Here’s How to Deal with Income Taxes

Want to make a bunch of money?

Leave states that charge you income tax.

For example, California charges over 13% income tax.

Back in 2012, I moved from California to Florida.

By making this move, I saved $1.3 million in 2013.

I was able to rent a nice place on the beach for $25,000 a month, which meant I paid $300,000 in rent back in 2013.

In fact, just the money I saved in income taxes by moving to Florida in that FIRST year covered my 25K monthly rent for 4 YEARS.  

Think about that—I paid 4 years of rent on the beach just to leave. 

If you live in a place like California or New York, you’re literally throwing money away.

Check this out:

This is why many high-income New Yorkers are now moving to Florida.

Why wouldn’t they?

Florida has no state and local income taxes, has a budget surplus, and is booming.

New York, meanwhile, is in debt while they are taking over 12% of your money.

Here’s the question every New Yorker should be asking:

Why should New York have such high state and local income taxes while states like Florida get by just fine without any state income tax?

The Governor of New York, Andrew Cuomo, recently said that the state is missing $2.3 billion in expected tax revenues from December and January.

This is because the rich realize that they need to leave New York with their outrageous income taxes.

“Tax the rich, tax the rich, tax the rich. We did. Now, God forbid the rich leave.” —Governor Cuomo

New York’s Democrat Congresswoman Alexandria Ocasio-Cortez isn’t happy with just the state’s 12% income tax rates, she wants federal income tax at 70%, which would likely cause top earners not only to flee New York but flee the United States.

Look, I moved to Florida for tax reasons and it’s saved me millions of dollars I could pour back into my businesses.

Over the past 6 years, I could literally buy a jet just by leaving California. So, why should I have stayed?

Florida has palm trees and an ocean as well.

All that said, let me tell you something— guys like Warren Buffett won’t care even if income taxes go to 70%.

Why?

Because if you’re wealthy, you have multiple flows of income and earned income is only one flow.

Income tax is tax taken from earned income, which is the worst kind of income you can have.

Nobody gets super wealthy from earned income.

In fact, my income looks like this:

1. Salary from my job                      $1
2. Profit Income (business)              Millions
3. Rental Income                              Millions
4. Capital Gains Income                   Millions
5. Royalty Income                             Millions
6. Commission                                 $250,000

As you can see, I just take one single $1 as salary.

Likewise, guys like Jeff Bezos and all the super-rich in any industry, they don’t care if you raise income taxes—because they don’t pay any! 

So, you have a situation where the super-rich aren’t paying at all and the rich are fleeing so they can stop paying.

That means you, the middle class, and people making less than 100K salary, are stuck paying 12% or 13% of your income in a state like New York or California.

Why are you taking it?

Leave!

And start doing something to create more income, like getting on Cardone University, the #1 business training platform in the world.

Because your goal should actually be to make so much more money in the coming year that you will owe the IRS a big check.

Make no mistake about it, you should not be excited to get a refund—because let's face it, that only means you make no money.

This is how you deal with income taxes!

Be Great,

GC

Grant Cardone is a New York Times bestselling author, the #1 sales trainer in the world, and an internationally renowned speaker on leadership, real estate investing, entrepreneurship, social media, and finance. His 5 privately held companies have annual revenues exceeding $100 million. Forbes recently named Mr. Cardone #1 of the "25 Marketing Influencers to Watch". Grant’s straight-shooting viewpoints on the economy, the middle class, and business have made him a valuable resource for media seeking commentary and insights on real topics that matter. He regularly appears on Fox News, Fox Business, and MSNBC, and writes for Forbes, Success Magazine, Business Insider, CNBC, and Entrepreneur. He urges his followers and clients to make success their duty, responsibility, and obligation. He currently resides in South Florida with his wife and two daughters.