Did you know the high bracket for Federal income tax in 1913 was 7%?
Today it’s 37%.
What about the time in between 1913 and today?
That 7% high rate lasted for three years. Then it went to 15%.
Then… make sure your sitting down for this next part. It then went to over 60%.
Dipped back down to 25% during the Great Depression. Then skyrocketed over 60% again.
Then over 70%.
Then over 80%.
Then over 90%.
Can you imagine paying 94 cents out of a dollar in Federal Income Tax? That’s been the highest tax rate since 1913 until today.
Today the high rate is 37%.
We have averaged 57% from 1913 until today.
We all witnessed the greatest bailout in American history. The CARES act.
When I got in the financial services industry 22 years ago the national debt was 6 Trillion. Today is over 30 Trillion.
CAN WE EVEN WRAP OUR BRAIN AROUND HOW BIG, HOW MUCH 30 TRILLION REALLY IS?
HOW LONG WOULD IT TAKE TO COUNT TO 30 Trillion?
There are 365 days in a year so you would count 24X60x60x365 = $31,536,000 in one year. To find how long it would take to count to a trillion dollars divide 1 trillion by 31,536,000. That is 1,000,000,000,000/31,536,000 = 31,709.79 years.
And that’s just ONE Trillion.
ITS A LOT OF MONEY.
Why is this relevant? Because a lot of you, wait, maybe not you, someone you know, who is telling themselves the wrong story.
Wrong story? Yes.
I hear it. I’ve said it. I’ve felt it.
It’s a limiting story. Limiting us from the deep happiness that awaits each and everyone of us.
Happiness and fulfillment. To not only create at deeper levels but to also enjoy it.
That person that keeps telling themselves the story that they “pay too much in taxes” and allows that story to weigh them down are limiting themselves.
Limiting happiness and greater production in their lives.
Stop that for you and for all those around you that you care about.
So then, what do we do? Great question.
Take all the legal deductions that you can. Especially owning your own business.
Then pay your taxes and focus on value creation.
We have averaged 57%. We are at 37%.
Federal income taxes are on sale.
Pay them. Focus on creation of greater value and the exchange of that versus “I pay too much”
Let’s say you hit the highest bracket. So now those dollars at the high level are taxed at 37%. That means you get to hold onto 63%.
The best tax strategy then is to earn another dollar. We are then focused on value creation and the exchange from that.
This will bring us the most happiness and personal fulfillment.
Not sure? Test it.