Rich Dad Poor Dad: Chapter-4: Taxes Power | Billionaire Mentor - BM

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Monday, 10 February 2020

Rich Dad Poor Dad: Chapter-4: Taxes Power | Billionaire Mentor

Chapter:4- History of taxes and power of corporations:


My rich dad made the game smart, and he endowed it through corporations - the biggest secret of the rich.

I remember being told the story of Robin Hood and his Mira Men at school.  My teacher had this wonderful story of a romantic hero who robs the rich and gives to Tapur.  My rich father did not see Robin Hood as a hero.  He called Robin Hood a crook.

Robin Hood may have been long gone, but his followers remain.  I often hear people say, "Amir didn't pay for this?"  Or "The rich should pay more in taxes and give it to the poor."

It is the Robin Hood fantasy, or the giving of the rich to the poor, which has caused pain for the poor and the middle class.  The middle class is so heavy because of the Robin Hood ideal.  The reality is that the rich are not taxed.  It is the middle class that pays for the poor, especially the educated high-income middle class.

Again, to understand how things happen, we need to look at the history of taxes.  Although my highly educated father was an expert in the history of education, my rich grandfather himself was an expert in the history of taxes.

Rich Dad explained to Mike and me that originally, in England and America, there were notaxes.  Sometimes, temporary taxes were levied to pay for wars.  The king or president will put out the word and ask everyone to "chip in".  Britain was taxed to pay for the fight against Napoleon from 1799 to 1816 and in the US from 1861 to 1865 to pay the Civil War.

In 1874, England imposed income tax on its citizens permanently.  In 1913, an income tax was enacted in the United States with the adoption of the 16th Amendment to the US Constitution.  At one time, Americans were anti-tax.  It was a tax on tea that led to the Stolen Tea Party in Boston Harbor, an event that helped ignite the Revolutionary War.  It took nearly 50 years for both England and the United States to sell the idea of ​​income tax.

These historical dates suggest that both these taxes were initially levied only for the rich.  This was the point that rich father Mike and I wanted to understand.  Heexplained that the idea of ​​taxes was popularized, and accepted by the majority, by telling the poor and middle class that taxes were created only to punish the rich.  This is how Themas voted for the law, and it became constitutionally legal.  Although, it was intended to cause nuisance to the rich, in fact it punishes those who voted for it, the poor middle class.

"Once the government got a taste of money, its hunger increased," Amir Dad said.  "Your father and I are just the opposite.  He is a government bureaucrat, and I am a capitalist.  We get paid, and our success is measured on the opposite behavior.  He gets paid for spending money and hiring people.  The more he spends and the more people he hires, the larger his organization becomes.  In government, a large organization is a respected organization.  On the other hand, within my organization, the less people I hire and the more money I spend, the more I respect my investors.  That is why I am not like government people.  They have different objectives than most business people.  As the government grows, more and more tax dollars are needed to support it.  "

My educated father sincerely believed that the government should help the people.  He loved the idea of ​​John F. Kennedy and especially the Peace Corps.  He loved the idea that both my mother worked for the Peace Corps, training volunteers to go to Malaysia, Thailand and the Philippines.  He always strives for additional grants and the budget increases so he employs more people in his job with the Department of Education and the Peace Corps.

When I was about 10 years old, I used to hear from my rich father that the government worker was a lazy thief, and from my poor father I used to hear how the rich cheats are crooks who should pay more tax.  Both sides had valid points.  Working for one of the city's biggest capitalists and coming home to a father was a prominent government leader.  It was not easy to know which father to trust.

Yet when you study the history of taxes, an interesting perspective emerges.  As I said, the division of taxes was possible only because the public believed in the Robin Hood theory of economics: take from the rich, and give it to everyone else.  The problem was that the hunger for money over money was so high that taxes were to be levied soon.