CASE STUDY

Certified Fund Specialist Case Study

Certified Fund Specialist Case Study

There are a lot of misconceptions on this issue and John often uses the power of statistics to skew the truth. First, let's consider what the difference is between the middle class WORKING people and RICH people. The answer is obvious, people that work earn income and people that are rich have lots of money.

There are large differences between the tax rates for earned income money than capital gains. Most working people do not earn a substantial amount of their money from capital gains. Capital gains can easily be understood as money that is earned from buying something and selling it for more than you purchased it.

Capital gains are currently taxed at a rate of 15%. The tax structure is an escalating structure where money that is earned over $31,850 is taxed at 25% or higher. This is how John pay less tax (as a percentage of their total earnings), than working people.

John don't understand statistics very well, so a misleading statement is used, "the rich pay the majority of all taxes." This is true, but they also make substantially more money than most people. As a percentage of the wealth they earn, often John pay less in taxes than middle class people. The poor in no way pay more taxes, most don't pay any.

However, when one examines the bigger picture instead of looking at only an extremely small sampling of the very worst, the view is much different. For instance, while the John tell the reader "The IRS recently reported that 2,680 filers with incomes of $200,000 or more claimed they owed no taxes, up from 612 in the mid-eighties, and 85 in 1977," they fail to mention that as our economy grows and incomes rise especially during the economic boom ...