Real Estate Investors Pay No Social Security and Medicare Taxes?

“Now, what about Social Security and Medicare taxes? Well, my friends, we don’t pay those either, ever. Why? Because those are ignorance taxes. You see, what do I mean by ignorance taxes? You have to pay to be ignorant enough to have a job to pay earned or to pay ignorance taxes. Social Security and Medicare are taxes that were derived by the US government because it realizes the people were ignorant enough to believe that if they can work for the rest of their lives and ignorant enough to believe that they are going to have health insurance the rest of their lives, not realizing that someday along the way, like with everybody as you get older, there are people out there that are younger, they are better educated, they are more motivated, they work for less money, and they are going to take your job.

And when that happens, when you’re pushed out of your job at some elderly age, you’re going to realize for the first time that you have no passive strings of income and you’re going to be in trouble.

You’re also going to find out that your insurance policy is getting away and that’s going to be a problem because now, it’s hard for you to get insurance as an older person, especially unemployed, let alone the thought of paying for it.

So, my friends, they created something called ignorance taxes, which is this social safety net for people to fall on when they become old and unable to work and unable to obtain insurance. We call this Social Security and Medicare.

Now, why do they not tax real estate investors? Because they realized that if you’re smart enough to figure out how to make passive strings of income that you don’t have to work for, that you’ll never lose a job that you don’t have, and that the income you earn is going to continue to come whether or not you’re old or young and so you’re going to be able to afford to buy health insurance and not have to cancel your health insurance policy when you lose your job.

So because of that, right out of the blocks, real estate investors are saving all Social Security and Medicare taxes. How much is that? That’s 15.2 percent. Now, if you went out there and you think about this, you went out and you’ve started yourself a little business and that little business produced for you $100,000 a year, net, net, net, that’s what you got to take, you’d have to pay 15.2 percent or $15,200 out of that $100,000 gain just for Social Security and Medicare. In addition to that, you’ve got to pay earned income taxes that marginally by $100,000, that would be at least 33 percent.

So you’re paying 48.2 percent in personal income taxes on a $100,000 gain. Now, does it make sense to you that if you would only end up with $52,000, that all I have to earn is $52,000 to make the same thing you do? Think about it.”

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April 24, 2009 | Filed Under Medicare, Social Security Tax 

Comments

2 Responses to “Real Estate Investors Pay No Social Security and Medicare Taxes?”

  1. Howard Bennett on June 6th, 2009 5:08 pm

    I am a retired policeman.
    The city, did not pay into social surcurity or medicare. The city was to keep insurance on me after I retired. I received a letter telling me that after the end of June, I would not be insured, that they were going to drop me. I could keep the insurance, if I still want to pay the 100 percent. It will be over 7 thousand dollars a year. Is this leagal.

  2. velma moore on October 29th, 2009 9:26 pm

    i’m not a real estate investor nor any type of business person. i’m 68 years old and i still work. i’m trying to figure out someway not to pay any medicare or social security taxes after the way obama stuck it in our asses. i’ve gone tax exempt but my employer says i can’t stop social security or medicare without getting them in a lot of trouble. gotany suggestions.

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