Monday, April 15, 2013

Wealth Through Paying Taxes

The tax deadline is today in the United States of America. For most people, the government takes an estimated amount out of each paycheck earned. Some people are left with all the responsibility in paying their taxes on a quarterly or annual basis. Others get paid in cash. The question is do you pay or not? 

One opinion is that you should pay the least amount as possible. If you get paid in cash, that means you have the opportunity to pay $0.00 in taxes. While this might look like a great thing, the stress attached to this style might be worth more than the taxes not paid. Having to worry about the IRS can take away your focus from building wealth. The consequences can be disastrous. Maybe you get by. But if you don't, you will not only have to pay the consequences, but family and friends around you will too.   

Another opinion is that you just follow the tax code and pay what the IRS says is owed. It is not necessarily stress free (especially when going through all the paperwork), but in the long run, it will allow you to focus on building wealth, and not on avoiding and stressing whether or not the IRS is going to knock on your door later in life. 

When building wealth, remembering that money alone doesn't build wealth is important. Receiving services like defense, infrastructure, and others given to you and those around you knowing you haven't paid enough in taxes can also get in the way of building wealth. These organizations also spend that money back into the community and might be a customer or revenue generator for you. Paying your share of taxes eliminates that worry and is worth it. 



The two biggest theats to wealth creation are taxes and inflation .


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