Personal Finance
10 Ways the Rich Avoid the Taxman
10 Ways the Rich Avoid the Taxman
Nobody likes taxes. However, when the super rich are stuck in forfeiting millions of dollars to taxes each year, they probably despise them even more than the average person.
That’s where their dough comes in handy: they can afford to have their legions of legal and accounting advisors to move around their money around through common loopholes in the system. This infographic shows how the wealthy avoid paying massive amounts of tax that they would pay if they just took everything as straight up income.
The top 10 methods to help the rich avoid taxes include: freezing the value of assets, sending money overseas, using a shell company or incorporating a personal brand, stock options, and deferred compensation plans.
Original graphic from: Top Accounting Degrees
Personal Finance
Chart: The Declining Value of the U.S. Federal Minimum Wage
This graphic compares the nominal vs. inflation-adjusted value of the U.S. minimum wage, from 1940 to 2023.
The Declining Value of the U.S. Federal Minimum Wage
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
This graphic illustrates the history of the U.S. federal minimum wage using data compiled by Statista, in both nominal and real (inflation-adjusted) terms. The federal minimum wage was raised to $7.25 per hour in July 2009, where it has remained ever since.
Nominal vs. Real Value
The data we used to create this graphic can be found in the table below.
| Year | Nominal value ($/hour) | Real value ($/hour) |
|---|---|---|
| 1940 | 0.3 | 6.5 |
| 1945 | 0.4 | 6.82 |
| 1950 | 0.75 | 9.64 |
| 1955 | 0.75 | 8.52 |
| 1960 | 1 | 10.28 |
| 1965 | 1.25 | 12.08 |
| 1970 | 1.6 | 12.61 |
| 1975 | 2.1 | 12.04 |
| 1980 | 3.1 | 11.61 |
| 1985 | 3.35 | 9.51 |
| 1990 | 3.8 | 8.94 |
| 1995 | 4.25 | 8.49 |
| 2000 | 5.15 | 9.12 |
| 2005 | 5.15 | 8.03 |
| 2010 | 7.25 | 10.09 |
| 2015 | 7.25 | 9.3 |
| 2018 | 7.25 | 8.78 |
| 2019 | 7.25 | 8.61 |
| 2020 | 7.25 | 8.58 |
| 2021 | 7.25 | 8.24 |
| 2022 | 7.25 | 7.61 |
| 2023 | 7.25 | 7.25 |
What our graphic shows is how inflation has eroded the real value of the U.S. minimum wage over time, despite nominal increases.
For instance, consider the year 1960, when the federal minimum wage was $1 per hour. After accounting for inflation, this would be worth around $10.28 today!
The two lines converge at 2023 because the nominal and real value are identical in present day terms.
Many States Have Their Own Minimum Wage
According to the National Conference of State Legislatures (NCSL), 30 states and Washington, D.C. have implemented a minimum wage that is higher than $7.25.
The following states have adopted the federal minimum: Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, Texas, Utah, Wisconsin, and Wyoming.
Meanwhile, the states of Alabama, Louisiana, Mississippi, South Carolina, and Tennessee have no wage minimums, but have to follow the federal minimum.
How Does the U.S. Minimum Wage Rank Globally?
If you found this topic interesting, check out Mapped: Minimum Wage Around the World to see which countries have the highest minimum wage in monthly terms, as of January 2023.
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