Quote:
Originally Posted by JBinKC
They have so many advantages. They pay a much lower percentage of their income to taxes
Many of them put their money in munis, invest in hedge funds (which beat the returns of mutual funds by a large margin) or buy stocks directly for long term gain intentions. They can buy real estate that is so desirable that it is insulated from price depreciation and they can write off just about any expense known to mankind through a business while the average guy can't.
Its also funny how they can circumvent the law and get away with it.
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Careful- what you see as circumvention another might see as creating a better opportunity for themself or someone else. Small businesses can hire a person or two, but they might need an incentive to do it.
I had an interview earlier this week where the company was small and they did things a little different than most.
Same job I have now, but 100% travel for close to a 100% raise. In addition expenses are covered by employer.
If assignment is long term, they give a housing allowance for the assignment (say $108/night for 3 years). Do the math- that allowance is $28000/year. If I were to get a corporate apartment, it would cost less than that. I could probably get a condo (buy it) for less than that annually too.
Then I could get a car (allowance of $25/day) which is $6500/year. I could lease a car for that, or buy one.
Then at end of assignment I would have a condo to sell and a car to sell which would make me more money than just that salary.
To you that might look like circumventing a law, to me that is just good business sense.