Chapter Four:The History of Taxes and Power of Corporations

“A corporation is the biggest kept secret of the rich.”

The History of Taxes

Originally, we had no taxes. The kings and presidents would ask the rich to “chip in” in cases of wars.The poor and middle-class saw this as a fair feat ,in accordance with the theory of Robin Hood that involved taking from the rich to give to the poor. The rich were being “punished”.However, once the governments tasted money, their appetites grew.Soon, both the poor and middle class were being taxed as well.

The Emergence of Corporations

The rich always find their way eventually thus corporations were invented to minimize risk on assets and tackle tax levies.A corporation is not even a thing.It is merely a legal document that creates a legal body without a soul. Income tax on corporations is less than individual tax rates. A corporation is the only place where you pay tax, after you spend.

Average Minds vs. The Rich Mind

The harder an employee works, the more the tax they pay the government. This usually is disguised as salary increment or a promotion. The rich do not voluntarily pay more taxes.They search for ways to minimize the tax burden. They have the money, power and the intent to change things.With money comes great power and knowledge is needed to keep and multiply it.If you work for money, you give the power to your employer, if money works for you,you keep the power and control it.Ignorant people are often bullied by the taxman.It is expensive to not understand the law.

The Four Components of Financial IQ

Accounting

Determines accuracy in reading numbers.The more money you make,the more the accuracy needed.That is if you want to build an empire.

Investing

This is the science of money making more money.A lot of creativity is involved in making this happen.

Market

An entrepreneur should understand market conditions and trends.

The Law

Every business owner should take the time to understand taxes .

My take:

Every time I think I’m done with this book,I get a slap in the face.Immediately after making this post I will Google all I can on taxes.I am going to learn everything there is to know about accounting. I am baffled by this knowledge!

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