These Tax Breaks Are a Big Boost to the Wealthy

Even though the new presidential administration has already made several tax cut promises that would greatly benefit the wealthy, the fact is, high net worth individuals already benefit from several tax breaks that favor the rich. In fact, there are numerous ways that the wealthy can, and are already saving on their tax bill.
Let’s take a look at three of the most tax-friendly laws for high net worth earners currently in the tax code. The Social Security earnings cap is one way the wealthy save on taxes. Because the government caps this tax at $127,200, those who earn $128,000 and those who earn 12 million will pay the same Social Security tax rate. That is a huge savings for the nation’s highest earners, which amounts to $62,000 in savings on every million dollars earned above the cap.
Next up is the capital gains tax rate, which favors the country’s highest earners as well. Because this rate is much lower than the personal income tax rate and most middle-income workers don’t earn their money through capital gains the middle class often pay a higher tax rate than high net worth individuals that earn all their money through capital gains.
Lastly, the mortgage interest deduction also helps the wealthy save on their taxes. Although this tax break clearly helps anyone that carries a mortgage, the wealthy usually receive a much greater benefit because the amount they pay in mortgage interest is typically much higher. Therefore, they receive a much higher deduction amount. Plus, if you don’t have enough itemized deductions to exceed the standard deduction amount you won’t get to claim the mortgage deduction anyways.
https://www.fool.com/retirement/2017/02/25/3-tax-breaks-that-hugely-benefit-the-rich.aspx
Why Structure Is the Enemy of Innovation | Richard Dasher
About Richard Dasher Richard Dasher has been Director of the US-Asia Technology Management Center since 1994 and served concurrently as Executive Director of the Center for Integrated Systems since 1998. He holds Consulting Professor appointments in Electrical Engineering (technology management), Asian Languages (Japanese business), and at the GSB (with the Stanford Program on Regions…
Inspiring a Sustainable Future Through Storytelling | Rita Whitney
About Rita Whitney Rita joined the Board in June 2010 and serves on the Mission Fulfillment Committee. She is CEO of Ravivant LLC, a Board member of United States Fencing Association (Central California Division) and Executive Director of the Stanford Fencing Association. Having grown up in New York City, Rita observed many situations where…
What Venture Capitalists Want | Wally Hawley
About Wally Hawley Wally Hawley is a co-founder of InterWest Partners (1979), one of the larger venture capital partnerships in the United States, formed to make equity investments in diversified U.S. growth companies. His prior experience includes seven years as President of SHV North America Holding Corp., a wholly owned subsidiary of a Netherlands…
Venture Capital’s Role in Nuclear Science | Ray Rothrock
About Ray Rothrock As a venture capitalist for more than two decades, Ray has assisted entrepreneurs in achieving their dreams and produced outstanding financial returns for his limited partners. He has personally discovered, created and guided more than 50 companies in the Venrock portfolio through their early stages of formation and emerging growth. Beginning…