Clinton's taxes

So Hillary just released her 2015 returns, and they look pretty good.  Last year the Clintons paid an effective tax rate of 34.2%, which is higher than what most millionaires typically pay.  It's certainly more than Mitt Romney who was criticized for paying a paltry 14% in 2011. Trump has been pressured to release his taxes in the name of transparency, because it'd be kind of hypocritical for him to talk about some of the stuff he talks about and then get away with paying negative taxes, Mr. Burns style.

Release the hounds!

I don't actually know how much Trump pays in taxes, though I'm sure he uses every trick in the book to avoid paying as much as possible, from deferring capital gains, which is very legal and something we should all try to do, to funneling his profits through charity and other borderline illegal schemes.  The reason the Clintons' effective tax rate was so high, from what I understand, is because most of their income last year came from speaking fees, which is what's called earned income.  Earned income is taxed at the normal rate, which caps out at just under 40% for federal.  However, most rich peoples' income comes in the form of unearned, or passive income from investments, such as dividends, interest, rental real estate, and capital gains.  Since the rich control Congress, tax laws tend to be favorable toward unearned income, most of which caps out at a relatively measly 20%.  That's why rich people tend to pay so much less in taxes (proportionally), but also why we all need to save and invest so we can take advantage of these tax benefits.

Did you know that if you're in the 15% tax bracket, you will pay nothing in federal income on capital gains?  It's true!  What that means is that a married couple who doesn't work but has investments can make up to almost $100,000 a year on their investments and not pay a penny in federal taxes.  That's insane.  Strive for that. 

Of course, non-qualified dividends, interest, and short term capital gains (stocks sold within a year of purchase) is taxed at the normal rate, but still...  It boggles my mind that it's possible to get away with paying little to no tax if you play your cards right and allocate your money appropriately.  And of course, the money you save on taxes can be rolled right back into your investments, making you even more money.

and the hounds!

Don't get mad at the rich for not paying their "fair share."  Or do; I don't care, and they don't either.  Your anger won't change a thing.  Politicians are bought by the rich and pass laws that benefit them.  Instead of getting mad, shoot to become one of these rich people who can take advantage of these loopholes.  The rich may be getting richer, partly due to their entrepreneurial mindset, high savings rate, and the aforementioned tax loopholes, but there's no reason you can't add yourself, your family, and your descendants into the ranks.  America has always been the land of opportunity, and while it may be harder nowadays to move up due to low entry wages and the extremely high cost of housing in big cities, it's far from impossible.  You owe it to yourself to achieve financial independence, and there's no reason you can't.