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Tax Myth Debunked
The Rich Do Not Pay Taxes

I will speak about profits often because taxes do not have to be as bad as we think.  Yes, it is hard to let that money go but, if we consider the amount of money they take from payroll, perhaps you would consider having more than a $0 profit.  Did you know the business income or self-employment taxes are more controllable than payroll taxes?  Did you know we get hit hard throughout the year with payroll taxes? Employees pay more taxes on payroll than the taxes we pay on profit, yet people continuously complain about business income tax or self-employment tax.  Most people will do anything to find deductions and credits to avoid taxes.  Instead, I embrace the mindset to be honest, and maximize my deductions and expenses throughout the year.  I have learned to live within the portion that I receive (living within my means).    

There is a lie that rich people do not pay taxes because they can hire people to help them with tax loopholes.  Yes, this is correct, but only in a small percentage, they must pay taxes too.  If the so-called "rich" did not have to pay taxes, they would not lie so much about what they earn or claim false deductions and credits.  You would not have people trying to hide money or under the table sales.  You also would not have people that get caught up in tax evasion, so that is not true. 

People do not want to learn how to maximize their spending throughout the year.  Sadly, people want to spend without thinking but what they spend on is personal purchases.  Once people stop following the lousy advice that only poor or honest people pay taxes, you will also see how much you can save and maximize the available tax deductions, credits, and benefits. 

I also don't have to look over my shoulder for the tax audit letter either. 

I would instead plan out spending and understand how the system also works so I can benefit like those that hire tax lawyers and tax accountants.  Those people have been able to help people plan out the year, and that's the difference.  I say being proactive is much more profitable than reactive.  Reactive taxes will also result in paying more in hiring people to fix the problem, which is typically helping you catch up years' worth of bookkeeping and accounting processes because you hit what you thought was an easy button. 


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