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Trump says he may cut income tax ‘completely’ because tariff revenue will be ‘so large.’ Here’s how the math adds up
Yahoo Finance· 2025-12-06 14:11
Core Insights - The article discusses strategies for everyday investors to lower their tax bills and build wealth, emphasizing the importance of utilizing assets that the wealthy have historically leveraged [1][5]. Tax Revenue and Government Spending - In fiscal year 2025, the federal government collected $2.656 trillion in individual income taxes, accounting for approximately 50.7% of total receipts of $5.235 trillion, while corporate income taxes contributed $452 billion and tariff revenue was $195 billion [3]. - The federal government faced a deficit of $1.775 trillion, with total outlays reaching $7.010 trillion [2]. Investment Strategies - Scott Galloway suggests that investors can borrow against appreciated assets instead of selling them, allowing them to access cash without triggering capital gains taxes [5][6]. - This strategy enables continued growth of investments while potentially incurring lower interest costs compared to tax liabilities from asset sales [6]. Real Estate Investment - Real estate remains a favored asset class for wealth building due to favorable tax treatments, including deductions for rental income and depreciation [11]. - Crowdfunding platforms like Arrived allow investors to participate in real estate with minimal capital, starting from as little as $100, without the responsibilities of traditional property management [12][13]. Investment Platforms - First National Realty Partners (FNRP) offers accredited investors opportunities to invest in grocery-anchored commercial properties with a minimum investment of $50,000, providing a way to diversify portfolios without landlord responsibilities [14][15]. - Range provides high-income households with tax management and investment advisory services, offering flat-fee pricing and tax loss harvesting opportunities [17][18].