This is a short YouTube commentary by Ramit Sethi arguing that wealthy people respond to tax increases pragmatically rather than emotionally. In “reality number six” he claims the rich rely on accountants to adjust planning and often do not notice sizable tax increases — citing examples from about $50,000 to several million dollars — to illustrate how high earners view money and taxes.
Why do wealthy people keep making these empty threats? Because you believe it. The answer reveals something important about how the rich actually think about money and taxes. Reality number six, rich people don't just make emotional money decisions. You know, a lot of people think millionaires are storming off to Florida when they're mad about a tax increase. You're raising my taxes? Fine. I'm out of here. But here's what the rich actually do when their taxes go up. First of all, they don't call their accountant. Their accountant calls them. They, their accountant will often find ways to adjust their financial planning to account for it. But more importantly, this is something you really need to understand. A wealthy person does not even notice if they're paying an extra $50,000 in taxes. In many cases, $250,000 have no effect on them. As you move up the wealth chain, you would be shocked that people paying an extra four or five million dollars per year, they don't notice it.
