Avoiding Taxes Is NOT Worth It

Summary

• Don't waste your time trying to avoid taxes through shady means; 90% of the strategies out there are illegal and can be unraveled by the authorities.
• Be wary of tax avoidance schemes that seem too good to be true because they usually are.
• Focus your energy on earning more rather than saving a small percentage on taxes through complicated and potentially illegal methods.
• Even legitimate tax breaks, like moving to Puerto Rico for a 4% tax rate, often have hidden costs that can negate the savings.
• Consider the trade-offs such as sacrificing time and convenience for a potentially small tax saving. Time spent on convoluted tax strategies could be better used to increase your income.
• Remember, efficient earnings usually outweigh the benefits gained from complex tax avoidance techniques.

Video

How To Take Action

I would suggest not getting tangled up in tricky tax avoidance stuff. A lot of those tactics are not on the level, and even the ones that are okay are a big hassle. Instead, put that effort into making more money. It's usually a better use of your time.

Here's what you should do:

• First, don't look for shortcuts when it comes to taxes. Focus on the straight path and keep it simple.
• If you're thinking about a wild tax break, like moving to Puerto Rico for lower taxes, make sure you look at all the angles. Check for any hidden costs or things you might not have thought about.
• Decide if it's really worth the trade. Could you use the same time to earn extra cash instead of saving just a little on taxes? It's often smarter to make more money rather than save a tiny bit by cutting corners.
• Rethink your priorities. Your time is precious. Investing it in growing your income is likely to give you more rewards than getting tangled in complex tax schemes.

Remember, the most straightforward and honest approach not only keeps you out of trouble but can also be the most profitable in the long run.

Quotes by Alex Hormozi

"90% of what's out there to avoid taxes is complete swamp plan"

– Alex Hormozi

"It's literally illegal and it will eventually become unwound"

– Alex Hormozi

"The 10% it takes you so long to sift through the 90 that you might as well take that time and just make more money"

– Alex Hormozi

"I had a friend who even was flying back and forth every single weekend to Puerto Rico so that he could get the 4% tax rate"

– Alex Hormozi

"You think if you didn't take 104 flights a year that you'd be able to take all that time and make up the 30% difference"

– Alex Hormozi

Full Transcript

avoid taxes not worth it 90% of what's out there to avoid taxes is complete swamp plan it's literally illegal and it will eventually become Unwound and the 10% it takes you so long to sift through the 90 that he might as well take that time and just make more money I had a friend who even was flying back and forth every single weekend to Puerto Rico so that he could get the 4% tax rate but the more he found out it's actually closer to 18% because there's a cost adjustment that has to happen and so now he was doing it for a very small percentage so I just asked him one day you think if you didn't take 104 flights a year that you'd be able to take all that time and make up the 30% difference and not have to deal with all of that in the meantime he was like yeah and so he ended up moving back and making more money