Module 1

The Truth About Taxes

Lesson 5
Death & Taxes
Transcript
Let's talk about a little context here when it comes to taxes. Who cares more about your money
than you do? Yes, there is somebody. In the US we call that Uncle Sam, the Internal Revenue
Service. In Canada it's the Canadian Revenue Agency. In, uh, Great Britain it's the HMRC. So,
wherever you are, wherever you are, there is somebody out there, the government, who cares
more about your money than you do. Here's some examples, these are tax examples in the US,
but my guess is, in fact, actually, I know for a fact, they apply in some way in every country.

Let's look at just how much your government cares about your money. Income tax, they want
income tax don't they? Employment tax, sales tax, property tax, gasoline tax, luxury tax, death
tax, gift tax, sin tax, use tax, alternative minimum tax. That's a US specific. Health care tax, now
health care tax, something that's fairly new in the US, but has, worldwide, is very common.
Employment tax, we call those social security taxes, also worldwide.

All of these taxes, it doesn't matter which one they are, whether it's employment tax,
healthcare tax, sin tax, you know what that is, right? That's tax on tobacco and drugs and
alcohol, gambling. Those are sin taxes. Okay? Did you know there's a tax when you give money
away? There's a tax when you die. Everybody knows when you buy gasoline there's a big tax.
That's half of- It's become close to half of the actual cost of a gallon of gas, or a liter of gas.
There's luxury taxes, there's property taxes, there's sales taxes. There's use tax, alternative
minimum tax, we're going to focus heavily on these two. The reason is because we can bring
these two way down, that's where those are the easiest ones to reduce, okay? Now, in my
book, Tax-Free Wealth, we talked about some- We talk about these others, but today, and over
the next seven courses, we're going to focus on income tax and employment tax. Take a second
and think about, okay, which of these taxes apply to you. My guess is most of them. What does
that mean to you? You go, "Well, okay, well, everybody pays tax, right?" But here's what it

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means. From a time standpoint in an 8 hour day, it means that you work approximately 2 hours
and 40 minutes just to pay your taxes. That's a 1/3 of your day. In a year, you work
approximately 4 months to pay your taxes.

In the US, we actually have a day we call Tax Freedom day. It gets later every year, but this is
the day that up until then, everything we've done goes to the government. That's the
proportion of our year that goes to the government. Typically it ends in late April. After that,
okay, now we start making money for ourselves. If you're listening to this in January through
April, chances are you've been working for the government since the beginning of the year.
You're going to spend 4 months of the year just working to pay taxes.

In a work life, 13 plus years in a work life, 13 plus years. That is, okay, well, just think. I mean we
just said we can take it from 30 years to 18 years. It's about the 13 years we're talking about,
right? That's just on your investments. That's by, that's by increasing your investments. What
about all of the money you spend, all the taxes you pay on your earnings? 13+ years of your
work life is spent paying taxes. What does that mean? In a lifetime, it's 20 years. 20 years, we
typically call twenty years a prison sentence.
So the question is, how could we a little time off for good behavior maybe? Maybe a lot of time
off for good behavior? What could you do with 20 years of your life? If you had that 20 years
back, what would you do? If you could cut that 20 years off, what would it mean to you? Just
jot down a couple of notes, ready, go.

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