Why Tax Loop Holes Must Exist
A long long time a go, in a country far far away, in China to be exact, there was a hunter that put nets in 4 sides of the forest. The hunter wished to capture all animals. Then a king passed by. He said, "Remove the nets in the 3 sides of the forest. Let the animals go wherever they want. Allow only those that don't follow Tao wind up in your net."
Not so long ago, a bunch of liberals say, "Let's tax all the income. Block all loop holes. Ensure that no body can get away from our cruel net tax. Punish the productive."
Then a smart man among them quickly point out. "If we close all loop holes, the best and brightest will be forced to destroy the net. Let them have the loopholes. Let the best and brightest among them free. When they know they can be free, they do not bother destroying our net. They'll simply avoid our net. Let those who are so blinded with unfair morality and do not follow Tao end up paying tax."
And that's why you pay tax, while the rich pay lawyers and politicians.
Got it? In fact, the super rich, do not pay only tax, they really receive tax payment. Rich landlord farmers, for example, get a lot of blue collar workers paycheck in the form of farming subsidy that only benefits land owning farmers.
Governments simply use tax money to help businesses that they choose according to family value. So a business with the governors' or presidents' relatives as the director will be more likely to get profitable contracts paid with your tax money, the way most poor and middle class ask for.
Two Issues You should Know to Decrease Your Tax
The very first business class that I took in US was, "How to run an efficient business." No. "How to improve productivity." No. "How do we pay our workers higher, make the world a better place, and still make money." No. My very first business class taught me how to avoid paying income tax.
Oh ya a word of warning. Things are not as easy as it seems. You need to consult lawyers prior to attempting all these stunts.
The thing is. What is income? The formal standard definition of income is the amount of cash you spent plus the increase of one's capacity to spend. For example, say you work in the office. Say you get $50,000 pay check. Say you spend $20,000 and save $30,000. What's your income? The sum of $20,000 and $30,000 = $50,000. What about in the event you spend $1 and save $49,999? What's your income? $1 plus $49,999=$50,000. Right Nelly?
So no matter how you spend your money your incomes remain the same. Governments make that easy for you. They help your self pay your tax before you even see the cash. Isn't that convenient?
Now, the entrepreneurs also have the same definition of income. However, they have 2 important deductions.
1. Money you haven't spent isn't income yet. So we do not pay tax on that. The tax is deferred till we spend it. 2. Money we do spend is expenditure. So it's deductible from our income.
Now, that sounds fair isn't it? It's. I'll show some samples and explain it in more detail in my website http://FasterFinancialFreedom.com/art.390.0.html.
A long long time a go, in a country far far away, in China to be exact, there was a hunter that put nets in 4 sides of the forest. The hunter wished to capture all animals. Then a king passed by. He said, "Remove the nets in the 3 sides of the forest. Let the animals go wherever they want. Allow only those that don't follow Tao wind up in your net."
Not so long ago, a bunch of liberals say, "Let's tax all the income. Block all loop holes. Ensure that no body can get away from our cruel net tax. Punish the productive."
Then a smart man among them quickly point out. "If we close all loop holes, the best and brightest will be forced to destroy the net. Let them have the loopholes. Let the best and brightest among them free. When they know they can be free, they do not bother destroying our net. They'll simply avoid our net. Let those who are so blinded with unfair morality and do not follow Tao end up paying tax."
And that's why you pay tax, while the rich pay lawyers and politicians.
Got it? In fact, the super rich, do not pay only tax, they really receive tax payment. Rich landlord farmers, for example, get a lot of blue collar workers paycheck in the form of farming subsidy that only benefits land owning farmers.
Governments simply use tax money to help businesses that they choose according to family value. So a business with the governors' or presidents' relatives as the director will be more likely to get profitable contracts paid with your tax money, the way most poor and middle class ask for.
Two Issues You should Know to Decrease Your Tax
The very first business class that I took in US was, "How to run an efficient business." No. "How to improve productivity." No. "How do we pay our workers higher, make the world a better place, and still make money." No. My very first business class taught me how to avoid paying income tax.
Oh ya a word of warning. Things are not as easy as it seems. You need to consult lawyers prior to attempting all these stunts.
The thing is. What is income? The formal standard definition of income is the amount of cash you spent plus the increase of one's capacity to spend. For example, say you work in the office. Say you get $50,000 pay check. Say you spend $20,000 and save $30,000. What's your income? The sum of $20,000 and $30,000 = $50,000. What about in the event you spend $1 and save $49,999? What's your income? $1 plus $49,999=$50,000. Right Nelly?
So no matter how you spend your money your incomes remain the same. Governments make that easy for you. They help your self pay your tax before you even see the cash. Isn't that convenient?
Now, the entrepreneurs also have the same definition of income. However, they have 2 important deductions.
1. Money you haven't spent isn't income yet. So we do not pay tax on that. The tax is deferred till we spend it. 2. Money we do spend is expenditure. So it's deductible from our income.
Now, that sounds fair isn't it? It's. I'll show some samples and explain it in more detail in my website http://FasterFinancialFreedom.com/art.390.0.html.
About the Author:
If you want more information on Foreign Income Tax, don't read just rehashed articles online to avoid getting ripped off. Go here: Foreign Income Tax