Wealth Formula Podcast

Ask any tax professional about the tax code and they will tell you that it is 90 percent gray. Then why is everyone being so conservative? Well, professionals have a terrible fear of being audited. They have a terrible fear of breaking the law. I get it. No one wants that kind of stress in their life. However, let’s talk for a second about how the government creates the tax code and what it is meant to do. Of course it is meant to create revenue for the government to spend on important things like roads and schools. That’s obvious. But what is not that obvious is that the government uses the tax code to incentivize investments that it believes are in the best interests of our country. Let’s take for example the huge tax benefits to investing in oil exploration. Whatever the stated cause for our involvement in various Middle East conflicts, it has always come down to our oil interests. It is the reason we call Saudi Arabia our ally despite the fact that they are, more than any other country in the world, to bl