kira @thewalrus91 - Twitter Profile

6 months ago

Getting a big tax refund is NOT a good thing... Treasury Secretary Bessent just said tax refunds are up 22% this season. Trump is calling it "the largest tax refund season ever." Millions of Americans are celebrating like they just got a bonus check. But let me explain why you shouldn't be happy about this: A tax refund isn't a bonus. It's your own money coming back to you. When you get a $3,800 refund, it means you gave the government a $3,800 interest-free loan for 12 months. They used your money all year. Then gave it back. No interest. No thank you. That's $317 per month that could've been compounding in your investment account instead of sitting in the Treasury. Meanwhile, the government is paying over $1 trillion per year just in INTEREST on the national debt. They're borrowing at record levels while holding your money for free. The wealthy don't celebrate big refunds. They engineer their taxes to break even or owe slightly. Here's how the system actually works: W-2 employees get taxed first, then spend what's left. Business owners spend first, then pay tax on what remains. Same income. Completely different outcome. A W-2 employee earning $150,000 pays full FICA taxes on every dollar. That's 7.65% off the top before you even get to income tax. Your employer pays another 7.65%. Combined, 15.3% going straight to Social Security and Medicare. A business owner with an S-Corp earning the same $150,000 can pay themselves a reasonable salary of $80,000 and take the remaining $70,000 as a distribution. Distributions aren't subject to self-employment tax. That's potentially $10,000+ per year in tax savings. Exposed legally. Using the same tax code available to everyone. That's not a even loophole... That's literally how the system was designed. The tax code rewards business ownership, real estate investment, and strategic retirement planning. It penalizes people who only collect a paycheck and never look beyond their W-2. The people who build real wealth aren't doing anything complicated. They're just using what's available: - S-Corp structures to avoid 15.3% self-employment tax on distributions - Solo 401(k)s with contribution limits up to $70,000+ per year - Cost segregation on rental properties to accelerate depreciation - The Augusta Rule to rent their own home tax-free for 14 days per year - HSAs as a triple tax-advantaged retirement vehicle most people ignore None of this is hidden. It's written into the tax code. It's just not taught in school. And most CPAs are trained to file returns, not plan strategy. The average American has one income source: a W-2. That income gets taxed at the highest rates with the fewest deductions. The wealthy have multiple income streams structured across different entities, each optimized for how the tax code actually works. A massive refund is NOT something to celebrate. It's a signal your tax strategy needs work.

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thewalrus91 retweeted

Hakeem Jeffries

@RepJeffries

7 months ago

President Obama and Michelle Obama are brilliant, compassionate and patriotic Americans. They represent the best of this country. Donald Trump is a vile, unhinged and malignant bottom feeder. Why are GOP leaders like John Thune continuing to stand by this sick individual? Every single Republican must immediately denounce Donald Trump’s disgusting bigotry.

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kira

@thewalrus91

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