What is up, Childish Investors?? It's that time of the week again, where we enter the business world—curate everything—and bring the business world to you.
The moment of truth… People can no longer bear the wait for the election results. And a funny bus incident reminded us of how much was at stake for the whole country!
So… Are you ready to RUUUMBLE?
🥊 Main Event of the Week
Only a couple of hours left before America either votes its way to 4 years of doom or glory…
Whoever gets elected today will have a greater responsibility to the American people than usual: Covid, collective pain (George Floyd & many other incidents), the economy reaching new lows, etc…
All those things made a disaster out of 2020. Which is why these elections have for many of us, become a matter of life or death.
Only in Texas…
Trump supporters showcased it perfectly on Friday: 100 trucks surprised Biden’s team by surrounding their campaign bus. A unique escort for a unique guest!
Biden’s team got startled by the event, but Trump enjoyed the show, later tweeting “I LOVE TEXAS!”
But this light-hearted frenzy might soon turn to chaos in the days following the elections…
✅ Quick Overview
📌 A $3 billion time out for Jack Ma: Ant Group´s IPO gets suspended
📌 Stock Market volatility is off the charts.
📌 2nd round of lockdown for Europe 🥊
📌 Trump´s campaign website hacked one week away from elections
👁 Sneak peek into the future
It´s December 2020, Biden won the elections, but surprise… Trump contested the results!
Just like a baby hangs on to his toys when he gets punished, Trump refused to yield the power to Biden….
And although any president has a right to do so, this brought panic upon an already shaken up America.
You could hear it in the streets where protestors were marching and screaming for answers. You could see it in every market sinking to lower lows than March. And stocks’ volatility expressed how scared investors were. Finally, Layoffs tore families apart’…
But after months in court, the verdict was final and Biden was back to save the day.
You gotta’ give it to him: In the short term, his policies really did ease the situation. Especially for business owners and families, who could enjoy a (financial) stress-free life.
But by raising taxes on everything making money in America, the situation took a turn for the worse.
See, less money to the rich means less money to the people who own companies. And that eventually means less money to the employees. In turn, you get a worse economy altogether…
Childish investors knew that taxing the rich wasn’t the answer. They also understood that to earn real freedom, they needed a business.
👶 Eat your veggies
Writing-off business expenses
If you own a business, you can often buy things for half their price
The key to understanding this concept is to focus on two types of taxes: corporate tax and dividend tax.
But how does it work, you ask? Well, its basically a two-step process:
1. Get the money
To take money out of your business, you issue yourself dividends. And you’re taxed on these dividends.
What happens when you buy something as a business expense is that you do that directly through the business. (Thus eliminating the tax! )
💡 Subtract the amount you would’ve paid in dividend taxes to the price of the item.
2. Reduce your profits
Bear with us on this one!
When you have a business, you pay something called corporate taxes. So a certain percentage is taken out of your entire profits.
But business expenses reduce your overall profits, which means you pay less corporate taxes!
💡 Subtract the amount you would’ve paid in corporate taxes to the price of the item.
Thanks for reading, guys. We really hope you enjoyed it! 😉
Tell us what you thought by replying! And Stay Tuned for a lot more amazing content!
- Ryan & Zak
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Twitter >> @ChildishInvest