Tax LOOPHOLES The Rich Don’t Want You To Know -Robert Kiyosaki

Tax LOOPHOLES The Rich Don’t Want You To Know -Robert Kiyosaki

(upbeat banjo music) (air whooshing) – Hey, guys, welcome to “Advanced Lessons in Millennial Money,” featuring Robert Kiyosaki. I’m Alexandra Gonzalez. In this two-part episode,
I got a chance to speak with Robert and his tax
advisor, Tom Wheelwright. Tom has been a CPA for 34 years, and has an extensive background
in accounting and education. We’re lucky that he joined us for this important lesson on taxes. To all of our subscribers, keep an eye out for the release of part two,
coming in the next few weeks. And if you aren’t a subscriber, click the button now to get notified. One of the things Robert and many of the wealthy talk about
is how they don’t pay taxes, and I asked Robert and Tom
to clarify what they mean. (air whooshing) I want to know, and I’m sure
all our viewers wanna know, how is it that you guys don’t pay taxes? – Legally. – Legally. – You can always do it as a crook, but we don’t want you
to do that, right, Tom? – That’s right. – So the question is, how
do the rich not pay taxes? Right? It’s a multi-step process. Let’s talk about this one
first, to keep it small, is here you have, you go to school, get a job, you become an employee, but you learn nothing about taxes. And then you become a little entrepreneur, you start your little
falafel shop business or whatever you start, right? So that you’re self-employed,
small business. And then you have big business, 500 employees or more, or I for investor. So, Tom, how much tax do employees pay? – Well, typically, if
they’re making a good salary, and this is, by the way, the
same rates around the world, typically it’s gonna be about 40%. – 40%. And after the Trump tax
cut, did that change much? – Not much, it didn’t. – So if you’re a, “Oh,
I’m gonna start my own “little business, I’m gonna
start my little pizza shop, “or my coffee shop,” how
much do these guys pay? – Well, now it goes up,
because you’re paying both your share of the taxes
plus the employer share of the taxes, because
you’ve got both sides. So now it goes up as high as 60%. – So when you hear a young
person, an old guy like me, saying, “I’m gonna start my own business,” they don’t think about taxes, do they? – No, and in fact, this is the place where people get in trouble. Because over here, the money’s being taken out of your paycheck. But here, you’re
responsible for your taxes, and so what happens is that you go, let’s say you’re successful
with your pizza shop, right? All of a sudden, tax time comes around, “Oh no, I’ve spent all my money, “and I don’t have money to pay the taxes.” And people go out of
business real fast here. – Well, it is surprising,
’cause a lot of the millennials do wanna start up their own
small little business, right? And what they’re not
aware of is that they’re gonna be in the 60% tax bracket. – Because taxes are your
single largest expense. So if you’re gonna
start your own business, you gotta be aware of taxes here. Now, big business, that’s
500 employees or more, how much do they pay? – Typically, around the world, about 20%. – Now, why is it that
big-business people pay less than small business? – Well, basically, the government wants us to do certain things, and
they’ll give us incentives if we do them. And what they want out
of a big business is, they want employment. So they wanna create employment, because that creates
stability in the country– – Jobs. – Jobs, right? And so, the more jobs you create, actually the more tax benefit you get. – Well, look at Amazon right now. They’re looking at moving their company. How many tax benefits do
you think they’re getting? – Oh my heavens, they pay
very, very little tax, Amazon does, and they pay,
you know, you’re talking about all those different kinds of taxes? Not only do they pay
very little income tax, but they’re also paying
very little sales tax, and unemployment taxes,
and all those others, because they’re getting benefits from multiple types of government, the federal government,
the state government, the city government, the county government.
– Is that how Elon Musk started his battery factory in Nevada? – Well, yeah, I mean, Elon Musk, he gets huge research and
development tax benefits, which, by the way, that’s a tax benefit that is available in most
countries more than the U.S. – Right. So if you’re gonna stay small, I mean, it’s a good place to start, but you gotta really wanna come over here eventually. And then the professional investors. See, these guys are passive. These guys invest in
stocks, bonds, mutual funds, they save money, they’re passive guys. They pay the highest taxes. But how much does a professional investor, like “Shark Tank,” how
much do these guys pay? – So they can pay as little as 0%. – Right. – They can actually completely
eliminate their tax. (air whooshing) – One of the biggest misconceptions out there regarding
taxes is that tax breaks are only given to the wealthy. Robert had a great answer for this. Let’s take a listen. (air whooshing) Well, I think this is actually
a very interesting topic for our audience because of the fact that a lot of the people complain
that the only people who get tax benefits are the wealthy. And I think it’s also
because, like you said, it’s a series of incentives of what the government wants you to do. – And that’s the mistake,
it’s not the wealthy. You see a lot of wealthy people here. You know, if I, let’s say
I’m a CEO of a company, I make a million dollars a
year, I still pay 40% tax. And I could be a doctor or a lawyer, and I could make a million dollars a year, and still pay 60% in tax. See, it’s not what you
do, it’s your mindset in the quadrant here. So this is my Poor Dad,
this is my Rich Dad. So which one do you wanna be, you know? (air whooshing) – In this clip, Tom goes on to explain the difference between
the rich and the poor. (air whooshing) – The difference between
the rich and the poor is, how do they use taxes to their benefit? You look over here, you
ask about the big business, well, that’s employment, right? But investors, why do professional
investors get benefits? Well, because the
government wants housing, they want commercial projects built, they want energy done,
that’s Elon Musk, right? – They want food. – They want technology,
they want food, agriculture. So all of those things
that the government’s trying to incentivize people
to put their money someplace, they really want them to put it over here. And if you put it over here, these are pretty much consumers, these are consuming the money, and the government, what they really want is they want all the producers over here. – Yeah, I had a friend who started off, he never went to school, but
I think his grandma gave him 10 chickens, and they were
producing 10 eggs a day. And by the time he
retired, he was producing 10 million eggs a day. Did he get tax breaks for that? – Enormous tax breaks, because
every dollar you reinvest in your business, you
get a tax break for it. – Yeah. (air whooshing) – Robert then goes into another
lesson from his Rich Dad. And for all of you entrepreneurs, you might wanna pay attention. Let’s see what he said. (air whooshing) – So the other thing that
my Rich Dad taught me, which is this here, is since
I was not a very good student in school, he just says,
“Remember the McDonald’s formula.” So the reason I talk about this McDonald’s formula, this is Ray Kroc. If you saw the movie “The Founder,” he says it right in the movie. The purpose of McDonald’s
business is not hamburgers. Everybody thinks it’s hamburgers. McDonald’s business is to buy real estate. You see, a hamburger stand
produces so much income, it can afford the real
estate, where the average guy, you know, graduated from
school with their MBA or Ph.D., they go, “Well, how come I can’t do that?” Well, ’cause you’re over here. So McDonald’s did this here,
so they had their business, which is hamburgers,
bought their real estate. So today, McDonald’s owns more real estate than the Catholic Church. Does the Catholic Church
get tax breaks, too? – (laughs) Enormous tax breaks. They don’t pay tax on any of their income. – Yeah, so McDonald’s competed
with the Catholic Church by just building hamburgers
and buying real estate. Any comments on that, Tom? – Well, the great thing is, you don’t have to be
huge to do this, right? I mean, you can do it with your startup business, your
online business, right? You guys are doing all
those online businesses– – You could do it from here to here. – The tax law is ultimately fair, because you don’t have to be huge in order to take advantage. What you do have to have, though, is the financial
education, because you have to behave like these people. If you do what these people do, you get the same tax
benefits that they get. The challenge that most people have here is that they don’t have
any financial education, and so they do everything
as if they were up here, and that just gets them in trouble. Because these guys, that’s not
where the tax law is built. The tax law is built for
these guys over here. (air whooshing) – Next, Robert talks about
using debt to your advantage. Most people think all debt is bad. But little do they know, it
offers a huge tax benefit. Tom and Robert explain. (air whooshing) – So I’m gonna throw you one more thing. Again, this takes financial education. The number one asset I can use is debt. So the reason I like this place here, and get this, so let’s say I have, this is the McDonald’s
hamburger formula here. So I have $1 from my hamburger business, plus $5 of debt, so that gives me $6. What does that mean to you, Tom? – Well, it means you’re not
gonna pay very much tax, and it also means you’re
gonna make a lot more money. Because what debt does is it
accelerates on the plus side if you know what you’re doing, if you got the financial education, right? On the plus side, it
accelerates both your income, but it also accelerates your tax benefit. – Yeah, so this is my formula here, it’s the McDonald’s formula, except, let’s say I have Rich Dad Company, I have more than Rich Dad Company, but Kim and I buy real
estate with Ken McElroy and with Tom’s guy, who
knows we do all this. Because we can leverage up with debt, but good debt, debt that
we don’t have to pay for. These guys have bad
debt, like their house, their car payments, student
loans, really horrible debt. But there’s good debt on this side. But you can do the same thing
this way, if you want to. (air whooshing) – Thank you guys so much for
joining us on this video, and I hope you guys loved
it just as much as I did. And if you did, give it a thumbs-up, comment if you have any questions, and subscribe to our channel. (speaks in foreign language) (upbeat banjo music) (beep) Oh my gosh, I almost fell asleep, but that was a very long (laughs) clip. (crew members laugh) (beep) Oh my gosh, I’m so awake,
that was a really (laughs) (crew members laugh) (beep) Thank you guys
so much for joining us on this episode, I spit. (laughs) (crew members laugh) (Alexandra laughs) (beep) The most important lesson of all– (crew member murmurs and laughs) (laughs) Whoa! (air whooshes)

100 thoughts on “Tax LOOPHOLES The Rich Don’t Want You To Know -Robert Kiyosaki

  1. So… how does he do it?! I want his examples and not how McDonald’s is doing it. If I purchase an apartment t complex that houses 8-10 different families, would that put me in the I category?

  2. So just go from a small business to employing 500 people, sounds like the gov doesn't want an in between

  3. RV park $$$$

  4. So your saying I’m going to pay 60% in taxes driving for Uber?

  5. Set up three trust accounts and pay no taxes even if you have no employees.

  6. the top 20% of earners pay over 80% of the taxes (Pareto principle strikes again!). so, yeah … no secret loopholes that the rich use to avoid paying taxes. when you occasionally hear about big companies like Amazon etc paying no taxes it's not a 'loophole' it's just a scaled-up version of the same things anyone can do (a business claims a loss carryforward from an unprofitable year, you can claim depreciation on a new roof for the next 20 years).

  7. Preface: If you want to learn buy this book.

    Me: downloads free ripped pdf file off google 😂

  8. U r beautiful

  9. Damn alexandra is fine as hell im trying to get that number

  10. Why do hispanics, not spanish btw, insist on over pronouncing their fake latino names? Italians are the only true latinos. You know why? They dont want to assimilate and be americans. If the ppl. Coming here thru mexico illegally spoke german or gaelic, the "latinos" couldnt care less. Thats like me identifying with england on the sole reason i speak english. Retarded. That means stupid for all of you retards.

  11. Fukk taxes. You are not getting my money.

  12. So you have to buy a property and add a business to it to get a tax break?

  13. Ok, can anyone answer this? Both my wife and I work Job's (Yes we are Losers) but we also have a rental property with good solid rental with minimal mortgage. When we did our taxes for 2018 our tax preparer stated we could not deduct the interest paid on the loan because we made to much at our Jobs? Could he be misinformed?

  14. I might be wrong but I have only one problem with the video: You and your business are separate legal entities. Even if your business is taxed at 10% it will only benefit your business but not you. If you withdraw money from your business, you will still pay the same tax you would pay if you were working as an employee..

  15. These guys are typical american greedy fucking scumb that will be going straight to fucking hell!

  16. Rob & Tom mentioned twice that we can move from S to I directly…How does they suggest to do it? maybe a next clip, please?

  17. All you guys do is speak in parables. Circle around material and never speak on the how. Very disgusting

  18. All wretch and no vomit. Same story with this guy.

  19. Very interesting.

  20. So no solidarity is GOOD? Dont think so

  21. This is terrible tax advice. Speak to a CPA for actual tax advice.

  22. Is it applicable to india

  23. Lol. Good video once again.

  24. Great info. I would keep the caps off the magic markers though. 😃

  25. All fast-food chains are in the real estate business

  26. Employees 2019 37% if single baking over 510,300

  27. Alejandra, ¿cómo estás tú llevando a la práctica estos consejos? Ayudaría mucho escuchar tu historia. Robert está algo "inalcanzable" para el promedio de las personas, sobre todo millenials, aunque todo es posible. ¿Qué tipo de actividad profesional recomendarías tú a chicos de tu edad? ¿Qué tipo de negocio tienes a la vez que trabajas en la empresa de Robert? ¿Cuál es tu estrategia para salirte de la círculo vicioso y empezar a invertir? ¿Cómo vas a aumentando tus posibilidades de conseguir préstamos para invertir en bienes raíces y seguir haciendo crecer tu negocio?

  28. Catholic Churches don’t get taxed 🧐

  29. I don't like the girl talking stupid shit all re time just play the dam video….she talks like she's fucking stupid or talks to a lot of stupid people all the time….

  30. Tax loopholes are great, the rich live in a different world. They don’t have to deal with the consequences.
    Meanwhile middle class neighborhood roads and bridges collapse, schools are being shot up and underfunded, police resources are diverted to protecting rich neighborhoods, Medicare is cut leaving seniors to die in decaying hospital beds.

    It’s great ripping off your fellow man! Yay me!!

  31. Bunch of BS … Misleading title..

    You are in the "Rich Dad" business..

    Small business doesn't pay 60%… Big bz are C corps so they are double tax.

    Investors 0% … Come on… Depreciation recapture will bite you when you sell RE

  32. If you have your own home business it's much easier to claim just about everything rent cable utilities, car etc

  33. I want to hire Robert to speak at my London event?

  34. He said do what the rich do and you'd pay no taxes but what exactly are the rich doing to make them not pay their taxes ? I never got the answer, can someone break this down a little more for me. Well us!

  35. This video gives no useful information at all

  36. How? Keep rolling over your profits into debt generating income.

  37. Another reason why we should have a flat 15% tax for everyone , personal or small business , big business , corporation… would be fair to everybody and more than enough money for government to do thier job…..and it's simple , no need to hire book keepers or accountants

  38. This video does not explain any tax loopholes or stragities …'s just a vague concept…..need more explanation

  39. I am so glad I came across this channel

  40. There are many missing gaps in what this video explains.

  41. So vague that it's frustrating 😂

  42. Thanks very much more than this 👌👌👌👌👌👌👌👌👌👌👌👌🌷🌷🌷🌷🌷🌷🌷🌷🌷🌷🌷🌷🌹🌹🌹🌹🌹🌹🌹🌹🌹🌹🌹🌹

  43. "if you have the right financial education" ….


  44. Haters make you famous…keep up the great work Alexandra! The videos are a little cringey at times haha but just keep progressing. Sending love and blessings ✌

  45. dave ramsey debit
    remember protect credit
    new york times read it

  46. This video addresses only how large companies get tax breaks.
    There is no information here on how to help an average person.
    Thus this video is useless for most viewers.
    Tnis vid can be likened to other investment videos.
    For example take the 75 million dollars that you already have put it in the bank and just live off the interest. Oh! and don't forget to buy some gold with your interest gains and the rest of the money you can live off. I have just given the world my personal wealth strategy.
    Maybe I should wright a book. Lol!

  47. How do we "Behave" like the big guys? Starting from a small business

  48. Ok, I can now pay 0% tax…go to jail.

  49. This girl can hardly speak

  50. This girl is so unnecessary and annoying. This would be a lot better without cutting in n out

  51. The way they present the business owner filing as a sole proprietorship, which is the worst tax structure generally would only result in up 37% average federal tax rate under the tax cut jobs act. That would be including the 15.3% self employment taxes and over a million in income.

  52. Am I the only one lost on how to apply these loop holes to employed or self employed situations? 11 minutes of something that could have been said in 30 seconds

  53. This sounds like a Fucking video for babies

  54. uhahah! Falafel shop => entrepreneur. I bet my home town had about 100 falafel entrepreneurs then…

  55. The U.S. government subsidizes large corporations to create jobs: in China and India.

  56. Just remember: every time u make $, in the eyes of IRS u getta pay tax; he said put his $1M from biz to buy $5M or $6M biz can pay 0% tax, NOT true; unless that RENTAL biz $5M apartment LOSE money to offset his Bussinss $1M. But smart investors are in biz to make $ not lose $ even use 27.5 yrs depreciation & mortgage interest write off. The bankers or RE investors friend said U REPORT MORE TAX when R.E. $5M apt generate more income and REPORT MORE TAX IS GOOD AS LONG AS U HAVE more income, IRS only take 20% or 25% or so Trump makes C corp only tax max 21%, u keep ~80%, IT'S GOOD and ok and plus u need to report bigger TAXABLE Income and report big tax when U TRY TO BORROW $ from the bank or investors b/c it shows u can afford to borrow $ able to pay back. Pay fair tax is okay, don't listen blindly to believe R.E. is BEST BUSINESS AND CAN AVOID TAX, my white rich friends move to TX said HATE CA tax him too much and RENTAL BUSINESS IS 1 OF THE WORST BUSINESS THERE IS, all laws like Rent Control, E.C laws and IRS tax laws (takes 27.5yrs to depr) are ALL WRITTEN AGAINST R.E., any other biz is better than R.E., don't listen to those BIGGER Pocket or CA REAL ESTATE YOUTUBE fake gurus promote BUY R.E. THE BEST biz b/c they make MORE $ FROM YOUTUBE fake gurus than their REAL RENTAL INCOME as Rich Dad said "fake teacher, fake guru, fake libtrads bs politicians (b/c MOST OF THEM ARE WAGE W-2 earners NOT business owners; driving up min wage+overhead costs IS ANTI-BUSINESS which causes ALL JOBS SHIFT FROM CA TO TX OR LEAVING USA TO CHINA/INDIA b/c why would a biz owner/boss WANT TO HIRE A CA DUMMIFORNIA $15/HR vs $10/hr in TX or $5/hr in CHINA or India or Vietnam – shift jobs to OCEANSEA MEANS MAKE China Great Again Not MAGA as Trump bushing the Traitor Libs are too busy make laws HELP OTHER COUNTRIES or illegals AT THE COST OF LEGAL citizens-MAKE USA Great Again NOT illegals or LGBTQ or lazy, dummies, druggies Agreat again. U GETTA LOVE YOUR OWN COUNTRY AND PRIORITY USA AND I'm an American Chinese legal LL or investor in SF own pice of USA dream house now rent it back to the white ENTITLED tenants who enjoy R.C. 42 yrs pay 10% OF FAIR MARKET RENTS and blame/hate 'Greedy LL causes the rent is damn high', they fail to know the basic econ is rent is driven by FAIR MKT demand decides the rental price=deal with angry Libtards tenants are NOT BEST R.E BIZ:)" LOL. Just fast saying, have a nice weekend + fun day:)!

  57. Thanks for this knowlege.

  58. So are long-term investments in stocks and bonds (like Warren Buffett) bring us to the 'investor quadrant'? What's Buffett doing differently from people in the 'E' and 'S' quadrant?

  59. Do the honourable thing. So you want to drive on roads built with others peoples money? So is cheating good? greed good?, lying good? Would you encourage your children to lie , to cheat etc? No wonder our society is losing its moral compass.

  60. Excellent Video!!!

  61. What the F***k does the government do to accumulate 40%-60% tax and then middle class and lower class act entitled to take more from the rich like they don’t work for their money? So aggravating that is highway robbery and I am so grateful for the informative videos you share. It gives people important information to be better plan their financial future.

  62. How do i take money with out taking a paycheck or salary and disbursements? Using my cashflow like do i use a s corp ?

  63. Robert says there are no taxes imposed on debt, but then, interest is charged on debts, so isn't then more or less the same?

  64. Thats modern slavery.Basically you go to school and get trained to become a slave. That explains the recess and punishment for tardiness and absences in school and it is 5 days a week like the real world of the modern slaves. Brilliant. I owe, I owe its off to work I go!

  65. he's been repeating this 4 quadrants over and over again. Everyone wants to get into the B quadrant to pay no taxes. but not every business succeed or is viable. even you go into business with someone elses money, chances are still big that the business will bust. so what's his view on that? it is ok to go bankrupt using other peoples money as long as you are not liable for it? Beside, its not like the B people DON"T pay taxes, they take the risks, create jobs, employ people, so their EMPLOYEES still pay taxes, even though their income tax is lower. So in total they STIL pay taxes, even Amazon does. Also, the ONLY business he knows is the real estate business. that is a business formula that existed since the begin of the civilization. he does not know how to innovate, or any technological stuff, science and all that. While he's good explaining the tax differences and teach people to change their mindset, he's by no mean a business guru.

  66. This is so amazing….where can we learn more about this? Is there a course that goes more in detail?

  67. If i keep investing, how do i eat, buy home and get clothes?

  68. Thanks for one of the secret how rich people invest.more interested to here more .I read book 5 yrs back.keen to know more.

  69. Is this girl just green screened onto these videos ? I feel like they never entertain her answers

  70. Maybe just become a CPA? Or are they ignorant too?

  71. I love this and the fact that she’s Latina! Hola hermana 😀

  72. The part at 9:12 is not very well explained. Where is the 6 dollars debt coming from in that equation?

  73. I own and work at my restaurant….I don't pay 60%. I'm under that for sure. Maybe 30%…maybe slightly less. Don't take the numbers for fact…listen to what he is trying to teach. Stop working for a paycheck.

  74. This does make sense, when you re-invest you receive tax breaks.

  75. please get rid of this girl… annoying as fuck

  76. Tax and debts can be used to make more money however learning how to use these two tactics can be tricky!

  77. The Gordita was a nice touch. Trump 2020

  78. No pay any tax let's not have our bins emptied or heath service or welfare etc etc

  79. And everyone here will be back to there job tomorrow as an employee lol

  80. This lady doesn't speak English at home… therefore struggles with it at work

  81. I am in love….thank you so much for this.

  82. Looks like Tom really stayed in school

  83. All you need is an accountant with imagination

  84. How to get good debt?

  85. lose the girl she really doesn't make the content any better

  86. Why does this remind me of the sesame st of money and that girl is Elmo?

  87. Tax havens. Knowledge is the key to maximizing gains using OPM.

  88. dear poor people rich man s advice is only for rich people
    he figurativly is saying yes you bild your own rocket and fly to the moon

  89. You know, if you think about it, TAXES AREN'T NECESSARY AT ALL. We can let companies build roads, and just make sure to regulate prices for driving on them, we can let companies run national parks, we can let people themselves run almost if not everything. We just need regulation to keep them all in check, but not taxes. Government claims it needs to exist in order to support these things, but government does not need to take taxes. TAXES ARE A SCAM. Did you know that the IRS isn't even a domestic organization? Part of me even wants to say that Government itself is an unnecessary illusion.

  90. What an arrogant creature you are Robert. Obviously, you are profiting soley on the platform of "this is the priblem" and yet you NEVER provide answers. Additionally, you apparently have a fascination with brainless and pointless young females with 0 to contribute to the program. I have unscribed and reget any time I lost to your nonsense.

  91. Awesome video🙏😊

  92. This GUY is such LOW LIFE LEECH !! Just like the wall street, instead of changing the system ,help the system is his Motto…

  93. I guess I should use my first home as a investing and tax strategy…

  94. I want to learn from this but my brain's not soak up information

  95. Please just let the vid play. It doesnt need the commentary.

  96. So he said what Baghdad was home and cars what is good day what's the example for good debt

  97. Elon Musk built his business lol, woteva.

  98. So that's why the government give tax breaks to the big business so Big business creates more 40% and 60% tax payers for the government and gets the money back. the Farming of taxpayers… system has to change

  99. This seems very interesting butti son t get the debt thing form Robert. Howard do i go in debt? How can be good? Someone would be after you trying ti get you to pay the debt! 🤷‍♂️

  100. I want to be a automotive engineer and designer

    I’m just using this type of information for when I rebel away and start my own company. My company may be small but we will think big.

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