Throughout history taxes have been necessary to pay for public services and needs.
As the civilization grows, so does government, and this requires more revenue to pay for the expenses of the Treasury. Legislation is passed and new financial commitments are created on a continuous basis, creating a limitless demand on the resources of the government and its people. To pay for these increasing expenses, the advisors of government look for ways to increase revenue-through taxation.
However, since there are no individuals who will take responsibility for how tax revenue is spent, significant malinvestment will inevitably occur when the government spends on behalf of the public. This means that fair value will not always be realized in exchange for the money spent, i.e. defense spending, social welfare programs, etc.
One can make his own observations regarding government waste.
You, as a Private Practice Owner will create more value for each dollar invested than any government can. Therefore, keeping your tax obligations as low as the law allows is in your best interest, as well as that of your family, company, and community.
The areas in which you have the most control over your tax obligations are income taxes, gift taxes and estate taxes in countries that impose them. These are taxes that are somewhat “voluntary” in nature since you can arrange your affairs to minimize these types of taxes through proper planning and the implementation of legal and effective strategies.
Only so much can be done to minimize your tax liabilities, especially in a system that taxes you more as you earn more income and accumulate more assets. But don’t refuse to make income because of government regulations to tax you. Instead, earn way more than you need so that the negative effect of taxes will not adversely affect your standard of living.
A Private Practice Millionaire would become more familiar and conversant with the tax laws of the land so that you may keep more of what you earn. I want this for you! To learn more about taxes and the other eight elements that make up your financial life contact us today.
