Grant Cardone, finance expert and investor, bestselling author and founder of the 10X Growth Conference, may be all about big money, but there’s one thing related to his finances he prefers to keep small: taxes.
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If Cardone had it his way, according to a recent Instagram video, there would be no income tax in the United States.
“If [taxes] were zero, this country would rock. If you give me my tax money back, I’m gonna spend it. I’m gonna spend it, I’m gonna invest it,” he said in the video.
Instead, he said, everyone ends up being taxed on this money. He explained it as follows: “I earn $1 million dollars, they want 40% of that, so $400,000 went to the federal government. If you live in New York City, they took another $100,000, now I have $500,000 left. I go spend the $500K, they tax it (sales tax). If the $500,000 went to you … you had to pay taxes on the $500K. So I pay taxes on my million, you pay taxes on the $500K. [If you pay $300K] to the guy down the street, he had to pay taxes on it…”
Here’s more of what Cardone said about income taxes.
Cardone Works Around Federal Taxes
Cardone made the bold statement that he doesn’t even pay federal taxes, stating that out of the past 20 years, he’s paid federal taxes approximately twice.
He is able to do this because he makes money at a scale the average American does not — so he can write off a $10 million or $12 million helicopter as a way of reducing his tax burden, among other strategies.
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Other Taxes Are OK With Cardone
He’s actually OK with other kinds of taxes, such as property taxes and sales taxes.
“I don’t mind paying local taxes. Property taxes, fine. I go buy something, tax me, fine. I buy a car, tax me. There’s so many taxes in this country right now it’s unbelievable.”
How Can You Get Your Income Taxes to Zero?
Cardone spends a lot of time trying to teach other high-earners how to keep the most of their money without paying taxes.
The most effective way to do this? You live on as little of your earned income as possible, he said, and instead invest as much as you can into a business or property.
If you had $2 million of earned income and invested $1.6 million into a property, which will appreciate in value to around $4.8 million, you’d then end up with $2.4 million in depreciation, netting you a tax liability of -$800,000, essentially a “credit” that can be carried forward into your next tax year.
While it’s hard to say if there will ever be a time when people do not pay some amount of income tax, if you’re in the position to earn a lot of money, following Cardone’s strategies can help you keep as much of your money as possible.
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This article originally appeared on GOBankingRates.com: Grant Cardone: Here’s Why the US Shouldn’t Have an Income Tax
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