Generating Income: How Much Tax Do You Want to Pay?
Wednesday, February 3rd, 2010I want to ask you a question that a teacher once asked me. Do you want to pay the government $100,000 in taxes each year, or do you want to pay the government $1 million dollars in tax each year?
Be careful how you answer. The correct answer is that you want to pay the government $1 million dollars in taxes each year!
Why would I want to do that, you ask? Because the person who is paying $1 million dollars in taxes each year is making a hell of a lot more money than the guy paying $100,000 in taxes. That is, of course, unless the guy paying the $100,000 tax has a great tax accountant or is simply cheating on his taxes. Bottom line, you want to have a tax expense that is large, provided you have the income to offset it.
Income is the other side of the income/expense equation. Remember, to get out of debt you need to either decrease expenses, increase income, or both. This section of the blog is going to go over all types of ideas to generate extra income or cash flow. Just like expenses, there is no one-size-fit-all so pick and choose as you see fit. What is clear is that “there is money in them there hills momma,” go get some!