We’ve heard it again and again in the media like a broken record… the rich don’t pay taxes! But maybe to engage in a more meaningful discussion, they should rephrase the question to why the rich don’t pay taxes legally. And this is exactly what Tom Wheelwright’s new book, The Win-Win Wealth Strategy: 7 Investments the Government Will Pay You to Make, is all about.
Jason invited Tom Wheelwright, entrepreneur, best selling author, Rich Dad Advisor® & International Authority on Tax to The Creating Wealth Show to discuss how we as taxpayers can do what the government wants done and get a tax break for doing it!
Simply put, nobody likes paying taxes. Even people who say the rich need to pay more taxes, don’t want to pay more tax themselves! But why not take advantage of the opportunity in front of you? In his new book, Tom teaches you how you can and should use government tax incentives for yourself. But why does the government offer such incentives in the first place? The government actually makes more money providing an incentive, than doing the work themselves!
History of Government Tax Incentives
If the government wants something, the easiest way to achieve that is to give a tax incentive to allow for someone else to do it. This is an important tax loophole that the rich use to pay zero taxes and avoid taxes legally. You can use debt and taxes to increase your wealth if you know how to play the game.
This actually started back with John F. Kennedy, so it’s not a Republican phenomenon as many wish to believe. JFK wasn’t the first president to push government tax incentives, but he was the first one to really make it much more commonplace. He wanted to try to incentivize manufacturing, and so he gave an investment tax credit for new manufacturing equipment as a test to see what impact it might have. His government found that a small incentive, such as a 10% investment tax credit, really went a long way and produced an enormous result.
In Tom’s book, he goes into depth about how using debt is incentivized by the government. Why does the government do this? Tom runs the numbers and shows how the government profits more by outsourcing this kind of work to private individuals. InThe Win-Win Wealth Strategy, he outlines 7 specific investments that the government will greatly incentivize you to make.
Tax Law is a Partnership
When it comes to taxes, the first thing we have to do is change our mindset. We must change our mindset from “taxes are a horrible burden and the government’s out to get me,” to “the tax law is a partnership between us and the government, it’s a game and we get to choose how we play that game.” If we play the game the right way and the way the government wants us to play it without cheating meaning we do it ethically, legally and morally, then the government will reward us. Tom is referring to food production, energy production, jobs, housing, etc. There are many things the government wants done and most likely, there’s a tax incentive to do it.
