Unless you like giving the government more of your money, almost everyone wants to pay less in taxes.
Now, there are legal means to avoid paying in taxes and illegal means.
I’m not interested in going to jail, so I’m all about discovering the legal ways to reduce my tax obligation.
Smart people pay less taxes
Reducing the amount of taxes you have to pay by legal means is not unpatriotic.
Don’t let the Socialist Democrats fool you into thinking there is something you are not paying your “fair share” because you take advantage of the legal ways to reduce your taxes.
Figuring out how to legally pay less in taxes is the smart thing to do. This means you have more money throughout the year to do with as you please.
You can use the extra money to better enjoy life. You can take your family on a really nice vacation, throw a party to celebrate an anniversary or a birthday, buy that expensive handbag you always wanted, or purchase a bespoke suit.
However, there are more progressive ways to use the money you saved from paying less in taxes.
You can reduce future interest expense by paying off or paying down debt. You prepare for college by investing in a 529 college savings plan. You can invest the money in an IRA or Roth IRA.
By investing the money you saved from paying less taxes, your money has a chance to grow so that the money you saved can make more money.
The bottom line is, there are a lot of good things you can do with the extra money saved by paying less in taxes.
A “job” will make you pay more in taxes
For at least two generations in America, people have been told that the way to succeed in life is to get good grades in school, get accepted into a good college and when you graduate you can get a high-paying job.
This worked for a little while and there are many older people who benefited from employing this strategy. They make a high salary, but thanks to a progressive tax system, they also pay more in taxes.
A progressive tax takes a larger percentage of income from high-income groups than lower income groups and is based on the concept of ability to pay.
Ability to pay is based on a concept of fairness that states that people with different amounts of wealth or different amounts of income should pay at different rates.
Now, a new wave of Socialist Democrats don’t believe the rich pay enough taxes and want to see tax rates go up even higher.
But, I digress.
Now the game has changed. The “go to school and get a high-paying job” strategy doesn’t work that much anymore.
Going to school doesn’t guarantee you a high-paying job. In fact, it may only mean that you end up deeper in debt.
Student loan debt has gotten so out of hand and it’s now limiting your chances to be able to afford a house.
Aren’t you sick and tired of the herd mentality crushing our spirits by telling us the best we can do is get a high-paying job!
I’m not suggesting that you shouldn’t go to college or pursue higher education.
Instead of going to school to learn how to work more efficiently selling rich people’s products, why not increase your financial education and have people—and money—work for you?
A job stands for “just over broke.”
That is the problem for most people because they go to school to get a job.
How to legally pay less in taxes
If you have a job a W-2er, you’ll pay more taxes than anybody else.
But if you become an employer – a job creator – you get better tax breaks because you create jobs.
This is exactly what the government wants…taxpayers.
Therefore, the IRS and Uncle Sam or willing to create a lot of tax incentives to encourage people that have a progressive mentality to become their own boss.
So, while I’m not against employees, it seems the government is.
Instead of getting a job after finishing school, how about becoming an employer?
And if you have the means, moving overseas to Puerto Rico can potentially eliminate your tax bill.