How Businessman Pay Low/Zero Taxes & Still Become Rich? | Financial Education

Summary

This video script discusses the disparity between the wealthy and the tax they pay, highlighting how some businesses, like Amazon, pay little to no tax despite high turnovers. It emphasizes the lack of financial education in schools and the challenges teachers face due to low salaries, which affects their ability to teach financial literacy. The script delves into the tax-saving strategies of the rich, both legal and illegal, and suggests that the government's pressure on businesses can lead to job losses and economic instability. It advocates for financial literacy and the benefits of becoming a businessman, offering a training program called 'Fast Track Millionaire' to educate viewers on digital entrepreneurship and tax-saving techniques.

Takeaways

• 💼 The wealthy often pay less in taxes compared to their income due to legal tax-saving strategies.
• 📈 Large corporations like Amazon can pay zero taxes despite high turnovers through tax avoidance strategies.
• 🤔 The speaker questions the effectiveness of financial education in schools and colleges, given the financial struggles of educators.
• 👨‍🏫 Teachers, despite their academic knowledge, may lack practical financial literacy to teach financial freedom.
• 🏦 The script suggests that the current education system is designed to produce employees, not entrepreneurs.
• 💼 Businessmen can legally reduce their tax burden by claiming expenses and depreciation on assets.
• 💰 The government is portrayed as being lenient with businessmen to avoid driving them to establish businesses in other countries, which could lead to job losses.
• 📊 There is a limited number of taxpayers in India, with a majority paying little to no income tax, which influences government policy.
• 🏠 Investments, such as in real estate, can be made tax-efficiently, leveraging inflation to increase property value without incurring additional tax.
• 📚 The script promotes a training program called 'Fast Track Millionaire' for learning digital entrepreneurship and online money-making strategies.
• 🌐 The speaker encourages viewers to consider online business opportunities and to rethink traditional employment for financial independence.

Q & A

Why do some wealthy individuals and businesses pay less or no taxes?

Some wealthy individuals and businesses utilize legal tax planning strategies and deductions to minimize their tax liabilities. They may also take advantage of tax loopholes or operate in jurisdictions with favorable tax laws.

What does Warren Buffett's statement about paying less tax than his secretary imply?

Warren Buffett's statement highlights the disparity in the tax system where high-income earners may pay a smaller percentage of their income in taxes compared to their lower-paid employees due to various deductions and tax planning strategies.

Why is financial education not commonly taught in schools and colleges?

Financial education is often not taught in schools and colleges because the curriculum may not prioritize it, and teachers themselves may lack the financial literacy to effectively teach these concepts.

How does the speaker suggest that the Indian government's approach to taxation affects businesses?

The speaker suggests that if the government imposes high taxes on businesses, it may discourage them from operating in India. Instead, they might choose to conduct business in other countries with more favorable tax environments.

What is the difference between tax planning and tax evasion according to the script?

Tax planning is the legal process of arranging one's financial affairs to minimize tax liability, while tax evasion is the illegal act of not paying taxes that are owed.

How can businesses legally reduce their taxable income through expenses?

Businesses can reduce their taxable income by claiming legitimate business expenses such as office rent, depreciation on assets like computers and vehicles, and other deductible costs related to their business operations.

What is the advantage of claiming depreciation on business assets?

Claiming depreciation on business assets allows businesses to spread the cost of these assets over their useful life for tax purposes, thereby reducing their taxable income and tax liability in the year the depreciation is claimed.

How can employees be indirectly taxed even if they do not pay high income taxes?

Employees can be indirectly taxed through consumption taxes like GST or VAT, which are included in the price of goods and services they purchase. These taxes are paid regardless of an individual's income tax bracket.

What is the potential benefit of investing in real estate from a tax perspective?

Investing in real estate can be beneficial from a tax perspective because any increase in the property's value due to inflation is not considered taxable income. Additionally, reinvesting profits from the sale of real estate may also be tax-free.

What is the 'Fast Track Millionaire' training program mentioned in the script, and what does it aim to teach?

The 'Fast Track Millionaire' training program is an educational course designed to teach individuals how to become digital entrepreneurs and learn strategies for earning money online, with the goal of achieving financial freedom.