Business income is much more powerful than job income. You may disagree. You may say, “Get lost, income is income; doesn’t matter where it comes from!”
But, you’re wrong. Unfortunately, it does matter.
I personally think it shouldn’t matter, but just because I think so doesn’t make it so.
So, how can one type of income be more powerful than another; after all, income is income – why would it matter?
Well, there’s one big reason why it matters …
THE TAX LAWS!
You see, the government and the tax system are why business income is much more powerful than job income. If you happen to disagree with this situation I suggest you take it up with your government; get them to change the tax laws. In the meantime, we’re stuck with it.
I prefer to attack the problem another way. Instead of trying to talk the government into a fair tax system, I just look at the tax laws and say, “Hmmm, how can I work so that I’m in-step with them instead of trying to swim upstream against them?”
And, here’s what I found. If you make JOB income, the tax laws kill you financially. The tax laws are set up to destroy – financially – people who make a living from JOB income. Why, I don’t know. But, that’s the way it is … sorry, I didn’t write the tax laws.
When you earn money from a job, the government takes the first bite – and it’s a big one. The government is the first one to take a cut from your hard earned income. How the system ever evolved to where the government takes your money first is a mystery to me. Why would anyone vote in favor of such a system? And then, the follow-on question, why would anyone allow it to continue? But that’s another discussion.
But, with business income, it’s all different. You touch the money first. You run your business, then pay all your bills, then look at what’s left – profit – and if there is any, then and only then do you square up with the government. When you’re running a business, you only pay tax on profit.
Why does the government do it this way with business income and not JOB income?
Because, government worked out a long time ago that without business, there is no money.
Say what?
That’s right, no private enterprise business – no money; nada; nothing; zip!
And, guess what? The government loves money. But, they have no clue how to make it; they’re just experts at taking it from wealth producing businesses and then spending it. But, they have to respect the businesses, because without them – without wealth producing businesses – the money dries up. So, the tax laws have to be different for businesses. If the tax laws for business were the same as for individual JOB workers, all the businesses would collapse; they would fold; they’d go broke.
And, the government doesn’t want this to happen because the follow on effect would be … the government goes broke. And, this is how you explain the situation in Greece. Kill business, kill the country. Very simple.
So, what are we to do?
I reckon is fairly straight forward – start replacing job income with business income.
When?
Now. Don’t wait. Don’t wait until it becomes a do or die situation. Start now. Today.