If it's harmful, the government slaps a tax on it. Gasoline... the feds get $0.184 for each gallon sold. That's about 7% of the retail price. Cigarettes... Uncle Sam gets a buck for every pack sold. It's about 20% of the total price. Gambling... Washington gets 25% of anything you win. And remember when states rejoiced that a 10% tax on soda reduced consumption by 10%? If a soda tax truly is a victory and not simply a change in consumer tastes, it begs a question. If taxing something truly reduces its demand, why is it that the government has so many ways to tax our income? Does the state's insistence on raising property taxes, for example, mean it doesn't want folks to own real assets? Of course, anyone who pays attention knows the rhetoric used when passing a new sin tax is based on lies. The government doesn't tax sin because it wants us to stop sinning. It taxes sin because it knows we're all sinners. It knows we'll keep paying and feeding its spending addiction - no matter what. Our keepers know that when it comes to taxes, we'll take more of a squeeze in some spots than in others. We'll buy that beer despite the hefty tax. But tax those Brussels sprouts... and we're gone. When it comes to investing, this is the concept that troubles folks the most. The government has done a fine job of baffling American savers... tweaking the free market... and creating economic incentives with one hand while taking our money with the other. While it's good business for the folks collecting a government paycheck, it's horrible news for the average investor. It makes investing far more complex than it should be. In many ways, it leads to what we call "analysis paralysis." That's when there are so many options and complicated choices to make that our mind simply closes up shop and walks away. When it comes to investing and saving for retirement, the government has made the waters so muddy and choppy that many folks won't even dip a toe into them. There's no simple solution. Washington won't rewrite its tax code anytime soon. But with this guide, we can make the best of a very bad situation. Taxes and Investing 101It's impossible for us to cover all the nuances of the very best ways to manage your portfolio to reduce your tax burden. Our lawyers would tell us to remind you to consult a tax accountant for the very best advice. We tend to agree... But if you're not starting with much, a trip to the accountant will cost you far more than it'll save you. And if you are starting with much... we bet you already know a good accountant. So we'll begin with the basics... which will serve as a compass to get you headed in the right direction. Want more content like this? | | | |
Andy Snyder | FounderAndy Snyder is the founder of Manward Press, the nation's premier source of unfiltered, unorthodox views on money and what it means for a free society. An American author, investor and serial entrepreneur, Andy cut his teeth at an esteemed financial firm with nearly $100 billion in assets under management. He's been a keynote speaker and panelist at events all over the world, from four-star ballrooms to Senate hearing rooms. | | |
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