Jblink you make some good point.
Quote:
Originally Posted by jIM_Ohio
Instead of buying the condo in my example I could go to a hotel. Which is better for the local economy- buying the condo, IMO.?
|
How is spending a night to a hotel would serve "better for the local economy". A person pay $60 a night hotel room and leaves the next day. Any profit earns goes to corporate HQ outside the state anyway. On the other hand, owning a condo is a permanent fix; owner pay city/county property tax which fund local gov't coffers; home requires home maintenance services which serves local lanscaping or subcontractors like plummers; owner also must buy foods which serve local grocery and retail stores.
I would also add, rich people have far more resources at their disposal to take advantage of loopholes built within tax codes. Where rich people deals in millions of tax savings every year, whereas middle class earners often deals with hundreds or few thousands dollars tax savings. When most middle class earners deals with 1099 and schedule C less complex taxation, rich people deals with highly complex taxation code in a global scale. Especially if you add rich people that gives millions in charity, funding their own fundation, etc...