the history of taxes & the power of corporations

the history of taxes & the power of corporations

Business OWNERS with Corporations

The Law

The order of the following is what makes the difference:

1. You will get rich much faster if you understand the tax advantages and protections provided by a corporation

Understanding Markets

1. This is the science of supply and demand

2. Tax advantages: Paying off expenses before paying taxes, make vacations out of board meetings, car payments, insurance, repairs, etc (These can all be paid for legally with pre-tax dollars

2. Technical aspects of the market must be identified as well as the fundamental or economic aspects of an investment

3. Protection from lawsuits: Rich

hide wealth under corporations

and trusts to protect assets

from creditors

1. Earn

3. Does this investment make sense based on current market conditions?

Financial IQ

2. Spend

very nice!!

YAS KIYOSAKI!

1. Accounting

Employees Who WORK for Corporations

"EACH DOLLAR IN MY ASSET COLUMN WAS A GREAT EMPLOYEE, WORKING HARD TO MAKE MORE EMPLOYEES & BUY THE BOSS A NEW PORSCHE." -KIYOSAKI

3. Pay Taxes

2. Investing

Kiyosaki's Accomplishments

3. Understanding Markets

1. Developing assets gave him purpose

The order of these makes the difference:

2. By 1978, he was one of the top 5

sales people

4. The Law

3. Invested commissions in assets

1. Earn

4. His company bought him his first Porsche while he invested his commissions in assets

Investing

Accounting

1. This is simply the science of "money

making money"

1. The ability to read numbers (also known as financial literacy)

2. Pay Taxes

2. Includes strategies and formulas that

utilize the creative right-side of the brain

2. Financial literacy is the ability to understand financial statements which allows you to identify the strengths or weaknesses of any business

3. The more money you are responsible for, the more accurate you must be.

3. Spend

The Robin Hood Theory

1. Steal from the rich to give to the poor

Cash Flowed to Government

2. Capitalists see Robin Hood as a crook

1. Government workers began receiving all sorts of benefits

2. Government workers soon began receiving numerous jobs and pensions

3. Large pools of money emerged from the people's taxes

3. Taxes began to effect middle and lower class

Be Smart, OK!?

4. Fiscal management was problematic

1. If you're not smart, you are going to get pushed around!!!!!

2. Use your money wisely and learn how to invest it correctly

Corporations

4. Middle class (well-educated, upper-

income middle class) usually pay for the

poor

3. The impoverished of the world rely on pay checks and weekly salaries while the rich own corporations, royalties, stocks, etc.

Background on Taxes

1. Rich saw corporations as loopholes to taxes

1. There weren't always taxes in the U.S. or England

2. King or president simply had people "chip in" for wars

2. Socialists ended up hurting themselves because of financial illiteracy

3. Taxes were levied in Britain to fight Napoleon (1799-1816) and in America to pay for the Civil War ( 1861-1865)

4. In 1874, England made income tax a permanent levy and in 1913 an income tax became permanent in the U.S.

5. Taxes that were intended to punish the rich

ended up hurting the people who voted

the taxes in: the poor and middle

classes

3. The rich outsmarted the "take-from-the-rich" crowd

5. After about 50 years, both England and the U.S. sold the idea of a regular income tax

6. In reality, taxes ended up punishing the very people that voted them in: the poor and middle classes

4. Capitalists utilized their

financial knowledge (not

taught in schools)

What is a corporation?

Money Works for Rich while Poor work for Money

1. It is not a tangible, physical thing

1. The people that continuously lose money

are those in society that are uninformed &

illiterate in the financial world

2. It is merely a file folder with legal documents that is registered with a state agency

3. Factories and buildings are not required; only a legal body

2. The rich minimize as many tax

burdens as made legally possible

3. Tax codes allow reductions

4. Income-tax rates are less for a corporation than an individual (certain expenses may be paid for with pre-tax dollars)

"IF YOU WORK FOR MONEY, YOU GIVE THE POWER TO YOUR EMPLOYER. IF MONEY WORKS FOR YOU, YOU KEEP THE POWER AND CONTROL IT." -KIYOSAKI