
Rich Dad Radio Show: In-Your-Face Advice on Investing, Personal Finance, & Starting a Business
How the Rich Pay ZERO Taxes - Legally
May 7, 2025
Join Tom Wheelwright, a seasoned CPA and author of Tax-Free Wealth, as he uncovers the financial truths behind the tax code. He reveals how the wealthy leverage tax strategies to pay little to no taxes legally. Discover the disparities between employees and big business owners, the importance of tax planning, and innovative investment strategies such as real estate and hard assets. Tom also discusses how understanding tariffs can impact your investments and why shifting to gold and silver might be the smart move to protect your wealth.
29:42
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Quick takeaways
- Understanding the tax code as a system of incentives allows individuals to significantly reduce tax liabilities through strategic investments.
- Employees and small business owners often face higher tax rates, emphasizing the importance of tax planning before transitioning to entrepreneurship.
Deep dives
Understanding Tax Burdens for Different Categories
Employees typically face significant tax burdens, often paying between 40% to 45% of their incomes. When individuals transition from employment to self-employment or small business ownership, they can find themselves in an even higher tax bracket, potentially approaching 60%. This suggests that many who quit their jobs to start businesses unwittingly take on heavier tax liabilities without proper planning. Thus, awareness of tax implications and strategic financial management is essential for anyone considering entrepreneurship.