It pains most people to talk about taxes, but it doesn’t have be! We’re here to educate you on taxes, and how the tax law can work in your favor. So how is money made and taxed? Here are four ways you can earn your money that will influence your tax rate:
- As an employee, you will pay an average of 40% in taxes.
- As a self-employed small business owner or specialist, you will be taxed an average of 60%. This category commonly includes doctors, lawyers, or accountants.
- As a big business owner, you will be taxed on average 20%
- As an investor, you can reduce you tax rates to 0%.
So why do people aim for the wrong tax rate?
Unfortunately, most people are unaware of the tax savings available to big business owners and investors, or they are simply afraid of tax audits. Either way, many are unwilling to take the steps needed to set up a big business or become an investor, where the real tax savings are available.
It’s not uncommon for people to have not heard about the tax savings available to big business and investors, or be unsure how to achieve them legally. Most entrepreneurship programs around the world set the goal too low. They consider becoming a specialist or small business owner as the ultimate goal, which increases your tax rate.
“Are you kidding me? The goal is to increase my tax rate?” Wheelwright said. “That’s crazy!”
Wheelwright points out that while you may have to start as a small business owner or specialist, you don’t want to stay in that quadrant. It makes much more sense to graduate to being a big business owner or investor.
“Ultimately, you want to get to a zero tax rate and ultimate wealth,” Wheelwright said.
Get a Financial Education
Tom covers the specifics of how to achieve tax savings every day of your life using a few simple real life ideas. While this video covers a high-level view of how tax structures are set up, learn the details of how to implement this in the upcoming Tax and Asset Protection Class. Sign up for the in-person 3-day seminar on Nov. 3, 4, & 5, 2017 in Boston. Sign up here.
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