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What the Rich Teach Their Kids about Money--that the Poor and the Middle Class Do Not!
by Robert Kiyosaki, Sharon L. Lechter
As this cycle of growing government spending continued, the demand for money increased and the "Tax the rich" idea was now being adjusted to include lower-income levels, down to the very people who voted it in, the poor and the middle class.
True capitalists used their financial knowledge to simply find a way to escape. They headed back to the protection of a corporation. A corporation protects the rich. But what many people who have never formed a corporation do not know is that a corporation is not really a thing. A corporation is merely a file folder with some legal documents in it, sitting in some attorney's office registered with a state government agency. It's not a big building with the name of the corporation on it. It's not a factory or a group of people. A corporation is merely a legal document that creates a legal body without a soul. The wealth of the rich was once again protected. Once again, the use of corporations became popular once the permanent income laws were passed--because the income-tax rate of the corporation was less than the individual income-tax rates. in addition, as described earlier, certain expenses could be paid with pre-tax dollars within the corporation....
Copyright © 1997, 1998 by Robert T. Kiyosaki and Sharon L. Lechter
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