Did you know there are essentially two tax systems in America? One for the poor and uneducated, and one for the rich and educated. It may seem like there is only tax system that everyone has to follow and play by the rules, but I can show you how that's not the case.
You’ve likely read news articles about people who make $1 million a year yet pay no taxes. And it’s not just millionaires and billionaires with highly paid tax attorneys who find legal ways to avoid paying hefty tax bills.
Even some high-income earners making over $200,000 a year use smart legal tax strategies to make sure they pay little to nothing to Uncle Sam.
They're not leaving Uncle Sam a tip
This causes many to feel like the tax code is rigged for the rich… And that’s not too far from the truth. However, after studying the tax code for the last 20 years I’d say a more accurate statement is that the tax code is designed in favor of business owners.
As a business owner the “Spend Money” part is also known as deductions, write-offs or expenses. They all mean the same thing.
And the more you can legally deduct, the less your taxable income is.
For example, if you made $100,000 next year but were able to write off $50,000 then your taxable income is only $50,000.
However, if you made $100,000 as W-2 employee then your taxable income would be close to $100,000 (I say “close to” because there are some deductions available to employees but not nearly as many as for business owners).
And as a business you can deduct a lot of things…
In this guide, you will see the strategies used to help lower your tax bill.
