Tax the Wealthy

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I received an automated survey phone call to my cellphone a few days ago from a local Congressman seeking opinions on the issues they are attempting to address in Washington DC. The two main topics asked about were health care and taxation. I don’t think the government knows the first thing about real health care and I cover that issue on my wellness blog. Here I want to talk about the taxation thing. Specifically, the question was if they should increase taxes on the wealthy.

Poor and middle class people are usually in favor of increasing taxes on the wealthy because it suggests that their taxes won’t be increased. It is a given that the Federal government will have to get more revenue from somewhere if they are going to reduce the huge deficit they are creating.

You realize that the deficit isn’t the entire debt, it is just the amount of debt that they are adding this year.

I want to look at this from the point of view of a wealthy business owner, because I intend to be one soon. I think the government’s definition of wealthy is income greater than $200,000 or so. The bottom line is that wealthy people aren’t overly concerned with their taxes increasing. Taxing the wealthy is really just PR to get buy-in from the masses.

If you are a wealthy business owner most of your expenses are covered by your business. Your car and most of it’s expenses are covered by the business. Most of your travel expenses are covered because you find some way to make it business related. If you eat out, you invite a customer or partner and make it a business meeting. The only personal expenses that you should have are your mortgage, groceries, some clothing, and not much more. Businesses pay for expenses before they pay for taxes, so expenses are effectively tax deductible.

Since you have very few personal expenses, there isn’t much use is paying yourself a large income. If your personal taxes go up, you adjust your income so that you can maintain your level of available cash.

The business deals with it’s taxes differently too. Taxes are dealt with like any other expense. They are forecasted. If taxes are going to go up, then the business figures out how to minimize the expense and then make sure that there is enough income to cover it.

That’s a whole lot better than being on a W2, isn’t it? If you have a job and your taxes increase, you can’t easily go make more money to cover it.

How would you like to own a business of your own so that you can take advantage of the tax laws and legally make some of your expenses tax deductible?  You could start a business today in network marketing if you wanted to. Take a look at my website to see some of the benefits of starting a business in network marketing with Nikken. You can go straight to my Nikken site to see the specifics of Nikken and start your business. Also feel free to leave a comment or contact me.

Wayne Woodworth
Soon to be wealthy network marketer

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