Millionaires who owe no federal income tax (CNN Money)

[Snoutport]

http://money.cnn.com/2011/05/09/pf/taxes/millionaires_income_tax/index.htm?iid=HP_LN

CNN just covered this article on air...but it was spun pretty much "feel sorry for the rich and their volatile incomes..."

But they did admit that most tax breaks and loops only help the rich.

sigh... being rich sure sounds easier than having to pay taxes and support the human race.

[shraby]

1. They should remember they human race supports them.

[dkf]

3. You should also remember Muni bonds allow states to function.

If the rich don't get the tax exemption, the states don't get to pay lower rates. Tax exemptions drive rich people to invest in bonds they probably wouldn't concentrate in were there no exemption.

[dkf]

2. Probably they have all their income from muni bonds.

If they want the full exemption they are stuck buying tax exempt munis from their own state, not very good to diversify risk.

It used to be where muni bonds had lower interest rates because they are tax exempt. But with the states in trouble and the possibility of default higher, some rates aren't so bad anymore.

But in general you get a lower interest rate and the benefit of tax exempt income. That is what keeps your state running. Keep in mind retirement funds generally wouldn't buy munis because they are already tax exempt.

[PuffedMica]

4. I thought the purpose of the Alternative Minimum Tax was for the freeloading rich to pay their share

The poor are tapped out when it comes to taxes. The unemployed have no income to pay taxes on. It is the rich people who are going to have to come across with their money to solve the economic problems we face.