Читать книгу Tax-Free Wealth - Tom Wheelwright - Страница 10

Preface

It’s not easy to write a book about taxes that appeals to the average Joe. Most people are scared to death of taxes. They believe that the tax law is out to get them. For years and years, the media and so-called financial advisors have told us that the tax law is far too complex for most people to understand. What these groups are not telling you is that the tax law is actually pretty simple. Yes, there are many details, and you need a good tax advisor to help you sort them out. Still, the fundamental concepts of the tax law are easily understood by anyone with a fifth-grade education.

Of course, the tax laws were not initially intended to even include the average working man and woman. They were meant to reach only the excess earnings of the most wealthy individuals and corporations. Over the past several decades, however, they have evolved to become tools of social and economic policy making.

When the tax laws were first imposed on employees, an average employee earning the average wage was exempt from tax. Now, employees pay the highest taxes, and employers and investors pay the lowest. Why?

Economic policy makers in government discovered that people respond quickly and directly to tax incentives. So, if you want to encourage big families, you give a tax credit for each child. If you want to encourage investment in domestic oil production, you give a big tax deduction for every dollar invested in oil and gas. If you want to encourage investors to build apartments for low-income workers, you simply give them a credit for doing so. And it goes on and on.

This book is not a criticism of the world’s tax laws, or even a recommendation that they change. Taxes are part of our world and will always be part of our lives. So, instead of complaining about them and hoping for parliaments and legislatures to make them fairer, let’s simply understand them and put them to good use in our lives.

Taxes will either make you rich or make you poor. The tax laws of all countries are written to encourage certain activities that benefit the economy and promote social policy. It’s our job to understand and take advantage of the tax laws as they are written.

This book is not about loopholes. Loopholes are unintended consequences of laws that were enacted. This book is about the consequences that lawmakers intended. Taking advantage of the intended benefits is doing what our governments ask us to do. Invest where they say to invest and you get a tax benefit. Put your time and talents into activities that produce jobs, housing, and grow the economy, and you get tax benefits. In many ways, utilizing the tax code to the fullest to save as much money in taxes as possible is one of the most patriotic things you can do.

Again, the concepts of the tax law are not difficult to understand. While this book will not make you an expert in your country’s tax laws, it will teach you the fundamental principles of those laws so that you can take advantage of them in the way your government wants. And in doing so, chances are that you will become more profitable in your business and investing. After all, the tax law is really a map—a treasure map. As you follow this treasure map, your taxes go down and your profits and investment returns go up. Enjoy the treasure hunt, and you will find that your financial freedom is closer than you think.