I believe in every citizen supporting the country by paying their fair share of taxes. You will always have to pay taxes. The alternative is paying severe penalties. Think Al Capone. Think prison.

But, the US government created a tax code that encourages growth. It encourages people to live the American dream. The American dream is to have your own business. And if you understand that tax code, you will understand how the government is telling you to start a business.

The more real and value added businesses we have in this country, the more it adds to the bottom line of our economy. I believe that we can save our economy is we can get enough of us to start a value added small business. Small business is the back bone of our country and, I believe, its salvation.

If we can start a business, a real business, it moves money through the system. It stimulates the financial systems. And that is a good thing.

The US government really has two tax systems; employee and business.

Employees pay taxes on gross earnings. What is left over is used to pay for everything else.

As a business, you are taxed on gross earnings MINUS business expenses. This is huge!

Examples of business expenses are:

• Communications
• Phone
• Internet
• Fax
• Computers and related equipment
• Office equipment and furniture
• Travel for business purposes
• Food
• Lodging
• Airfare
• Mileage
• Education related to the business
• Seminars
• Books
• DVD’s
• CD’s
• Healthcare

In fact, there are too many expenses to list.

I STRONGLY encourage you to enlist the services of a competent CPA and attorney when launching and running your business. I am NOT a tax or legal professional but I do know that the cost of their services can reduce your taxable income. And their services can be tax deductible expenses too!

If you haven’t noticed, many of the things on the list are things you are already paying for, with AFTER TAX dollars.

Tomorrow I’ll share some more on this very inportant topic.

Make sure you come back!