The median combined household
income of self-made millionaires in the U.S. is
“The Millionaire Next Door” by Dr. Tom Stanley
Democrat or Republican?
No matter where you stand
politically, you probably get your feathers ruffled when you
hear politicians say this:
“It’s time the
rich started paying their fair share of income taxes”.
While that sounds innocent enough, there are two 800-pound
gorillas in this short sentence.
No one in either party has ever said “Rich people should
NOT have to pay their fair share of taxes.” The debate is over
what constitutes “fair”. While Democrats and Republicans may
never agree on that, the other gorilla is indisputable.
“Rich” refers to accumulated
wealth, and income taxes are not a tax on wealth. They’re a tax
While there is a correlation between wealth
and income, they are NOT the same thing.
If they were,
all high income earners would be rich. But that’s simply not the
case. A study by CNBC found that only 6% of millionaires are
lawyers and only 4% are doctors
There’s also the fact
that what constitutes a high income is a lot less than what most
people think. Consider this statistic from the IRS:
If your combined household income is $66,193, you're
in the top 25% of income earners.
means that if your after-tax income is around $48,000 (depending
on your state and local taxes), you make more than about 75% of
I think Democrats and Republicans can agree
that does not make you rich.
My point here has nothing to
do with taxes or politics. It has to do with using your head and
not automatically believing what people tell you – even if it’s
someone you trust.
As nasty as politics have become
recently, there’s one good thing that has come out of the
situation. The term “Fake News” has caused people to start
questioning what they read and hear.
It was generally
assumed for many years that most news reported in newspapers and
on TV or radio was fairly accurate, even if sometimes biased.
But in the age where millions of people turn to Twitter and
Facebook as their primary source of news, it’s more crucial than
ever to THINK about what you’re hearing and question it.
No matter what you do for a living, You are the CEO of You, Inc.
And all CEOs need good information to make good decisions.
To Your Success,
raising things like property taxes or estate taxes do impact the
rich, politicians are usually referring to income taxes when
they talk about the rich paying their fair share
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