I Was In The 47%


Here is the video clip of Mitt Romney talking about the 47% who pay no income taxes.


Let me give a little tax advice to people, but first I must admit I am totally unqualified to be giving such advice to anyone.

I am retired and have no income other than what my investments bring me plus Social Security and a miniscule pension.

I have investments in taxable accounts and in tax deferred accounts. After the stock market crash in about the 2008 to 2009 period, I decided to sell some of my investments in my taxable accounts in order to realize huge losses. In my tax deferred accounts, I took free cash and invested in stocks to compensate for what I sold in the taxable accounts. I did not invest in the same stocks so I would not run afoul of the wash rule. In effect these sales and purchases left my investment allocation at exactly the same place it was before making the trades.

This let me shift some of my income into the tax deferred accounts and out of the taxable accounts while realizing tax deductible losses and not realizing non-deductible losses.

For several years I paid zero income taxes at both the state and federal levels.

Unfortunately President Obama has reigned over huge increases in the stock market. It has gotten so bad that I eventually ran out of tax losses to compensate for my taxable earnings so that I have had to pay income taxes again. I don’t know why, but somehow this situation does not make me angry at President Obama. In fact it makes me want to vote for him again.

I also don’t understand about being retired and having to live on a fixed income. I invest in companies who pay increasing dividends every year. So my income is also increasing every year. I may even be getting bigger percentage raises now than when I was working.

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