Of Book of
Mahesh Thakkar “INSIDE STORY OF US TAX PLANNING” ©
Own Business- Secret Key to get Rich
In Chapter 1,
we studied that rich people try to control interest and tax which are major
outflows of our funds.
Now let us
study how they tackle taxes. Before we go deeper into this, let me ask you a
question.
Can you
guess, what is primary source of income for majority of the rich people?
It is not
difficult to find. Look around in your locality and observe what rich people do
for earning.
Obviously,
you will find that in case of more than 90% of Rich People, main financial
source of income is: “Business”. It may include selling services, products,
properties, facilities, concepts or anything. It may involve just trading, or
manufacturing or licensing or renting. But most of the rich are engaged in
business.
The symbolic character of economic life of the rich people is this
activity called: “Business”.
ONE IMPORTANT FACTOR MAKING BUSINESSMAN RICHER DAY BY DAY IS FAVOR
TO THEM BY TAX LAWS
Now let us go further into this. Why business
makes one richer? Is it because business produces more income than jobs?
This is not
necessarily true. And even if this may be true, this is not the only factor
making them richer. Average income of business may be similar or even less than
salary and benefits of top executive over period of 10 years.
But still
business owners make more money than what others do.
One truth,
which is universally true for all the time is that business people always pay
lesser taxes than salaried people, anywhere in the world.
Even if your
income from Salary is same as that of business income of your friend, you end
up paying more tax, than what your businessman friend pays for the same
earning.
The
underlying financial reason is that business owners belong to a totally
different tax group than that of non-business owners. They look to be favored
class of taxing authorities.
How
Businessmen are favored by Tax Laws?
