Tax Evasion for Dummies

It’s that time of year again. You know, when our loveable government tax agency – filled with charming and fun people who have no need to read any further – bill you for living in the United States.

Wait, they let you figure out your own bill! Yet, you must first decipher the ‘secret code’ (without a decoder ring) that is 700 pages long. And then there’s Chapters 2-40.

If you misinterpret the code, you may be required to pay an “I couldn’t figure it out” penalty or get sent to a Government Recreational Facility, which is funded by those who did figure out the code. Confused? Don’t be! Here are THREE big points to help you:

1)      Earn more, pay more. It’s like a reverse commission. Too high? See Item 2.

2)      Earn less, pay less. There! Or you can…

3)      Earn nothing, pay nothing! PLUS, you get paid by people in the other two groups to continue doing nothing. See? That’s why it’s called a system!

Now this is all cleared up, here’s How to make your tax concerns a thing of the past.  

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First, please know that I am not an accountant; never have been one and I get nervous in the presence of Excel. My advice in this area would rival that of lettuce.

Yet, I’d also be leery of Governmental type people giving you ANY spending advice, especially since they spent YOUR tax money on the following things I did not make up:

Ø  Gave Alaska Airlines $500,000 “to paint a Chinook salmon” on the side of a Boeing 737. Come to Alabama. I know some guys who’d do an awesome Largemouth bass for a 12-pack.

Ø  Spent $175,587 “to determine if cocaine makes Japanese quail engage in sexually risky behavior”. My opinion: Find the guy who suggested this study and arrest him because he is doing some very weird things.

Ø  Spent $151,988 on a study to determine “Why College freshmen had a tendency to add weight.“  I think I have your answer: a) Lots of beer, b) Lots of pizza, c) Very few parents standing over them saying, ‘Get your ASSociates degree off the couch and go do something.”  Does this solve the mystery?

“What? You’re like saying that like pepperonis are like not a fruit?”

(Editor: No, they’re not. And your boyfriend is a loser.)

Public Complaint Makes Private Disclosure

How many times have you heard someone say, “Man my taxes are SOOOO high?” Those people are actually saying:

“I am making a ton of dough. But since that is considered improper, I’ll make it sound like a complaint. Plus, I have a seriously awesome watch. ”

Yet – unimpressive as they are – they are onto something.

So, to quit worrying about our government flushing our tax money down those 1.6 gallon toilets:

Make More. Care Less.

To me, I don’t so much want some mythical mountain of money, I just want autonomy. (Thank heaven I had great mentors on this topic.) Some of this is attitudinal. So, instead of complaining about taxes, consider them thusly:

Your taxes really are a sales commission, paid to mostly responsible parties who try to keep you safe, give and protect freedoms, provide decent roads and sanitation, all within a compassionate system designed to catch you if you fall.

Sure, the policies are sometimes as dysfunctional as a quail on cocaine, but complaining doesn’t help or I’d be 6’4” by tomorrow morning. 

Your job – should you accept it – is to make as much as you possibly can to the degree you can live your freedoms happily. Save it, spend it, give it away. Leave the rest for taxes and call it a day.

Raise Your Pay Automatically

It’s NOT taxes that are stifling your financial independence, this is:

1.       Your own education about wealth attraction, accumulation, including…

2.       Business systems to improve cash flow

3.       Business systems to improve net profit (or however you’re directly paid)

And if your ‘investment’ in any of those comes back as “Either zero or next to it,” then your return is likely commensurate. Just an observation. Here’s an aside:

The most successful contractors I know are the SAME ONES every year, often on the front row of the seminars. (About 7-10 of my consultant friends have the identical observation; this is not coincidence.)

They invest in coaching, training. They invest in ‘systems’ for sales, operations, technical and – to my way of thinking – the most influential of all, marketing. (You just KNEW I’d slide that in!) Honestly, they realize that no leads or a forgotten presence can ruin the rest of their goals.

And they realize no investment in Customer Retention means, well, not much customer retention, who I’m pretty sure pay for everything you and I have.

They also hire slowly, ‘dismiss’ rather quickly and continue to improve the system. Their best people are well-educated in job performance AND improvement thereof. (This study of excellence is another topic, possibly worthy of a full coaching call. Your thoughts? Add it to comments below.)

So, as you complete your tax “commissions” this year, consider it a little scorecard to tell you:

“Am I closer or farther away from my goals than last year?”

This is a decent reading on your Autonomy Meter. If farther away, make adjustments (call your coach here), and if closer, congratulations. My hopes are that after writing your commission check to the government, you’re a giant step closer to not caring how much it is.

Adams Hudson