Hi I'm Laura Rotter of True Abundance Advisors.
Like you, sometimes my breath is caught short when I look at my tax returns or other filings and see how much of my hard-earned money is going to taxes. Given that, however, I am so taken aback by the scarcity mindset that I feel like is behind many of the articles I'm reading right now about the potential tax increases from the American Families Plan. Look, the tax code has changed many, many times over the years. Not that many years ago, top taxpayers were paying over 90 percent in a marginal tax rate. Today, that same tax rate is 37 percent and the American Families Plan is talking about increasing it, of course, but to less than half of what that tax rate was in the 1950s and 1960s.
As taxpayers, we help finance the government to provide services that you and I believe in: to provide education, to provide health care, to provide a basic social safety net to the people that live in this country. The tax code also works to encourage and discourage certain behaviors. So, for example, the way the code is set up now encourages people to earn their wealth through investments, because investments are taxed at a lower capital gains tax rate. The majority of the citizens of this country earn their money through their labor and that is taxed at a higher earned income tax rate.
Now, these incentives, which also incentivize businesses frankly to move profit centers offshore and to hire labor offshore (profit can be taxed at a lower rate in a different country) so these incentives and disincentives right now I do not believe are working for us. They're working to create a larger wealth gap in this country than we've ever had and this is leading to more social unrest and I think it's something that we need to be aware of when we complain about being taxed at a higher rate.
So I'd like to encourage you to bring an abundance mindset to your taxes, to recognize the privilege of earning enough money and having wealth that you can pay to help the government finance its services both for yourself, services that you benefit from, as well as to help provide these services for others less fortunate than you. Be happy to discuss ways for you personally to work to reduce your individual taxes. It's part of the services I provide to my clients and I'd be happy to discuss that with you. So please, go out there and live your life on purpose!