Tagged: taxes

Lies common people believe

Warning:  This entry contains some provocative thoughts, some questions to ponder, and may even change the way you see how the world works.  Some people are so afraid of moving out of their comfort zone, they would rather live a lie.  If you are one of them, you may want to stop reading this.  Come back for my future entries or read my past blogs instead.  But if you are one of those who want to grow, to improve, or just open to new perspective, then I sincerely hope the information below will be able to help.

This may require some open-mindedness by the way.  So let me start with a quote:  “A deceived person doesn’t know he is deceived. To him, the deception is what appears normal – it’s the truth that seems odd.”  So if you find what I am about to share with you a bit hard to swallow, just remember that is how a deceived person perceives.  Truth can be stranger than fiction.

Number 1:  Who pays the most tax?

Do the rich or the poor pay more in taxes?  I think the answer is obvious.  I can hear people shouting “the rich!”

Wrong!  The rich are NOT the ones who pay the most taxes.  The middle class do.  It’s people like you and me who ended up paying more taxes.  It’s people who work the 9-5 clock that really pays more.  This misinformation is so deep-rooted even parents and teachers will continue to hand down this “lie” to the next generation without them knowing it.

You need proof?

Why don’t you research how much Warren Buffet’s income tax was?  It’s in the news.  Go ahead, google it up.

It’s 17.4%.  Yes, billionaire Buffett, one of the richest men alive, is required to pay only 17% income tax.  No illegal or unlawful activities here.  That’s all he really needs to pay.

How can this be?

In the Philippines, income taxes can easily reach 30%.  In Australia, it can reach up to 40%.  In Amsterdam, it even reaches 50%.  So how can a Billionaire only be paying 17%?  What’s funny is that Buffett’s secretary is paying a 35.8% tax rate, about double the rate of her boss’s.  How can this be?

Here’s how.  There’s more than 1 reason, but I’ll keep this as simplified as possible, so I’ll just share 1 explanation.

I got this from Kiyosaki’s Rich Dad Poor Dad book.  Corporation owners (the rich) can invest and spend first, then get taxed with what is left.  On the other hand, employees (middle class, including some CEOs) are taxed first, before they can even start to spend or invest.

It goes like this:

Rich / Owners of Corporations –  1.  Earn  2. Spend  3.  Taxed

Poor & Middle Class / Employees – 1.  Earn  2.  Taxed  3.  Spend

This is a very simplified explanation.  I do not want to discuss complex matters here and make you feel sleepy.  If you want to learn more about this and get the complete picture, I recommend you read Robert Kiyosaki’s Rich Dad Poor Dad.

This does not only apply to Warren Buffett, but to all the billionaires out there.  This does not apply only in the US, it’s the same rules in any country.

So before I move on to the next point, just remember this.  The next time someone tell you the rich pays the most taxes, you know better 😉

Number 2:  Money = Debt

Do you know how much the US National Debt is?  It’s hard to keep track because it’s increasing every second.  But as of this writing, it’s $15.69 Trillion.  (To track the debt in real time, go to http://www.goldmoneyfuture.com)

Do you know how much is the total US Dollars in circulation?  Again, it’s changing every second, but it’s about $12 Trillion.

Did you notice something odd by now?  The debt is actually bigger than all the currency bills printed.  How can you pay off $15 Trillion if you only have $12 Trillion?  So even if you get each and every single US dollar bills and coins, it’s still not enough to pay the debt!  The debt will always be higher than all the money in circulation.  Always!

And it’s not just in the US.  All nations are in debt (except for 4 tiny, almost-inconsequential nations).  And it’s the same thing with the remaining 190+ countries, debts can never be paid.  They can always print more money, but the reality is the more money they print the more debts there will be.  Because money, if you understand how the system works, is debt.  Sorry I won’t that explain here, but I’ll give you a good link later where you can get more information.

I have been asked “Can’t nations just cancel each other’s debt?”  The thing is they don’t owe each other.  So the question now is, who do they owe all these debts to?

Time to talk about the central banks.

Number 3:  Are Central Banks really government-owned?

This is a highly sensitive topic so I’ll try to avoid controversy as much as I can.  Think of the central bank in your own country.  If you are in the US, think of the Federal Reserve.  For my fellow countrymen, think of Bangko Sentral ng Pilipinas.  Ask yourself who owns these institutions.  If you think it’s 100% government-owned, it’s time to rewire your brain and clean it up from the massive misinformation that has been fed to the general public.

I guess that’s all I can say.  The rest of this controversial topic you have to find out for yourself.

The bottomline here is this: not only do the middle class ended up paying more taxes, not only do the middle class ended up working more to pay their nation’s debt that can never be fully paid, but it’s the middle class’s butts that are kicked the hardest and kicked the most often.  What really amazes me is that majority of the middle class are not even aware how hard their butts are being kicked.  Or perhaps it has been happening too often most of them are just numb.

I know May 1st had just passed, and I’m sorry for sharing such topic to the middle class right after Labor’s Day.  But I believe it is better to live an uncomfortable reality than live a comfortable lie.  And don’t feel bad about this.  Don’t be a pessimist.  Remember every problem has its solution.  Every problem lies a hidden opportunity.  And the bigger the problem, the bigger the opportunity.

Me and my friends created a website where you can further understand two things:  this problem that affects us all, and the opportunity it brings.  This is absolutely free.  My friend James Cox even created an online lecture called “The History and Probable Future of Money”.  You can watch it at http://www.goldmoneyfuture.com

The middle class of the world is shrinking fast.  You have two choices now.  Do nothing and get slaughtered financially.  Or educate yourself, get protected from the upcoming financial disaster, and take advantage of the opportunity hidden within the disaster.

Choose wisely,

Dan Mark See

[By the way if you think you are rich and believe that this will not affect you, remember the top 2% of the population owned 50% of the world’s wealth.  Either I’m really lucky to have one of the top 2% read my blog, or some middle class fellow has been deceived again to think they are rich.  Peace :D]

[One last point, rallying and protesting in the streets like you see in the news won’t solve any problems, it won’t get you closer to the upcoming opportunity either.  To understand how to see the gold (or silver) in all these dirt, visit http://www.goldmoneyfuture.com]