and taxes. that s comes for all of us but taxes, not necessarily. i m talking about something called carried interest which you neither carry nor is it interest. it s a euphemistic that allowed hedge fund managers and private equity executives who earn their income off of money itself to pay tax rates, much lower than those of people who are in wages. which is most people. carried interest exist in the united states for more than 50 years as an incentive for long term investing. they want to add some noble goals but it s become a tool to save investment managers from paying the same rate of taxes as the rest of us. under carried interest, money made off of cline investments are taxed at just 20% for chopped earners. comparatively, the top of the individual income tax bracket, or wage earners is 37%. nearly double if you are tournament dollars in wages, your tax rate would be 37%. if you earned it managing money, it s 20%. to be clear, if you make money with the money, instead of with
or at least some things that don t change, which optically important. so your income tax thresholds have been frozen again, they will be for a few years. what that means is if you have a pay rise then there is a chance you are going to be dragged into a higher income tax bracket and pay more in income tax. there is also a bit of change which adds to the payment for health and social care, which is in dividend taxes. that may well affect people, business owners who pay themselves in dividends. so there are a few changes around and it is no surprise i guess that many experts are saying check your payslip very closely to make sure you re paying the correct amount of tax. make sure you re paying the correct amount of tax amount of tax. good advice. kevin, thank ou amount of tax. good advice. kevin, thank you very amount of tax. good advice. kevin, thank you very much. amount of tax. good advice. kevin, thank you very much. our- amount of tax. good advice. kevin, thank you very much. o
when you re on the lanes, they re right behind you. reunite with your team. go bowling. does earning $400,000 a year in america make you rich? that figure is the threshold in recent proposals by president biden and the democrats to raise taxes on the, quote, unquote, wealthy and corporate america to fund the administration s big spending like on the current infrastructure bill. here s how the president framed it during his address to congress in april. i ll not impose any tax increase on people making less than $400,000. but it s time for corporate america and the wealthiest 1% of americans to just begin to pay their fair share. just their fair share. currently, the highest income tax bracket at 37% starts at