Taxes

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Last Updated: Thursday, 31 March 2022 21:04

Published: Wednesday, 09 September 2020 21:44

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Taxes:

Taxes are the favorite topic among rich people. That is where you show your smartness. Richest people pay the least in taxes. so, if you want to save in taxes, your best bet is to get rich !!

All across the world, governments work for rich people. Actually rich people are the government. Governments print money, give it to rich people, rich people pass a tiny fraction of that to poor people, and government collects back whatever little this poor people got from rich people in form of taxes. Rich people are taxed very little, and even if they were taxed heavily, most of the money they make is anyway free money given to them by the government. So it's not like they are paying back their own earned money. Thanks to modern economics, it's good to be rich :)

When we talk about taxes, we are talking about Income taxes that you and I pay on our earnings. there are many other kind of taxes, as property taxes that we pay annually on our houses, sales tax that we pay on anything that we buy, etc.

Most of the countries of the world levy income taxes on any income that an individual makes in a given year. You are taxed only on realized income. As an ex, if you bought gold, and that appreciates in value every year, you won't be taxed on that appreciation. You will be taxed only when you sell it, and will be taxed only on the profit that you earned. I'll be talking about income taxes in USA and income taxes in India. In India taxes are very high compared to USA for the same income. In USA, you can get away with 15% Federal income taxes on $100K USD of income, as you fall into lower middle class category. But the same income in India will put you in top 0.1% of earners, and will likely result in 30% or more in income taxes.

There are 23 or so countries in the world that don't levy income taxes. However, they do levy all sort of other taxes to make up for income taxes. Many of these are oil producing countries in middle east, while some of them are tourism dependent countries. Few ex are UAE, Qatar, Kuwait, Bahamas Islands, Cayman Islands, Maldives and bunch of small countries.Taxes in some Europeon countries are as high as 70%. So, USA is in the low tax countries of the west where max tax rate is 45%. Actually, if you are super rich, you pay close to 20% in taxes.

Following Sections are covered:

1. USA Income taxes:

2. India Income Taxes:

3. Tax calculator

4. Filing USA taxes

2. Filing India Taxes