The next biggest obstacle we have is taxes. We’ve already established the fact that we are paying somewhere in the neighbourhood of 50% in taxes between State, Federal and FICA. Guess how much the big boys are paying in taxes? About 4% - 5%!
The work that we do and the things we’re about to teach you comes from two U.S Supreme Court decisions. This isn’t stuff that we’ve made up; they are backed by the U.S. Supreme Court.
The first decision says that it is your constitutional right to set yourself up so that your taxes are minimized and you are paying the least amount of taxes possible. How many people got a call from your CPA or accountant saying “Did you know that you can legally minimize your taxes?” I never got that call. And it was because of that, that I got so infuriated and motivated that I decided to do something about that. I decided that I had to teach myself how to save a bucket of money because I know that there are people out there that are paying a lot less tax than I am. The point is that these strategies have been around for decades but our accountants and CPAs aren’t teaching them to us.
The other US Supreme Court decision says that there are two tax systems - one for the educated and one for the uneducated and you get to pick which one you are in.
The first system works like this:
Income
- Taxes
Spend what’s left
This is the system for the uneducated.
At the very same time there is another tax system operating right along side the first one that is completely legal, that has the endorsement of Congress, and the IRS and it works like this:
Income
- Spend
Pay Taxes on what is left
Which system do you want to be in?
You’re saying, “Wow I get to spend all the money that I want first and then pay taxes on what’s left. That sounds pretty good.” What do we call that spending? Business expenses, business write-offs, and business deductions. The problem is that you aren’t taking but about 10% of the deductions available to you. The most sophisticated and savvy investors and businessmen that come into our program are not taking but 10% of the deductions available to them. And where do you think the other 90% goes? Right down the toilet.
What is the Smartest Way to Pay for My Fun?
In his best selling book, "Rich Dad, Poor Dad", Robert Kiyosaki warns people against the dangers of buying what he calls "doodads" - you know, junk, spur of the moment items. Those things that you didn't know existed until you read about them in an in-flight shopping catalogue and now that you know about them: you just can't live with out one.
The Average American Gives Up 42% to 55% in Taxes
In order to accelerate your movement along the wealth building curve, you absolutely MUST have your own business. I don't care if its real estate investing, a sales company or a service business. But you must own it yourself or with a partner. Why, because the tax laws are tilted in favor of people who are in business for themselves. Let's take a closer look. If you are not in business for yourself, you are earning your money as a W-2 employee. Unfortunately, this is the highest tax form of income that there is.
Keep it Simple and Strategic
There Are Several Keys To Handling Your Business Record Keeping... * The first is keeping complete and accurate records. * The second is separating the business from your personal finances. Let's start with this part first..
