The Government Actually Wants You to Pay Less Taxes
Yes, you read that title right. However, it mostly holds true if your are a business owner or professional investor. If you are not, well what are you waiting for the U.S. is tagged as the land of opportunity, right?
Tax Cuts and Job Acts
This bill was passed in December 2017 and was Trump's first big piece of legislation to pass through.
You know what it helps do? It helps us to be like Trump and not pay taxes!
The corporate tax rate was cut from 35% (which was ridiculous to begin with) to 21% and in certain instances LLCs can qualify for a 20% deduction of income that doesn't fall under the list of exclusions (as an holder of an LLC, yes please to that last part)
The depreciation schedule has also been accelerated allowing businesses to write off a larger portion of equipment purchases, etc.
All of these things equal less taxes for your business and that is exactly what the government wants!
Creation of Jobs and Housing
The bottom line is the majority of jobs and housing is provided by the private sector, not the government. More importantly, small business are a very large chunk of that job and housing supply.
So it makes sense to incentivize the growth of business. This not only mean your typical mom and pop small business retailer or service provider, but also the folks like me - real estate investors.
By owning rental properties I provide a pleasant fairly priced place for someone to live (well, atleast I do that there are some crappy investors out there). If the government wants to make it easier for me to have success at this by reducing my tax burden than why would I complain about that? I'll take all the help I can get.
The interesting part is I know alot of people that hate "businesses" but really any one of us can be a business. For real estate investing it doesn't take a whole lot to get started.
I was couch surfing from age 18 through college and come from a family where no one but my grand father has ever owned a home. After some work and getting over the mental block I bought my first rental property, then another and another and began a professional real estate investor.
So for the crowd that hates on tax cuts for businesses, you may be missing the bigger picture. For every 1 large conglomerate that may benefit from it there are thousands of small business and self-proprietors that benefit too!
It is these small business and self-proprietors that are then creating new jobs as they can grow rather than being saddled with a heavy tax burden.
For Info on How to Successfully Invest in Real Estate Like a ScaredyCat visit:scaredycatguide.com
Disclaimer: All info in this post is my opinion and for informational purposes only
Disclaimer: All info in this post is my opinion and for informational purposes only
I Love this post, Businesses provide so much for our country. I hope tax rates continue to drop. Not only can an individual be a business, But also people work or businesses and often businesses seem to create jobs when they have that extra funding.
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Heck yeah! As a fellow entrepreneur I know you appreciate this :-)
Excellent post. Most people don’t understand by letting businesses keep more of their money, they in turn can hire more workers, invest in innovation (which helps everyones quality of life) and reduce the need for government welfare. This in turn creates prosperity.
What’s ironic is, every single major tax cut, going all the way back to JFK, has resulted in an INCREASE of federal tax revenue. Why? Because while tax rates are lower, more people have jobs and are actually paying taxes. This is something the far left doesn’t seem to understand....but I digress. Anyway...I’ll Get off my soap box. ;-)
Hehe, Preach On! And yes, less people being supported by social services and more working is what is needed. We have literally promoted being lazy and supported by the gov't the past decade.
Haha...yeah, I get a little passionate sometimes. Don't get me wrong. There's a place for welfare programs...but not endless and certainly not the system that's currently in place. I'm not a big fan of Trump the man, but his policies have been excellent....aside from trade. He's gambling big time there in my opinion.
Sounds good to me.... can I claim all my millions in Crypto losses ?
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I write the off against my gains ;-)
Now if we can cut some government, like whole departments.
Yeah, for real. So financial inefficient.
I noticed this years ago when I began my freelance wedding videography business. After doing my taxes, I was like, "Oh, the government WANTS me to start a business."
Exactly! Better to be a business than an employee.
Wait... who are these people that hate businesses? You can't be serious, surely? Show me these people and I'll show you a group that really hasn't thought things through...
In other news, we've only been in the US 3 years, the first year was amazing, the second year was terrible (my wife had a 2 instead of a 0 and that killed us, not even sure what that refers to, dependents maybe) and this next year should be good for us with the new changes.
I love me Australia and nearly stayed there for good.
I think this maybe an experiment to try to prove what has helped other economies grow by reducing taxes which would potentially lead to businesses add employees with the savings. The only problem I see is how it is funded which is yet to see. We may get the benefits now but may have to pay at a later date given the huge debt the US has out there.
Oh yeah, we are F'd with the debt piece and this only makes it worse. However, I personally don't have a debt problem and the tax structure helps me ;-)
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