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From the time I was about 10 years old; I would hear from my rich dad that government workers were a pack of lazy thieves; and from my poor dad I would hear how the rich were greedy crooks who should be made to pay more taxes。
Both sides have valid points。
It was difficult to go to work for one of the biggest capitalists in town and e home to a father who was a prominent government leader。
It was not easy knowing who to believe。
Yet; when you study the history of taxes; an interesting perspective emerges。
As I said; the passage of taxes was only possible because the masses believed in the Robin Hood theory of economics; which was to take from the rich and give to everyone else。
The problem was that the governments appetite for money was so great that taxes soon needed to be levied on the middle class; and from there it kept 〃trickling down。
〃
The rich; on the other hand; saw an opportunity。
They do not play by the same set of rules。
As Ive stated; the rich already knew about corporations; which became popular in the days of sailing ships。
The rich created the corporation as a vehicle to limit their risk to the assets of each voyage。
The rich put their money into a corporation to finance the voyage。
The corporation would then hire a crew to sail to the New World to look for treasures。
If the ship was lost; the crew lost their lives; but the loss to the rich would be limited only to the money they invested for that particular voyage。
The diagram that follows shows how the corporate structure sits outside your personal ine statement and balance sheet。
How the Rich Play the Game
Is reduceddiminished by expenses
Assets 》 Ine
(through personal corporation)
It is the knowledge of the power of the legal structure of the corporation that really gives the rich a vast advantage over the poor and the middle class。
Having two fathers teaching me; one a socialist and the other a capitalist; I quickly began to realize that the philosophy of the capitalist made more financial sense to me。
It seemed to me that the socialists ultimately penalized themselves; due to their lack of financial education。
No matter what the 〃Take from the rich〃 crowd came up with; the rich always found a way to outsmart them。
That is how taxes were eventually levied on the middle class。
The rich outsmarted the intellectuals; solely because they understood the power of money; a subject not taught in schools。
How did the rich outsmart the intellectuals? Once the 〃Take from the rich〃 tax was passed; cash started flowing into government coffers。
Initially; people were happy。
Money was handed out to government workers and the rich。
It went to government workers in the form of jobs and pensions。
It went to the rich via their factories receiving government contracts。
The government became a large pool of money; but the problem was the fiscal management of that money。
There really is no recirculation。
In other words; the government policy; if you were a government bureaucrat; was to avoid having excess money。
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