Taxes are your biggest impediment to financial success. The IRS has lulled us into just ignoring the fact that they are taking huge chunks out of our pay checks. If people had to write out a check for their taxes every month, they would revolt. It’s real sneaky of the IRS to just have their chunk “withheld” out of each pay check. You don’t think about it because it never made it into your account.
Most people just don’t get the damage the IRS inflicts on them. In fact, I am stunned when I talk to people at events where I speak. Some people will maintain they don’t pay any taxes, because they get money back from the IRS each year. I just say, “WHAT?” Even with the new tax laws, taxes are your biggest ongoing expense each year.
You’ve probably heard that compound interest is the 8th wonder of the world. The power of compound interest is something most people just don’t grasp. I know you have never even been told that taxes are compound interest in reverse. I’m here to tell you that taxes are just as powerful as compound interest, but taxes work in reverse of compound interest.
It’s not hard to illustrate the devastation taxes inflict on you. Just follow a math sequence and double a dollar twenty times. (I’ve done it for you here.) Run the math sequence without any consideration of taxes and then run the same sequence, but impose a 40% tax each time the amount is doubled. You’ll be stunned. See my YouTube video below explaining it all and make sure you get the charts that have the math sequences. In fact, this is one you need to share with family and friends. Check it all out, and let me know how stunned you are. Just leave a comment, and I’ll monitor the comments.