Taxes touch every part of our lives. Any time we spend money or make money, it can impact our taxes – for good or for bad. Fortunately, we have a lot of influence over whether the impact is good or bad. It's all a matter of understanding the tax law.
This is one of the reasons I wrote my book Tax-Free Wealth. Here's an excerpt from the book that explains this concept.
From Tax-Free Wealth:
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.
