4 Things that Make People Poor: #4- Taxes

In today world, 2 things are guarantee when we are born - death and taxes. Taxes is the single largest expenses in our life. We are taxed when we spend, save, work, and die. For most people who are in the employee or self-employed quadrant, you have no control to your taxes. Tax is the first expense in the employee expenses column. The government will make sure that they get their shares first before you do. In most country, the more you earned, the higher percentage you are taxed. This will very difficult for most people to become rich. In America, high paid employees who are on the highest tax bracket will pay 50% in taxes of their gross income. Malaysia is about 30% to 40% range. Korea at about 35% to 45% range. This simply means, the higher your paid, you need to work almost 2 months in order to get full pay of 1 month gross salary. This single rule will make most of people who are in the employee quadrant stay poor.