It is true! The tax laws are written to reduce your taxes, not to increase them. In the U.S., for example, there are over 5,800 pages of tax law. Only about 30 pages are devoted to raising taxes. This leaves over 5,700 pages that are devoted entirely to reducing your taxes.
This means 99.5% of the tax code exists solely for the purpose of saving you money.
I even go as far to say it is actually your patriotic duty to reduce your taxes by all legal means. Many people think I am kidding when I share this, but I am not!
Think about it this way. If 99.5% of the tax law is written to help you reduce your taxes, then the government must really want you to do just that. Otherwise, why would they enact so much legislation aimed at helping you do so?
All of the so-called complexity of the tax law is really just aimed at reducing your taxes, not increasing them.
When I share this concept with others, they usually find it interesting, which is great - but I really want them (and you) to think about this concept and how to apply it to their personal situation.
Once you truly believe that the government wants you to reduce your taxes, you will realize that you have the right to reduce your taxes every minute of every day. All you have to do is learn the rules.
Now, I enjoy reading the tax code and learning the tax rules. Most people don't find this enjoyable though. This is where your wealth team can help. The tax rules can be easy to understand, if you have the right tax advisor on your team.
Here are a few cautions to consider when you are identifying the right tax advisor for your wealth team.
Just because someone is a licensed CPA, or licensed accountant, does not mean they understand taxes. Some accountants never deal with taxes at all.
Just because someone prepares tax returns does not mean it is safe to assume they understand the tax law well enough to make the rules understandable.
It is key to have a tax advisor on your team who understands what it is the government wants you to do in order to reduce your taxes and, more importantly, is able to put those rules into terms you understand.