of giving.
It would be patriotic if we paid the minimum amount of taxes. By doing so you would be contributing to the country as well as benefiting from some liable tax credits available to you the business owner or individual. We all know we live in volatile times and every penny counts. Most Americans don’t even have a saving fund for an emergency if one may arise. It is key that we understand our tax liabilities and approach with a strategic methodology. One can argue that we do indeed have to pay taxes but we don’t have to give it all up to uncle Sam at the beginning of any new year.
In conclusion, our number one piece of advice is to 1. Save, save, save! 2. Know your tax liabilities and approach to maximize your tax credits. 3. Be debt-free from the IRS. 4. Credit is king in the U.S.A please don’t forget that. With these few tips, you too can be on the way to saving and financial freedom. Learning the best practices on how to save should be the number one factor in any financial journey. So we leave you with this wonderful quote from Randy Thurman “A penny saved is worth two pennies earned . . . after taxes. ”