Bureaucrats, Taxes and Income

World News

As we all have come to be aware, taxes are our single
largest expense in our lives. Our hard earned tax dollars go to bureaucrats
that find many creative ways to spend it as well as many creative ways to
continue taxing us. 

As we all have come to be aware, taxes are our single
largest expense in our lives. Our hard earned tax dollars go to bureaucrats
that find many creative ways to spend it as well as many creative ways to
continue taxing us. However, the really rich find different ways to not pay
these taxes by structuring their income sources in various ways.


W-2 wage earners are the people that pay the most in tax because of the type of
income they make and because 99% of them do not do proper tax planning to
mitigate some of the tax they pay. Getting financially educated on how to
structure your income into income sources that reduce the amount of tax you pay
is crucial to your financial success, especially when most pay 50%+ in taxes in
one way or another. We are already taxed on our income, homes, investments, gasoline, travel, clothing, meals,
alcohol, cigarettes, businesses, education, licenses, death, and on and on. You
get the picture.


The bureaucrats say that these taxes are good for us and some of them are
however they just keep finding additional ways to increase our taxes. The
problem with the entire system is that the bureaucrats do not solve our
financial problems or even know how to for that matter. They only throw money
at the problem and never solve it making the problems bigger and bigger until
we have a financial disaster on our hands like Social Security and Medicare. As
the problems get bigger we pay more tax to make up for the problems that were
never solved. These bureaucrats continue to tax us and take money out of our
pockets legally.


Our job is to find creative ways to pay less of a percentage in tax legally.
Unfortunately, you have to have a high financial IQ in order to find these
creative ways of structuring your income and deductions and most of the low
income taxpayers do not have a high financial IQ. Therefore, the low income
taxpayers pay the highest percentage of tax relative to their income.


In order to actually keep most of your money instead of paying taxes, your income needs
to be structured so that it is portfolio income or passive investment incomes
which are at lower tax rates. Earned income, such as those that have W-2 jobs
has the highest tax rates with the least amount of deductions. The structure is
flawed from the start. As taxes rise to cover the major financial problems
currently facing our nation because of the problems the bureaucrats created,
the trick to real wealth and not becoming part of the middle class (i.e. the
new poor) is to change your income sources and finding creative ways to reduce
your tax. This all starts with financial education.


Financial education is lacking significantly in our society as a whole and is
not taught in schools. Most teachers live in the W-2 world and are not
financially educated so how are they going to educate America’s children. That
means it is on the parents shoulders to not only educate themselves financially
but take the reins and educate their children as well. You can make $2,000 per
month or $30,000 per monthFeature Articles, but without financial education neither is going to
get you very far in your accumulation of real wealth without being financially
educated.