Hey guys Courtney Epps here with the OTB tax and I want to help you have a more relaxing and less taxing life.
And I’m going to share with you today just a couple things. One is the two tax systems that we have in this country and how you can actually get into the wealthy tax system which is the business owner tax system and two, the other thing is to share with you why you have to be in that tax system. And so I want you to know first off is that the average American makes $60000 a year per household. And so what ends up happening from that is that you have about $14000 in taxes that have to be paid. And so that means the take home for the average American household is $46000 a year.
Well, the problem with that is that the cost of living in America is $53000 a year. So you’re literally going in debt $7000 a year to work 40 hours a week, 50 weeks a year to have two weeks paid vacation as a W-2 employee. That is crazy.
And I actually I heard those statistics and had to go look it up for myself just to make sure that they were correct and they are. And so what happens is that we continually go into more credit card debt, more student loan debt, and people are living pay check to pay check because they can’t afford the lifestyle that they’ve created because they don’t realize that this problem even exists. See we spend more money a year on taxes than we do on food, on clothing, on housing and cars combined. So it is our largest expense and so it is the most important thing that you can do to try to figure out how to save money and taxes. So that leads me into the two tax systems. You have the W-2 employees and then you have the second tax system that was created for business owners.
See the tax system for W-2 employees that was created to take your wealth whereas the business owner tax category or tax system was created to give you wealth. And I want you to understand that 75% of Americans, excuse me, 76% of employment was created by small to medium size businesses and so what you need to understand is that in order for business owners to create more employees then we had to get tax deductions from that. So we create the employees. The employees pay the taxes. That’s just the way it works. And with the new tax laws, you can say that business owners are going to get more and more tax benefits while employees are going to get less and less. So somebody has to pay the taxes. But I want you to understand that you can get out of that system. You can still continue to be a W-2 employee and have a business on the side part time that can help you get into that second category and then that gives you the same benefits as a full-time business owner.
So you know I have a home based business. I had three full-time employees that work for me for my accounting practice. And I literally can write off my meals, and my mileage and my cell phone and my internet and a portion of my house is tax deductible because I operate from my home. So what I love teaching people is how to take what they’re currently spending money on today as living expenses as a W-2 employee, teach them how to have a business, something that they’re passionate about which will allow them to get into that second tax system and then from there you’re able to take your living expenses and redirect those into business expenses. And you get to write them off on your taxes thus saving you tons of money in taxes over years and years. So thousands and thousands.
And what I find is that the average household income that has a home-based business on top of what they’re currently doing, they’re saving between $4000 and $8000 a year. So I hope you have an amazing day and you get back to more relaxing and less taxing.