In my book, Tax-Free Wealth, I share 2 very important rules that are the foundation for reducing your taxes (legally):
Rule #1: It’s your money, not the government’s.
Rule #2: The tax law is written primarily to reduce your taxes.
Bottom line: The government wants you to reduce your taxes.
The tax laws, in most developed countries, are written to reduce your taxes, not to increase them. In the U.S., for example, there are over 5,800 pages of tax law. Only about 30 pages are devoted to raising taxes. This leaves over 5,700 pages that are devoted entirely to reducing your taxes.
This means 99.5% of the tax code exists solely for the purpose of saving you money.
I even go as far to say it’s actually your patriotic duty to reduce your taxes by all legal means. Many people think I’m kidding when I share this, but I’m not.
Think about it this way. If 99.5% of the tax law is written to help you reduce your taxes, then the government must really want you to do just that. Otherwise, why would they enact so much legislation aimed at helping you do so?
All of the so-called complexity of the tax law is really just aimed at reducing your taxes, not increasing them.
When I share this concept with others, they usually find it interesting, which is great – but I really want them (and you) to think about this concept and how to apply it to their personal situation.
Take the Fear Out of Taxes
Once you truly believe that the government wants you to reduce your taxes, you’ll realize that you have the right to reduce your taxes every minute of every day. All you have to do is learn the rules.
Many people fear taxes – they view them as a necessary evil that prevents them from getting ahead and keeps them from building the wealth of their dreams.
Surprisingly, some tax professionals feel the same way.
It is key to have a tax advisor on your team who understands what it is the government wants you to do in order to reduce your taxes and, more importantly, is able to put those rules into terms you understand.
To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. If you are not the original addressee of this communication, you should seek advice based on your particular circumstances from an independent advisor.