To be a better entrepreneur, is it true? Let’s discuss it, how much salary that you earn per month?
"Do you know that the salary that you earn per month is not your real salary?
The salary you receive each month had been cut with the income tax by the government (even before you had time to receive the money!). The bigger your salary, the greater the percentage of tax you pay.
In addition, Value Added Tax on goods and services imposed by the Government is fully obliged by end-users (consumers).
For example, if you buy a television, then the tax burden will ultimately be burdened by you as a buyer. Not by the vendor, or manufacturer. Similarly, when you eat in restaurants and watch movies in theaters, etc. Employers, as a business owner, would impose taxes to you (as consumers).
One more example-the phone, you realize that any cost of the phone calls you do include tax?
"Almost all that gives you pleasure including Tax Imposed by the Government!"
Meanwhile, as a businessman, only profit from your business is subject to tax. And as a business owner, you can either claim all labor costs (expenses) you (including the cost of telephone communication, facsimile, etc!) to the government to get relief / tax cuts. If we think over again, it’s better to be an entrepreneur.
For information, the maximum income tax for you as an individual is 35%. While the maximum income tax for a company is 30%.
"You See the Difference? There is 5% difference,! Why Government are So nice To The Business Owner?"
Perhaps, because the business owner is credited; create jobs? Or because they have great bargaining power and can influence the political-economic stability of a country?
To avoid big tax burden, like it or not, economically, entrepreneurs tend to choose to reinvest the profits they have, or open another new business.
That is, as an entrepreneur, you will have the ability, and economically, "required" to buy new assets, as the source of your income next.
Hopefully now you understand why business owners are getting richer. The profit given by government to businessmen encourages people to have their own business.
Why is that?
Because of course if you’re smarter, excess money is invested into the business, rather than used to pay taxes.
Even in the United States and Europe England, the government has been already aware that they will not be able anymore to provide jobs for their citizens so that the U.S. government encourages its citizens to create their own jobs, and give tax breaks as incentives / appeal.
Please do not misunderstand. I do not advise you to avoid your tax obligations. As a good citizen (ummm. ..), it is an obligation for us to pay taxes in accordance with the values that have been defined by the Laws.
I just want to show you that there are tax advantages that can be taken, if we do not just become just a consumer.And to be an entrepreneur is one smart choice to reduce the tax burden.
"It’s clearer Now, Why is The Rich becomes richer,
The Poor becomes poorer? There’s only one reason, it is because the Poor Pay Much Higher Tax! “
Is it fair?
Times have changed. Now is the era of independent entrepreneur!
Honestly, I do not have expertise in this tax. Therefore, I am open if you are willing to exchange information on tax advantages that we can enjoy as an owner if so I can say that it is better to be an entrepreneur.
