I’m fired up

I’m frustrated.

Concerned even.

Two nights in a row where I barely slept because candidly, I’m worried.

The way the government treats money is far too reckless. And the way people handle money is far too risky.  It is a lethal combination.

Money is an extension of people’s energy, their stored value…and it is being devalued in so many ways.

With government spending skyrocketing over the last few decades and especially the last few years, it is inevitable to see a rise in taxes.   Some of the government spending is essential, valuable, and serves us, other spending is more like cronyism where it benefits the few wealthy people at the expense of its citizens.

The government can go into debt or they can tax us to generate revenue….well, they do both.  Tax is the fuel for government spending and I suppose for paying off the debt (over 30 trillion, not sure how they will pay it off).

Saving tax used to be a smart strategy, you know, a good thing to do, but in the current political climate (both sides are addicted to spending) and economic climate (markets down, inflation up), it has become critical, even essential to tackle your finances and taxes.

I am sure you have heard there are more agents being hired by the IRS (tens of thousands) and recently the IRS employment contract asked if they were willing to use force or trained with weapons (that has now been recently removed) ……but WTF?

And what frustrates and motivates me, is that most people can legally and ethically save money on tax, which can help battle inflation, give needed funds for hiring and building processes and infrastructure, provide for their families, and reduce money stress (the number one reason listed for divorce) and focus on solutions. But due to misinformation, complication, and feeling too busy, people are stuck in a place they don’t know what to do, or where to start, and so they tip the government.

You see why I’m so passionate, and motivated, and feel such a desire to help. I figured it makes sense to take a break and point out where this passion resides and I’ll get to what I am doing about this- some of the solutions don’t require you to pay a penny.

And it isn’t just income tax and government spending that has me fired up, it is also the printing of money that creates a double stealth tax…inflation.

Inflation, everybody has felt and witnessed it of late.  Inflation is stealthy in that it isn’t collected like tax but instead felt through purchases and a loss of purchasing power- watering down of the soup.  Your same dollars doing less, being worth less, and due to inflation, you are having to earn more to maintain your lifestyle which in turn increases your tax rate.   Yeah, sneaky right?  Less purchasing power and more tax (the double stealth tax I mentioned above). You have to earn more money to buy the same things, but earning more means paying more in tax……unless of course, you get very clear on your finances, especially your tax strategy.

A CPA alone cannot solve this, they aren’t trained for all the strategy and possibility that is out there.  They are part of the solution, that is unless they are merely a historian telling you what you owe, but the full solution requires collaboration.  Retirement planners default to delaying tax, which is not the same as saving tax, and is very dangerous.

Without the right information, strategy, team, or collaboration, most people make the mistake of letting the tax tail wag the dog….meaning, they do things for tax deductions they wouldn’t otherwise do AND it confiscates and destroys wealth.  Buying a depreciating asset or spending money to get a deduction means you spend a dollar to save around 35 cents, effectively losing 65 cents in the process… UNLESS……

You learn about tax arbitrage, focus on tax credits instead of deductions, and reclassify your income in one of four ways:

  • Active to passive (saving up to 15.3 percent)
  • Ordinary income to capital gains (potentially cutting your tax bill in half)
  • Tax-Free (especially if you are charitably inclined or selling a business)
  • Tax Arbitrage (spend a dollar, get more than a dollar back in tax credit).

And for those naysayers, the people reading this that buy into the narrative that think the rich don’t pay any tax, realize, in my surveys and 25 years in finance, 9 out of 10 small business pay too much in tax due to a lack of knowledge, a complicated tax code, and being so overwhelmed trying to make ends meet. And even though small businesses employ more people than big businesses, small businesses don’t have a lobbyist in DC.  They aren’t contributing millions or more to campaigns in return for favors.  They are simply working, hiring, and trying to make it all work while paying more than their fair share.

And when we help these businesses reduce the overpayment of income tax, they hire employees, provide services to the public, and add more value to the economy, it actually helps everyone because of the velocity of money (more on that later).

But, in case you worry that paying less income tax means people don’t pay tax….let’s do a quick rundown.  Income tax is only one of the many taxes. There are property taxes, excise taxes like gas tax and including the tax on alcohol, tobacco, and marijuana (often referred to as sin tax- sure you can forget about your troubles but have to pay more to do so), sales taxes, FICA/payroll tax (Medicare, social security, insurance tax), estate tax, state income tax, capital gains tax, travel tax, VAT tax (happens when traveling to Europe or Michigan) etc, etc.

A part of the solution to our money problems is the velocity of money aka V2.  This comes with efficiency, keeping more of what you make without cutting back, and ultimately adding value- through serving others and solving problems creating profit and production.     Less tax, more production.  More money to improve businesses, products, and services.  Not the giant asshole businesses that use the government to change laws that only favor that business or fund a congressmen or campaign, but the people that are the backbone of our economy and value creation.  The real essential businesses.

This is not the time to do nothing or watch the news and become afraid.  In fear, we lose our freedom and our ability to provide.  It is time to look for solutions.  To help those that consistently provide and create.

I’ve been working for the past few years, have a plan, and it is time to tell you about it.   Here is my part and my plan to help.

I’ll be posting a video a day on YouTube. 

This will be to support those that have more time than money or simply want regular reminders and insights to navigate the economy, personal finance, and business. I am posting the first video this week and then daily starting next week….subscribe at Youtube.com/garrettgundersontv

I’m hosting a Roundtable 

…for business owners that have at least 650,000 of taxable income on October 19th in Nashville TN. We are more than halfway full. Only 20 tickets total. Email [email protected] if you are interested in learning more and for a quick analysis of your taxes without charge.

I’m on a comedy tour 

It is time to laugh at money’s expense…for a change.  To laugh and hopefully learn.  To connect and come together in a divided world through the magic of laughter.  The tour is called “Coming Together”. Get tickets at 
Garrettbgunderson.com.  Use GGFF for 20 bucks off.   (more dates to come for 2023)

For those looking to get their financial house in order, you can go to wealthfactory.com/megakit for two of my books, cash flow guides, and a financial strength checklist. Wealth Factory has programs with full financial teams or even starter programs for those in the early part of their financial journey.

Build the life you love,

Garrett Gunderson 

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