When you think about billionaires and taxes, you might have some preconceived notions. You may think that there is only one way to run a business and profit, or that billionaires are self-made. Here, we go through three of the most common myths regarding billionaires and taxes – and break them down for you.
What Companies/Billionaires are Actually Worth
A few years ago, you might have heard that Apple was a trillion-dollar company. Not long after that, you might have heard the update – that it is now a two-trillion-dollar company. Most people would immediately think that Apple managed to double its wealth in that short amount of time, and might have started wondering how they could do the same. However, this jump in valuation had little to do with actual money, or wealth as a whole. Instead, it had to do with stocks. Stocks can be a fickle thing. When it comes to stocks and the stock market, you are not dealing with tangible assets. Instead, you have to play the game of the market, and that is something that you should consider after some solid stock market training.
You Cannot Profit by Paying Your Employees $15 an Hour
It might be true that some companies cannot afford to pay their employees $15 an hour, but most companies have started paying even their lowest-level employees at least that. In the past decade, $15/hour has gone from being a lofty goal or way to redistribute a company’s finances fairly: it’s simply become how much labor costs. After all, you cannot expect to retain your workforce if you are not paying them adequately. If the basic rate these days is $15 an hour and you are paying your employees less than that while expectingthem to perform intensive tasks, you will not have those employees for long. With a revolving workforce, you cannot expect your company to run at its best.
Among the companies that pay $15 an hour is Amazon, which is notorious for its unfair treatment of employees. And there are many other big companies whose paychecks do not cover the basics of their employees. What happens then? Taxpayers have to foot the bill. Employees are forced to go on strike just so that they are paid a living wage and are fairly compensated for their labor. Nothing runs the way it should. If even the tight-fisted Amazon pays their employees $15 an hour, and even that $15 is not sustainable, you may want to consider how much you are paying your employees. You may want to penny-pinch and pay them the lowest that you can legally get away with, but whatever profits you make from that will not last long.
Billionaires are Self-Made
Elon Musk, Kylie Jenner, and Mark Zuckerburg. What do all of these people have in common? They are rolling in the billions, for one. Another thing that they all share is that they were born into wealth. Billionaire and Under-30 lists are populated with those who have descended from wealth. With that said, learning how to protect your assets and manage your estate can ensure that you, too, have something to leave the next generation. Or, if you prefer to leave a different and lasting legacy, consider what many other high-network individuals are doing nowadays, and leave that money to charity or development.
