04-15-2015, 06:56 PM
Our system heavily favors those receiving income from capital instead of wages.
On an 'early retirement' website, one article (a few years old now) pointed out that a married couple could have only around $20,000 in earned income before paying federal income tax.
But that same couple could receive over $70,000 in dividends from qualified investments before federal tax would be owed.
This is nothing new - even in the 1950s federal tax on long-term capital gains was only 25%.
On an 'early retirement' website, one article (a few years old now) pointed out that a married couple could have only around $20,000 in earned income before paying federal income tax.
But that same couple could receive over $70,000 in dividends from qualified investments before federal tax would be owed.
This is nothing new - even in the 1950s federal tax on long-term capital gains was only 25%.