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Topic: In other news ...

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longhorn320

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Re: In other news ...
« Reply #30086 on: April 01, 2024, 09:59:07 AM »
I gotta believe the short interest on the new Trump stock "DJT" is huge.  I'm looking at some put options on it, but they are expensive because everyone else is as well.


So you think its over valued?
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FearlessF

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Re: In other news ...
« Reply #30087 on: April 01, 2024, 10:01:19 AM »
absolutely 
"Courage; Generosity; Fairness; Honor; In these are the true awards of manly sport."

longhorn320

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Re: In other news ...
« Reply #30088 on: April 01, 2024, 10:02:36 AM »
I've noted before how the truly wealthy don't need any taxable income (they usually will have some, but don't need to).  So, their tax rates are inherently going to be low, or even zero.  Imagine I own a hundred million dollars in Apple stock.  I need say $2 million a year for my lifestyle.  I borrow off my stock holding that $2 million tax free.  I can do this for a long time especially if the stock appreciates.  I may pay 5% interest or so, maybe less.


as Ive pointed out sooner or later you would have tostart paying it off you can only do this for so long
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longhorn320

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Re: In other news ...
« Reply #30089 on: April 01, 2024, 10:03:41 AM »
absolutely
not asking the pot stirrer
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FearlessF

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Re: In other news ...
« Reply #30090 on: April 01, 2024, 10:05:22 AM »
as Ive pointed out sooner or later you would have tostart paying it off you can only do this for so long
unless the stock just keeps going up

such as Berkshire
"Courage; Generosity; Fairness; Honor; In these are the true awards of manly sport."

longhorn320

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Re: In other news ...
« Reply #30091 on: April 01, 2024, 10:11:21 AM »
unless the stock just keeps going up

such as Berkshire

you still have a debt burden to attend to or it would increase every year up to a point to become prohibitive
They won't let me give blood anymore. The burnt orange color scares the hell out of the doctors.

Cincydawg

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Re: In other news ...
« Reply #30092 on: April 01, 2024, 10:12:31 AM »
Not if the stock goes up more than the rate of interest obviously, which is not uncommon.  And basically, with a billion in net assets, you're never going to run dry before you die.  

longhorn320

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Re: In other news ...
« Reply #30093 on: April 01, 2024, 10:14:22 AM »
Not if the stock goes up more than the rate of interest obviously, which is not uncommon.  And basically, with a billion in net assets, you're never going to run dry before you die. 
then why borrow at two million a year with a billion nest egg theres no need
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Cincydawg

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Re: In other news ...
« Reply #30094 on: April 01, 2024, 10:17:43 AM »
To avoid paying income taxes.  

847badgerfan

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Re: In other news ...
« Reply #30095 on: April 01, 2024, 10:18:56 AM »
Greed.
U RAH RAH! WIS CON SIN!

Cincydawg

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Re: In other news ...
« Reply #30096 on: April 01, 2024, 10:19:57 AM »
I consider it smart money management, which is why it's prevalent among the wealthy.


FearlessF

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Re: In other news ...
« Reply #30097 on: April 01, 2024, 10:22:19 AM »
avoiding taxes is smart

we should all be doing that

lawfully
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longhorn320

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Re: In other news ...
« Reply #30098 on: April 01, 2024, 10:24:22 AM »
To avoid paying income taxes. 
what taxes are you avoiding when you borrow instead of living off your own money?
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betarhoalphadelta

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Re: In other news ...
« Reply #30099 on: April 01, 2024, 10:37:45 AM »
So, corporate taxes are more like 18% - not 6%.

Employees who work for corporations are paid and pay income taxes.

Corporations are evil?
I don't know that I'd say that... I think the chart is much more accurate putting them as "social insurance taxes" rather than corporate taxes. They're VERY different from a "corporate income tax". They're paid on behalf of the employee by the corporation, of course, but that's mostly an accounting trick to hide the actual cost of those programs from taxpayers. Since they only see the portion that shows up on their pay stub / W-2, they think those programs are half as costly as they truly are. 

Now, the one area I would quibble with is that social insurance taxes, whether paid by the employee or employer, are basically just "income taxes", and there's limited value in separating them out from that. Because they are by definition 15.3% of an employee's income (up to a limit for SS, which is 12.4% of that, of course). 

But for the purposes of the chart, I can understand why they're separating the two. 

 

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