Another great episode from Kevin Young’s blog called “Ask Kevin Young” where Kevin answers any question! Today’s topic is “Why Pay Tax?” and how can property investment can be beneficial for that.
If you want to ask your question send your question either through:
1. Twitter by using Tweet: #askKevinYoung
2. Write him on Facebook or,
3. Fill out the form on Kevin Youngs official Website.
Now have a look to the Ask Kevin Young Episode 5:
[00:45] Jonathan: How do I operate a business without paying tax?
[02:07] How does the deficit effect property investment?
Good day, I’m Kevin Young. I’m Australia’s most successful property investor. I started out poor and I’m constantly being asked how do you do it. How do you get there? You ask me I will give you the solutions. Between us we’ll make you wealthy.
My favorite subject is why pay tax. You shouldn’t pay tax. Let’s go and have a coffee.
Hey Jonathan, good to see you.
Jonathan: How do I operate a business without paying tax?
Okay here we are in my local favorite coffee shop and Jonathan makes the best chips in the world. Jonathan I’m here to talk about income tax.
Jonathan: Thank you.
Kevin Young: You pay tax?
Jonathan: Yes, of course.
Kevin Young: If the business pays tax it can’t afford to invest in it’s own business and to expand it’s business so why do you pay tax?
Jonathan: Just for government
Kevin Young: I haven’t paid tax since 1971. I retired in 1974. But I did it legally, I haven’t been behind bars. That’s the secret I think to educate people which is what Property Club does to show them how legally help the economy with new dwellings and use the tax credits on the new dwellings so you don’t have to pay any income tax. And you can use that money to employ more staff, make more good chips, more good food and help me.
Kevin Young: It’s in your pocket. You can make premises bigger, make the economy bigger. It’s in the governments pocket, they don’t know what to do with it.
Great Jonathan, on that topic could you order me a flat white and we’ll sit down and have a chat.
Jonathan: Thank you.
Kevin Young: Thanks Jonathan.
Jonathan: Thank you.
“Your coffee sir.”
How does the deficit effect property investment?
Jonathan we’ve got people who are in business and were short of cash. We’ve showed them how to use property to get the cash to expand their business. It also applies to people who are PAYG and the government are using that tax gram to fix the deficit. I’d rather the deficit get fixed by more people being employed, the more extra people paying tax the better for the deficit. That’s a positive way to do it.
This chart here shows that it will credit quarter million new jobs in the economy which is great. A quarter new million people paying tax which is great. A quarter million new people spending money which is great and we’re going to kick up which is good. They’ve silly thing they’ve stopped is employment growth. They’re soon going to have to correct it and bring this back into the market. The simple fact is that owner occupiers and first time buyers don’t buy off the plan. They don’t buy off just a hole in the ground. They want to see if finished and they’ll come in at the end so by killing off the investors part of the market they’re really stopping the supply of new dwellings in the market. Less supply, the old banana story, less supply people want it, up goes the price.
But suddenly we’ve got a flip flop. Reserve Bank, the investors are buying and doing what we told them to, hitting the market, let’s stop it. So now we’re seeing a slow down in funds going to investors. We’ll see a slow down of building. We’ll see a jump in unemployment and we’ll see again another reason for interest rates to come down. So what we need is more people not paying tax by buying brand new properties or second hand properties, get all the tax credit that comes with it then they’re not paying any income tax creating all these jobs and that’s what we need, jobs, jobs, jobs.
So thank you for sending your questions in. If you have any more questions #AskKevinYoung. I stopped paying tax in 1971, retired in 1974 and you’re going to do the same.
Hope you’ve enjoyed this fifth episode. I hope it inspired you to get wealthy and start paying tax and hope you shared this with your friends. I need you questions, so I can make you wealthy. Please share it with your friends. Remember, Tweet: #askKevinYoung to ask your questions.