Taxes steal your life away. Income tax, sales tax, property tax, carbon tax, capital gain tax, interest tax, federal tax, provincial tax, and so on. Some researchers indicate that 25~30% of the wealth is eaten by taxes. Assume the average age of a person in a developed country is 80-year old, the person has to work about 20 years to pay off taxes. Therefore, it is necessary to find a way to protect your wealth.
To protect wealth, most rich people pay little or no tax. Keep in mind, government's responsibility is to improve economy, promote society, provide a good environment for students, reduce patients' medical expenses, reduce workers' public transit costs, job hunting, business startup, investment, market development, high tech innovation, etc. To achieve these purposes, the tax law should benefit the above. Therefore, some incomes related are tax deductible.
To read and understand your country's tax law is a good start to protect your wealth. The following books are worth reading.
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