The idea of unfairness in the tax code is a huge misconception in the country right now.
The reality is the tax code is entirely fair. Any two people who do precisely the same thing, in the exact same way, will pay the same amount of tax. Every time.
It doesn’t matter who you are; W-2 wage income has the same tax rate scale for everyone. The same is true for investment income. The tax rates for that are applied equally. Nothing unfair about it.
The differences in the amount of tax people pay don’t stem from the tax code treating people differently; it comes from treating their activities differently.
Earning a salary, for example, is taxed at a higher rate than earning investment income.
This is where having the right information and using a proven wealth and tax strategy system makes all the difference.
Change the activity — shift your wage income to investment income — and you change your tax.
Not sure how to start? Book a call with the team at TFW Advisors® today!
Our team would love to help!