How are different taxes stealing your money, life and future?
“Taxes are your largest single expense.” – Robert Kiyosaki
On average, individuals spend between 20 to 30 percent of their lives working just to cover their tax obligations. This translates to over two hours each workday devoted solely to generating tax revenue for the government. Additionally, three to four months of each year are dedicated exclusively to earning enough to pay taxes. Cumulatively, this amounts to around 13 years of one’s working life and 20 years over a lifetime—effectively, a 20-year commitment akin to serving a lengthy sentence.
Every day, taxes chip away at the essence of our lives. Think about it—whether it’s income tax, sales tax, value-added tax, or employment tax, each one subtly drains our resources. But it’s not just about the money; it’s far deeper than that. These taxes are actually siphoning off our time—our irreplaceable life hours.
From my own experience, I’ve seen how relentlessly working to cover tax expenses means less time for family, hobbies, and rest. It’s a constant trade-off: more hours at work equate to fewer moments spent on personal fulfillment. For those who have accumulated wealth, the scenario shifts—they have the luxury of using money to buy time. They can afford leisure and experiences without the burden of trading hours for dollars.
This disparity highlights a stark reality: while we toil away, a significant portion of our hard-earned income—and therefore our time—is funneled into the vast coffers of the government. It’s not just a financial transaction; it’s a profound life exchange. And as I reflect on the hours dedicated to meeting tax obligations, I can’t help but feel a sense of loss for what could have been those hours spent on truly living.
Almost a third to one-half of the world’s wealth is handed over to Governments.
It’s a stark reality that people globally are parting with a staggering 30 to 50 percent of their hard-earned income to taxes. This isn’t limited to just income taxes; it includes GST, value-added taxes (VAT), payroll taxes, estate taxes, and property taxes. Every paycheck I receive is a reminder of this hefty contribution, and every purchase I make further chips away at what’s left. Whether it’s directly from our salaries or embedded in the cost of goods and services, the financial impact is deeply felt, diminishing our ability to save, invest, and sometimes even meet daily expenses. This burden, shared by so many, underscores the significant slice of our financial pie that goes towards fulfilling these pervasive tax obligations.
You may think that you have no choice about how much tax you pay. Everyone has to pay taxes, right? Wrong.
Include Tax Planning in Your Wealth Strategy
Taxes don’t just take your money—they steal your time—because money is time
Integrate tax planning into your wealth management strategy. Always bear in mind that it’s not solely about what you earn, but also about what you retain. By factoring taxes into your investment approach, you not only preserve more of your funds but also enhance the quality of your investment choices.
Is tax law designed to benefit the wealthy? Undoubtedly! The secret to leveraging tax laws is to align yourself with the affluent. Engage in the activities encouraged by the government, and you’ll see not only a permanent reduction in your taxes ranging from 10 to 40 percent or more, but you’ll also start accumulating greater wealth and cash flow than you ever thought possible.
Stop allowing government agencies to take your hard-earned money. It’s time to break free from the constraints that bind you. As you discover the realities of taxation, this knowledge will liberate you. You’ll regain control over your time and finances, enabling you to live your dream of financial independence, comfort, and security.
Taxes are Easy, and Understandable
Millions of people legally pay minimal or no taxes at all. What’s their secret? Do they know about loopholes that are in the law that allow them to get away with not paying tax? No. it’s about a deep understanding of how tax law functions. These savvy individuals recognize that tax laws aren’t just mechanisms for generating revenue. Instead, they are strategic tools used by the government to influence the economy and to support social, agricultural, and energy policies. By understanding this, they align their financial activities with these objectives and benefit from significant tax advantages.
The government wants the economy to grow. It wants you to invest in local energy production. It wants you to invest in local agriculture. And it wants you to invest in economic activities that provide housing and jobs for the people. All of this is contained within the tax law. When you understand the tax law of the country, you will understand what the government wants you to do with your money. And you will understand the fundamental principles for making large amounts of money.
Understanding Taxes Doesn’t Mean Doing It Yourself
1. You still need a good tax advisor who understands the details of the tax law.
2. A good tax advisor can help you create and implement sound tax planning
Beware of Tax Advisors Who Really Work for the Government
1. Many tax advisors are afraid of the tax law so they won’t learn how to take advantage of the law for you.
2. Some tax advisors are more interested in protecting themselves than reducing your taxes.
Not taking advantage of the aspects of the law that are there to help you means you are stealing from yourself, your family & your future
Unless you reside under an authoritarian regime, the income you generate and the wealth you accumulate are rightfully yours. Certainly, you are obligated to contribute a portion of it to the government for essential services such as road construction, military upkeep, and educational funding. However, at its core, this money belongs to you.
The tax law is written primarily to reduce your Taxes
You may not believe this. So go ahead and ask your accountant how much of the tax law is devoted to raising taxes.
Your accountant will tell you the truth—very little.
Few feel it’s our patriotic duty to pay the most taxes, is both ridiculous and completely wrong. In fact, it’s actually our patriotic duty to reduce our taxes by all legal means.
Companies pay income tax after deducting all expenses like rents, electricity, salaries etc..Salaried Persons pay tax first and then pay rents, schools fees, bills etc
The article is going long… in part 02, will mention the proven and legal ways to save the taxes for Salary Classes.
Next Article is available now at –How to Save Big on Income Tax Legally in India!