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Revision as of 01:37, 14 May 2026


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Contributing a deductible $1,000 will lower the taxable income on the $30,000 each and every year person from $20,650 to $19,650 and save taxes of $150 (=15% of $1000). For the $100,000 every single year person, his taxable income decreases from $90,650 to $89,650 and saves him $280 (=28% of $1000) - almost double!

In our software company there are two to be able to build wealth and in which through intellectual property and maintenance legal agreements. These two things used together will build a moving company that can be sold for 2-4X revenue. Now to foster that investment with leverage, I take advantage of the "Infinite Banking Concept" to lend money to the business through "my own bank." The money business pays me comes back as investment income and that means lower tax bill. The new revenue the additional maintenance contracts bring foster new shrinks. The next step will be use "good debt" to leverage our coverage and purchase more maintenance contract revenue with our software website.

In 2003 the JGTRRA, or Jobs and Growth Tax Relief Reconciliation Act, was passed, expanding the 10% tax bracket and accelerating some on the changes passed in the 2001 EGTRRA.