Tax LOOPHOLES The Rich Don’t Want You To Know -Robert Kiyosaki
(upbeat banjo music) (air whooshing) – Hey, guys, welcome to “Advanced Lessons in Millennial Money,” featuring Robert Kiyosaki. I’m Alexandra Gonzalez. In this two-part episode,
I got a chance to speak with Robert and his tax
advisor, Tom Wheelwright. Tom has been a CPA for 34 years, and has an extensive background
in accounting and education. We’re lucky that he joined us for this important lesson on taxes. To all of our subscribers, keep an eye out for the release of part two,
coming in the next few weeks. And if you aren’t a subscriber, click the button now to get notified. One of the things Robert and many of the wealthy talk about
is how they don’t pay taxes, and I asked Robert and Tom
to clarify what they mean. (air whooshing) I want to know, and I’m sure
all our viewers wanna know, how is it that you guys don’t pay taxes? – Legally. – Legally. – You can always do it as a crook, but we don’t want you
to do that, right, Tom? – That’s right. – So the question is, how
do the rich not pay taxes? Right? It’s a multi-step process. Let’s talk about this one
first, to keep it small, is here you have, you go to school, get a job, you become an employee, but you learn nothing about taxes. And then you become a little entrepreneur, you start your little
falafel shop business or whatever you start, right? So that you’re self-employed,
small business. And then you have big business, 500 employees or more, or I for investor. So, Tom, how much tax do employees pay? – Well, typically, if
they’re making a good salary, and this is, by the way, the
same rates around the world, typically it’s gonna be about 40%. – 40%. And after the Trump tax
cut, did that change much? – Not much, it didn’t. – So if you’re a, “Oh,
I’m gonna start my own “little business, I’m gonna
start my little pizza shop, “or my coffee shop,” how
much do these guys pay? – Well, now it goes up,
because you’re paying both your share of the taxes
plus the employer share of the taxes, because
you’ve got both sides. So now it goes up as high as 60%. – So when you hear a young
person, an old guy like me, saying, “I’m gonna start my own business,” they don’t think about taxes, do they? – No, and in fact, this is the place where people get in trouble. Because over here, the money’s being taken out of your paycheck. But here, you’re
responsible for your taxes, and so what happens is that you go, let’s say you’re successful
with your pizza shop, right? All of a sudden, tax time comes around, “Oh no, I’ve spent all my money, “and I don’t have money to pay the taxes.” And people go out of
business real fast here. – Well, it is surprising,
’cause a lot of the millennials do wanna start up their own
small little business, right? And what they’re not
aware of is that they’re gonna be in the 60% tax bracket. – Because taxes are your
single largest expense. So if you’re gonna
start your own business, you gotta be aware of taxes here. Now, big business, that’s
500 employees or more, how much do they pay? – Typically, around the world, about 20%. – Now, why is it that
big-business people pay less than small business? – Well, basically, the government wants us to do certain things, and
they’ll give us incentives if we do them. And what they want out
of a big business is, they want employment. So they wanna create employment, because that creates
stability in the country– – Jobs. – Jobs, right? And so, the more jobs you create, actually the more tax benefit you get. – Well, look at Amazon right now. They’re looking at moving their company. How many tax benefits do
you think they’re getting? – Oh my heavens, they pay
very, very little tax, Amazon does, and they pay,
you know, you’re talking about all those different kinds of taxes? Not only do they pay
very little income tax, but they’re also paying
very little sales tax, and unemployment taxes,
and all those others, because they’re getting benefits from multiple types of government, the federal government,
the state government, the city government, the county government.
– Is that how Elon Musk started his battery factory in Nevada? – Well, yeah, I mean, Elon Musk, he gets huge research and
development tax benefits, which, by the way, that’s a tax benefit that is available in most
countries more than the U.S. – Right. So if you’re gonna stay small, I mean, it’s a good place to start, but you gotta really wanna come over here eventually. And then the professional investors. See, these guys are passive. These guys invest in
stocks, bonds, mutual funds, they save money, they’re passive guys. They pay the highest taxes. But how much does a professional investor, like “Shark Tank,” how
much do these guys pay? – So they can pay as little as 0%. – Right. – They can actually completely
eliminate their tax. (air whooshing) – One of the biggest misconceptions out there regarding
taxes is that tax breaks are only given to the wealthy. Robert had a great answer for this. Let’s take a listen. (air whooshing) Well, I think this is actually
a very interesting topic for our audience because of the fact that a lot of the people complain
that the only people who get tax benefits are the wealthy. And I think it’s also
because, like you said, it’s a series of incentives of what the government wants you to do. – And that’s the mistake,
it’s not the wealthy. You see a lot of wealthy people here. You know, if I, let’s say
I’m a CEO of a company, I make a million dollars a
year, I still pay 40% tax. And I could be a doctor or a lawyer, and I could make a million dollars a year, and still pay 60% in tax. See, it’s not what you
do, it’s your mindset in the quadrant here. So this is my Poor Dad,
this is my Rich Dad. So which one do you wanna be, you know? (air whooshing) – In this clip, Tom goes on to explain the difference between
the rich and the poor. (air whooshing) – The difference between
the rich and the poor is, how do they use taxes to their benefit? You look over here, you
ask about the big business, well, that’s employment, right? But investors, why do professional
investors get benefits? Well, because the
government wants housing, they want commercial projects built, they want energy done,
that’s Elon Musk, right? – They want food. – They want technology,
they want food, agriculture. So all of those things
that the government’s trying to incentivize people
to put their money someplace, they really want them to put it over here. And if you put it over here, these are pretty much consumers, these are consuming the money, and the government, what they really want is they want all the producers over here. – Yeah, I had a friend who started off, he never went to school, but
I think his grandma gave him 10 chickens, and they were
producing 10 eggs a day. And by the time he
retired, he was producing 10 million eggs a day. Did he get tax breaks for that? – Enormous tax breaks, because
every dollar you reinvest in your business, you
get a tax break for it. – Yeah. (air whooshing) – Robert then goes into another
lesson from his Rich Dad. And for all of you entrepreneurs, you might wanna pay attention. Let’s see what he said. (air whooshing) – So the other thing that
my Rich Dad taught me, which is this here, is since
I was not a very good student in school, he just says,
“Remember the McDonald’s formula.” So the reason I talk about this McDonald’s formula, this is Ray Kroc. If you saw the movie “The Founder,” he says it right in the movie. The purpose of McDonald’s
business is not hamburgers. Everybody thinks it’s hamburgers. McDonald’s business is to buy real estate. You see, a hamburger stand
produces so much income, it can afford the real
estate, where the average guy, you know, graduated from
school with their MBA or Ph.D., they go, “Well, how come I can’t do that?” Well, ’cause you’re over here. So McDonald’s did this here,
so they had their business, which is hamburgers,
bought their real estate. So today, McDonald’s owns more real estate than the Catholic Church. Does the Catholic Church
get tax breaks, too? – (laughs) Enormous tax breaks. They don’t pay tax on any of their income. – Yeah, so McDonald’s competed
with the Catholic Church by just building hamburgers
and buying real estate. Any comments on that, Tom? – Well, the great thing is, you don’t have to be
huge to do this, right? I mean, you can do it with your startup business, your
online business, right? You guys are doing all
those online businesses– – You could do it from here to here. – The tax law is ultimately fair, because you don’t have to be huge in order to take advantage. What you do have to have, though, is the financial
education, because you have to behave like these people. If you do what these people do, you get the same tax
benefits that they get. The challenge that most people have here is that they don’t have
any financial education, and so they do everything
as if they were up here, and that just gets them in trouble. Because these guys, that’s not
where the tax law is built. The tax law is built for
these guys over here. (air whooshing) – Next, Robert talks about
using debt to your advantage. Most people think all debt is bad. But little do they know, it
offers a huge tax benefit. Tom and Robert explain. (air whooshing) – So I’m gonna throw you one more thing. Again, this takes financial education. The number one asset I can use is debt. So the reason I like this place here, and get this, so let’s say I have, this is the McDonald’s
hamburger formula here. So I have $1 from my hamburger business, plus $5 of debt, so that gives me $6. What does that mean to you, Tom? – Well, it means you’re not
gonna pay very much tax, and it also means you’re
gonna make a lot more money. Because what debt does is it
accelerates on the plus side if you know what you’re doing, if you got the financial education, right? On the plus side, it
accelerates both your income, but it also accelerates your tax benefit. – Yeah, so this is my formula here, it’s the McDonald’s formula, except, let’s say I have Rich Dad Company, I have more than Rich Dad Company, but Kim and I buy real
estate with Ken McElroy and with Tom’s guy, who
knows we do all this. Because we can leverage up with debt, but good debt, debt that
we don’t have to pay for. These guys have bad
debt, like their house, their car payments, student
loans, really horrible debt. But there’s good debt on this side. But you can do the same thing
this way, if you want to. (air whooshing) – Thank you guys so much for
joining us on this video, and I hope you guys loved
it just as much as I did. And if you did, give it a thumbs-up, comment if you have any questions, and subscribe to our channel. (speaks in foreign language) (upbeat banjo music) (beep) Oh my gosh, I almost fell asleep, but that was a very long (laughs) clip. (crew members laugh) (beep) Oh my gosh, I’m so awake,
that was a really (laughs) (crew members laugh) (beep) Thank you guys
so much for joining us on this episode, I spit. (laughs) (crew members laugh) (Alexandra laughs) (beep) The most important lesson of all– (crew member murmurs and laughs) (laughs) Whoa! (air whooshes)
How do i take money with out taking a paycheck or salary and disbursements? Using my cashflow like do i use a s corp ?
Robert says there are no taxes imposed on debt, but then, interest is charged on debts, so isn't then more or less the same?
Thats modern slavery.Basically you go to school and get trained to become a slave. That explains the recess and punishment for tardiness and absences in school and it is 5 days a week like the real world of the modern slaves. Brilliant. I owe, I owe its off to work I go!
he's been repeating this 4 quadrants over and over again. Everyone wants to get into the B quadrant to pay no taxes. but not every business succeed or is viable. even you go into business with someone elses money, chances are still big that the business will bust. so what's his view on that? it is ok to go bankrupt using other peoples money as long as you are not liable for it? Beside, its not like the B people DON"T pay taxes, they take the risks, create jobs, employ people, so their EMPLOYEES still pay taxes, even though their income tax is lower. So in total they STIL pay taxes, even Amazon does. Also, the ONLY business he knows is the real estate business. that is a business formula that existed since the begin of the civilization. he does not know how to innovate, or any technological stuff, science and all that. While he's good explaining the tax differences and teach people to change their mindset, he's by no mean a business guru.
This is so amazing….where can we learn more about this? Is there a course that goes more in detail?
If i keep investing, how do i eat, buy home and get clothes?
Thanks for one of the secret how rich people invest.more interested to here more .I read book 5 yrs back.keen to know more.
Is this girl just green screened onto these videos ? I feel like they never entertain her answers
Maybe just become a CPA? Or are they ignorant too?
I love this and the fact that sheβs Latina! Hola hermana π
The part at 9:12 is not very well explained. Where is the 6 dollars debt coming from in that equation?
I own and work at my restaurant….I don't pay 60%. I'm under that for sure. Maybe 30%…maybe slightly less. Don't take the numbers for fact…listen to what he is trying to teach. Stop working for a paycheck.
This does make sense, when you re-invest you receive tax breaks.
please get rid of this girl… annoying as fuck
Tax and debts can be used to make more money however learning how to use these two tactics can be tricky!
The Gordita was a nice touch. Trump 2020
No pay any tax let's not have our bins emptied or heath service or welfare etc etc
And everyone here will be back to there job tomorrow as an employee lol
This lady doesn't speak English at home… therefore struggles with it at work
I am in love….thank you so much for this.
Looks like Tom really stayed in school
All you need is an accountant with imagination
How to get good debt?
lose the girl she really doesn't make the content any better
Why does this remind me of the sesame st of money and that girl is Elmo?
Tax havens. Knowledge is the key to maximizing gains using OPM.
dear poor people rich man s advice is only for rich people
he figurativly is saying yes you bild your own rocket and fly to the moon
You know, if you think about it, TAXES AREN'T NECESSARY AT ALL. We can let companies build roads, and just make sure to regulate prices for driving on them, we can let companies run national parks, we can let people themselves run almost if not everything. We just need regulation to keep them all in check, but not taxes. Government claims it needs to exist in order to support these things, but government does not need to take taxes. TAXES ARE A SCAM. Did you know that the IRS isn't even a domestic organization? Part of me even wants to say that Government itself is an unnecessary illusion.
What an arrogant creature you are Robert. Obviously, you are profiting soley on the platform of "this is the priblem" and yet you NEVER provide answers. Additionally, you apparently have a fascination with brainless and pointless young females with 0 to contribute to the program. I have unscribed and reget any time I lost to your nonsense.
Awesome videoππ
This GUY is such LOW LIFE LEECH !! Just like the wall street, instead of changing the system ,help the system is his Motto…
I guess I should use my first home as a investing and tax strategy…
I want to learn from this but my brain's not soak up information
Please just let the vid play. It doesnt need the commentary.
So he said what Baghdad was home and cars what is good day what's the example for good debt
Elon Musk built his business lol, woteva.
So that's why the government give tax breaks to the big business so Big business creates more 40% and 60% tax payers for the government and gets the money back. the Farming of taxpayers… system has to change
This seems very interesting butti son t get the debt thing form Robert. Howard do i go in debt? How can be good? Someone would be after you trying ti get you to pay the debt! π€·ββοΈ
I want to be a automotive engineer and designer
Iβm just using this type of information for when I rebel away and start my own company. My company may be small but we will think big.
I am Alexandera the android sent by cyberlife
So WHY WHY why why why why you never telling what those people do???????!!!!!
To be honest, most of this video is mostly accurate and useful. However, kiyosaki talks about two types of people in two sectors. The ones with the PhD's and those who are self employed and the ones who are part of or run their own big businesses and then invest in real estate. My big question is, in order to be part of big business and invest in real estate, you have to be self employed, I.e. an entrepreneur. So how can one be over in the rich tax free section without first having been through the ' poor section'?. Gimme a solid answer and I'll give you a million bucks I sware to god. Not even joking.
More Click Bait. Title says βTax Loopholes the rich donβt want u to know.β Not one loophole was explained they just talk about the quadrant from his book. Starting to find this a common thing with Roberts videos. Just explaining ideas and not details. Kinda lame.
9:13 wtf $5 in debt and $1 dollar cost a burger. 1 + 5 = $6 profit… While you are $5 in debt.. I dont get it
So you use debt from a big business to increase your growth? Is that correct or did I interpret that wrong?
Complete pointless S**t
Now lets addup all of the other employees that work for your business on Social Media including yes the facts that yes you are now Training Them to do something as such for yez your very particular business OK!
Therefor wage or nowage they are being yes Financially Compensated by your company for their services meaning yes they work for you.
Now we have to examine The posible employee & employer relationships here.
Next are these particular employers low income & participants of yes government funded programs.
IE in order to get ones Welfare one must work in exhange for ones benefits meaning yez either unsubsidized employment that includes self employment, or subsidized emlloyment meaning your employer gets yez a subsidy & they pay you as well or if you can not get a wage paying Jobby Job you are to participate in work-activities aka work-related activities & this also includes yes State Work Verification Plans that are used to combat fraud via a State process of additional verification.
Yes if you are one of these particular populations of people then this affects you in America that is.
Yes if you are getting such services then as a "condition" you "must" work in exchange to get your benefits/grant be it Welfare or TANF etc….
Yes E&T Employment & Training the keyword is also work-activities, work-related activities, employment related activities that still counts as workforce participation officially.
Thus there is much much more complicated mathmatics & credible congressional calculations that balance your activies out that also includes you in a States WPR.
Theres other bits of official WorkForce Employment & Training legislation that applies here & State Calculations & yes other Workforce Development Programs Calculations that are to be applied that makes such a persons activites in these programs count.
How do we find out what Incentives are available from state and federal??
How about opening your own company. Can you go in details on the solo 401k if you pay yourself W2 from your S Corp or LLC llc.
My family all has small businesses and we pay zero tax but we also don't "make" money, we "reinvest"
I need to what business should do as an investor in India so i can pay very less tax Or zero tax.
All the knowledge you discuss about real estate investor don't pay tax is for USA investor, i want know about India indian investor.
Please give me knowledge at email [email protected] at least if you don't make a video.
I'm disappointed. I thought this was real. Hours of my time wasted. Thanks, Robert.
See the video of him caught, look at how guilty he looks. You be the judge. Watch the whole thing if you have to. I give you part three to save you time.
https://youtu.be/9iimvyVCEGA
THAT GURL THO ππΏ
Any more examples of good debt?
Look. I will have any attitude that is required. If I could monitize my life I would. I'm failing now, if I could fail as a independent component of the market I'd start.
I can understand not paying business tax, but how does he get out od income tax? The only way i know of is to have the same amount of deductions are your income, but then you are not making any money
I'm 12 years old and I have already done reading the Rich Dad, Poor Dad
I'm 12 years old and I have already done reading the Rich Dad, Poor Dad
A guy I worked with had six rental houses and three children, worked in entertainment and paid 0 taxes.
Pretencious girl… please get out of the video
I have failed lots of times yet now I make 679 bucks a day! because of this terrific website here EZpay100 .c o m
Inspiring videos and books but.. It's 20% in the UK for most employees (or certainly a massive percentage) so that all around the world part might need editing haha
How do I move from the left to the right?
I wonder if millennials are supposed to relate to the girl thatβs the host… she doesnβt seem very bright.
Iβm always amazed how long these videos are and how little content they have
Starts @0:48
i think dat the investor still pay taxes atleast 5% , blc when he gives his money to the company he is investing dat company pay taxes and the investor profits is based on profits returns which the company has made ,which means workers and taxes have been already paid by the company true or false
great video i appreciate
Robert Kiyosaki is a cunt.
She sounds like dora the explora
Can I date you let's make money together darling π€ππ
Can someone send this video to A.O.C and all Democrats lol….
Where do I get "financial education," he makes that statement so many times but no where does he say where or how to obtain that knowledge?
the more you spend less tax more tax break opportunities,, numbers lie to exageration, buy cheap or invest cheap in between make the numbers like building something cheap underneath the table, report losses
They call it TAX LOOPHOLE, WELL I CALL IT TAX RATHOLE…
Legal disclaimer at the end is obscured by video promos, and it's false for them to give this financial advice and then claim they aren't giving financial advice.
656 haters of the rich mindset here lol I really wish you haters could switch your poor mindset to a more passive income mindset.
THE WAY THEY DO IS THEY DEDUCT FROM THEIR EMPLOYEES EMPLOYEES PAY TAXES π€£π€£
bah, a Spruiker
Lost me at good debt…
Has anybody ever noticed how he never gives the answer to what is being asked?
Mafia don't pay taxes too.
It's a bit of a misleading video. I own a business and what they are talking about is lowering your taxes but not necessarily getting more of the money you make. That's easy. But what people want to know is how to do I generate the max profits and be able to keep as much as I can.
Elon Musk or Jess Bezos pay little tax because they use most of their profits to fund other projects that the government has tax breaks for or to service large debt. This does not lead to more money in their actual pocket. When Jeff or Elon need money for every day life they need to pay themselves and that money is taxed.
If my business makes $100,000/year and I pay 10% small business tax then I owe the government 10k. But I could avoid that 10k payment but reinvesting $100k in my business or paying large debt. But that doesn't make me personally any better off financially unless that reinvestment leads to more potential down the road. For which I will have am even larger tax payment.
Stupid. Just invest in precious metals, burry most of your wealth in secret places, avoid taxes, fight the IRS at any measure. Even with your life
Robert sir i can't understand your English…. Please say clearly
Really didnt explain any thing
https://youtu.be/d0plgCrvV_k
These people, and corporations, feel they are above all people that pay taxes. The government needs money from taxes to pay for the services it provides to the people. All people depends on the military, police protection, education, highway building and maintenance, welfare programs, hospital and health care, and many more services.
Included also are water services, sewage plants, dams and rivers creation and maintenance, and so much more.
If these people, and corporations don't pay their share of taxes, why should they benefit when they need the police? Or the military protection at home and around the world?
Should they be allowed to use services of the local police? Or call the federal government agencies? Or use the water and sewage services or any services that the government provides?
These people are not paying taxes for the services they receive, and they SHOULD PAY THEIR SHARE OF TAXES!!
So no hacks? Where the hacks at?
Is it me or does he not make any sense?
They said just said people who made 1 million are in the poor colum? Huh? I have read his book. Most of his advice is not helpful.
Robert: Right Tom….
Tom:….Right
I also don't like the way this girl interrupts the video
Does Robert Kiyosaki, the biggest financial author, need introduction, by a girl whom we don't know
As long as the rich determine what happens in the world with money, nothing will change. Making money is mainly ….. how do I pull someone else in …. well that is the middle class (that is being srewd)
This is by far the best website I have found to get started for all my real estate needs bandits signs and more at a huge discount .click the link below https://materials.uzmarketing.com/#_l_p4
This video explained nothing and was just click bait. Skip this video if you came to the comments first.
Am I the only one who didn't learn anything new in this video? Seems like the rich still don't want you to know.
Federal income tax only applies to 3 classes. Non Resident aliens, foreign corporations deriving us source income, us citizens working for foreign corporations deriving US source income. Im a US citizen i dont pay nor legally file taxes cause i properly follow the law
And where does one get this "right financial education"?
So…………
Step 1, Become an accountant.
Step 2, Become a tax lawyer.
Step 3, Learn about real estate and property development.
Step 4, Learn about debt and the history of the stock market.
Step 5, acquire a truckload of cash from somewhere to finance all this, to begin with?