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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: regli who wrote (76692)	12/27/2006 1:29:55 AM
From: bart13	Read Replies (1) \| Respond to of 110194

I am actually pondering the household income depicted in the second chart. It looks to me like the top 10% really know how to avoid taxes, as based on these figures, wealth does not result in corresponding income... The relatively few very wealthy people I know have had me laughing good naturedly a few times at the wild things their CPA's etc. have them do in the tax planning arena... and it does work too. But on the long term, very few of them truly understand inflation. The top 1% had a net worth of about $5.6 million in 1962 and $14.8 million in 2004 per epi.org, very roughly a 300% gain... and the understated CPI is up over 500% since 1970.

To: regli who wrote (76692)	12/27/2006 8:09:19 AM
From: russwinter	Respond to of 110194

<10% really know how to avoid taxes, wealth does not result in corresponding income...? Long term capital gains taxed at 15%.

To: regli who wrote (76692)	12/27/2006 8:30:29 AM
From: KyrosL	Respond to of 110194

Wealth indeed can be and is structured so that it does not produce much reportable income. For example, the dividend yield of the S&P500 is less than 2%. If one holds stocks for the long term, as most wealthy people do, the income generation is pretty low. Another example is real estate holdings such as mansions, ranches, undeveloped land, etc. Those not only do not generate income but are generating losses, thus reducing the overall income of the wealthy. Even income producing real estate sometimes generates negative reported income because of depreciation.