- Million Dollars
- Tax Exempt
0 voters
Would you rather have $1,000,000 USD (Or local equivalent) that you don’t have to pay taxes for, or be exempt from paying taxes for the rest of your life?
question
will i have to pay tax on the 1mil dollars
2 Likes
hmmmmm
i wonder
4 Likes
The question is rigged because you don’t have to pay taxes on the million but, I owe 700 bucks to the government and this has crippled me a lot. I have no idea how I’m paying it back. So I’d take no taxes in a HEARTBEAT.
1 Like
The moment you are 100% tax exempt, you don’t have to worry about anything but bank fees and your own financial/employment incompetence.
You now have hundreds of extra dollars to spend on a yearly basis and by 5 years you’ve probably already saved a million in all the taxes you don’t pay.
1 Like
I did the math and I am pretty sure 1 million dollars is more than I could possibly spend in taxes for the rest of my life. (I am kind of old though)
2 Likes
Okay but does this affect the taxes I would have to pay if I founded a company?
Just pay back your loans with the million
1 Like
damn im down. I’ll pay.
Thank you Hugo for always looking out for my financial interests <3 hihi
“no taxes” voters are failing to see the opportunity cost of having a million around suddenly
if instead of spending you invest and re-invest the million, you’ll make more money then you’d save by not having to pay taxes (but still just having a normal job)
it’s not about the money it’s about not paying my taxes
3 Likes
Average beestation player’s attention span (less than 2 seconds)
also I mil > tax exemption
when’s the next time you’re gonna have a I mil $
1 Like
What kind of tax are you except from? The answer won’t sway my answer that much, since even being immune to sales/import based taxes will be worth it
Time to prove this with some FACTS and LOGIC.
Average American makes around $60k/yr.
Average American tax rate for top 50% of people is ~15%.
Assuming you start working at 21 and retire at 67, you work for 46 years.
(60,000) x (0.15) x (46) = $414,000
Obviously some simplifying assumptions were made such as your income not going up throughout your career, but still. Less than half of that million bucks?
Plus think of the opportunity cost. Money now is almost always worth more than money in the future since you can reinvest and earn compounding interest. If you invest in the S&P 500 you can generally count on in the long term getting 7.5% annual return. That’s $75k PER YEAR pre-taxes. And you can double dip and keep working! Let’s compare what the end state of these two scenarios are.
Million Bucks Now
Let’s assume you make make it into the top ~5%, hell even 1%, of people with the $60k/yr income from above. That’ll give you a tax rate of ~25%.
$1,000,000 at 7.5% for 46 years gives you $14,860,372. A 25% tax rate will take $3,715,093 out of that leaving you with $11,145,279. But wait! That’s not all! We get to add that $60k/yr income to it for a grand total of $2,070,000 if we use that same 25% tax rate.
End result: $13,215,279
No Taxes
Let’s say you are a mouth breather who decided no taxes. Well you get your $60k/yr for 46 years, tax free.
End result: $2,760,000
Too many simplifying assumptions were made to count here since this is back of a napkin math but the point still stands. Compounding interest is one of the most powerful forces known to man. Kickstarting your finances with even a million dollars is insane if you don’t touch it at all. Make that money work for you!
3 Likes
Yes, this does include the taxes you would have to pay for owning a company.
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