Nelson Nash: Businesses Don't PAY Taxes, They COLLECT Taxes (16 of 30)

All right, you. With Parkinson's Law, you win.

By default because your peers can't do it. Everything in the financial world is compared to what you're doing, compared to what everybody else is doing. Most people in our whole continent can't quit Parkinson's Law. They're addicted to that sort of stuff. That's why Hyrux wrote the book about the world in the grip of an idea. They can't shake that thing. Well, you can if you get your mindset right. What not, it's being done. Well, if you do, you go run into Willie. Sutton's Law. Do y' all know who Willie was?

Yeah.

Bank robber. Yeah, Notorious bank robber. Actually is born in 1900. Same year my mother was born. Now, when he became of age, he took up a career in bank robbing. He would rob a bank, they'd catch him and put him in jail. He'd get out. The process was repeated so many times, he became notorious all over the usa. Somebody interviewed him for a magazine one time, said, willie, why you keep robbing those banks? He says, well, that's where they keep the money.

So Sutton's Law, wherever wealth is accumulated, somebody going to try to steal it first. Labor saving device will don't produce anything, just steal what those other guys produced.

Now.

Who is the biggest thief in the world? You don't know? China Revenue Agency? The irs? Well, I think the IRS is bigger. We got more people. I'm going to tell you about that. Yeah, biggest thief in the world. Well, you might have the gut feeling that's true. But if you can't articulate it as uninitiated, you haven't done any good. So this is what I do. Since old Stephen here lives in Washington, I'm going to invite him down to Birmingham and I take him down to the Galleria Shopping mall. I've never seen a shopping mall without a food court. Have you? They all have food courts. And about 11 o' clock on, there's people around food. So I take Stephen down there, get close to the food court. I stop, get everybody's attention, pull out a pistol and put to Stephen's temple. Dean, give me the contents of your wallet. I'm going to blow your brains out. I don't know those people, Bob, but I can predict with absolute certainty how they will behave. They will say, Nellie is stealing from Stephen. That is wrong. Put Nelly in jail.

Yes, but you let me gather that cry about an hour before he shows up. Let me talk to him how we're going to divide the contents of his wallet. Distribute among ourselves and enforce that decision with a gun. Now they'll tell you that's democracy in action.

That's what we got going on. Yeah, it's unbelievable the deterioration of the thought process that has occurred in my lifetime.

Now.

People understand this. It's the greatest thief in the world, so forth. When you explain it correctly and, and then they start weeping and wailing and gnashing their teeth. They say, oh, woe is me. I build up wealth, I do good. Then those so and so's come steal from me. Well, pray tell, who else they gonna steal from? They can't steal from the poor. The poor ain't got any money. But Will, the truth is exactly opposite. I'm an Austrian economist, Remember.

I spent 69 years studying this stuff.

I have a piece in Warehouse of Wealth and most of y' all have read that. Thank you for that.

I explained this. It's called Lies, Lies, Lies. That chapter about lies, lies, lies. I'm riding down the Interstate 18 Wheeler passes me transition door to my lane. I'm riding behind him for about 15 minutes and I see a sign on the back of his trailer. This truck paid $8,764 in taxes last year. And after a while it finally dawned on my slow brain that's a lie. That tax. That truck didn't pay those taxes. Did the owner of the truck line pay those taxes?

No.

Who paid your taxes?

Consumers.

It's always that way. Consumers pay for everything. There are no exceptions. But that's not what the general public thinks, is it? I went on to explain. Here's George Wallace running for re election for governor in Alabama years ago. One of his speeches I remember very well. We're going to take it easy on you little guys. The taxis. We're going to socket Alabama Power instead.

Daryl, Alabama Power could care less. Among things, they're public utility. They operate on a cost plus basis. They are guaranteed to make a profit. The more they charge, the more they make. Now you think US citizens are going to catch on to that fact? Do you think Alabama citizens are going to catch on to that fact? No way. Because they listen to politicians noise.

Well, I wouldn't know what to explain. Here's this highly paid executive, Bob. He's changing jobs. He's applying for a new job. Now he's got it figured out. He can make it on 300,000 a year after taxes. That's all he can spend anyway. Now you know he does on good and well. He's got to negotiate a package of 500,000 and all. They have 300,000 left over to live on. The corporation signs on him, pays him 500,000.

Well.

How does the corporation recover their money? Tell me.

He said the price of whatever they sell.

Do we have any people that are estimators for a construction business in here?

I've done it before.

All right, well, you know something about it then. You know what? Can you tell them what an estimator does?

Well, estimate is going to guess what the labor is going to take and the cost of the materials.

Yeah.

All the other things in your pocket, including taxes, they're going to have to pay. And then he puts a margin of profit in there they expected to earn. And then another little fudge factory jic, just in case. Just in case.

Well, didn't all the other bidders have to do the same thing?

If they don't, they're going to go to business.

Of course. So who paid the taxes?

So businesses don't pay taxes, they collect taxes.

Exactly. There is no such thing as. As corporate taxes. But what do you hear out there on the idiot box from the politicians? What do you hear? We're going to lower tax, huh? No, we going to suck it to corporations so you won't have to pay.

Just shows up in higher prices, that's all.

Again, they don't think at all. And do you think that government schools are going to teach you this? Good grief.

So where do people send their kids to get indoctrinated? I didn't say educated.

They spent enormous amounts of money to send them to colleges to get their brains fried.

Paul Cleveland. I told you. My Austin economist friend at Birmingham Southern called his fellow professors.

Comrades.

Now I'm a singer. I got hooked on singing in choir, churches, church choir, when I was 13. I can't quit now. The guy that we have at our church now, he's fantastic. He's the best I've ever seen.

He reminds me of the Porsche automobile. Plato. Y' all ever heard that? Porsche automobiles. Macho. Nothing even comes close. I just described Joe.

Nobody comes close. He's the head of the Department of Fine Arts at Sanford University, a private university. He was reading my book on the way back from a business trip one time, and we were in conversation. Sometime later, he said, that section you had in your book about the arrival syndrome. He says, you were describing academia, weren't you?

So real educators understand this, but you know, they're going along to the system. They're just. That's just what's going on, that's all.

There are a few that use it as a place to just hang their hat. For instance, Tom DiLorenzo is one of my very best friends. He's an economist at Loyola in Baltimore. His hobby is history. He's written a number of fantastic books. And somebody gave him quarter million dollars here the other day to take on a project history stuff. So.

That'S their day job, you know, just to make groceries or whatever. But they do their work outside of it and in their lives. Thanks, babe.

All right, wait, wait. I wanted to explain to these people that I sell books.

By the way, BYOD is sold over 300,000 copies. It's in 31 countries. Now. That means they got to be shipped, whatever. Do I pay shipping? No. No way. My customer pay should be covered always.

Now, did you know I could sell my books for 40% less than what I charge for them? If it weren't for the irs, it wouldn't be no business. Y' all understand that? Okay, so I meet somebody for the first time. And every once in a while somebody's going to ask me, what do you do? Quite often I tell them I'm an unpaid IRS tax collector.

Well, isn't that more accurate?

See, describe things accurately and behavior changes.

Okay, all right. So worrying about Willie Sutton's Law isn't all that important. Learning how to live in that world by just seceding is the name of the game. You got to remember the Golden Rule. Y' all know the Golden Rule. Those have a goal. Make the rule. Always has been, always will be. No exceptions.

So your objective should be to create gold. Well, when you do, you're going to improve other people's lives. And you did not intend to do that.

Adam Smith, in his book.

Wealth of nations, 1776, he described the concept of the invisible hand.

You help, you go out there and do something to benefit. You would invariably help other people. That was not your intention. That's the way the free market works.

This is the worst thing that can happen to anybody, though. I call it the Arrival syndrome.

I already know everything. No point in trying to teach me something new.

Holstein, the historian, said the greatest obstacle to discover the shapes of the earth, the continents and oceans, was not ignorance in the illusion of knowledge. Malcolm Forbes said that none of these people I know don't know it all. Y' all run any nodomes?

Leonard Reed, my mentor, wrote about that. Lots. By the way, do y' all read banknotes?

Yes.

I'm serializing one of his books, Their Vision. One chapter per month. And of course, he talks about this phenomenon about know it alls that how infested this world is with people who quote, know it alls and they inflict themselves upon ordinary citizens and some other people actually believe some of these people.

Back there. Years ago.

One of my.

Real estate partnerships sold 13 acres to Bruno's department. Bruno's Grocery store. Sorry, grocery store. They started up business in about 1959 Sixth Avenue south in Birmingham. That store worked. They cranked up another store in another part of town. Then what happened? Tell me.

Duplicate. And again and again. And don't fix it. It's not broken. Yes, keep on. Well, before long now, they had 150 stores in the southeast United States. All right, we sold them 13 acres to build a store. I thought that I had the perfect entree to teach them banking through life insurance. Talking to the chief financial officer. Anybody want to tell me how long I lasted in his office?

Three minutes.

I'm better than that. We had a cup of coffee, man, love.

Give us some credit. It was less than 15. We put that one.

I was thrown out.

Who are you to talk to us about our business? We are the epitome of highest dumps. Boy, did they get their comeuppance in just about three years.

That was a family owned business, folks. The three real brains of the company had a real bad habit. Between no Christmas shows, Thanksgiving and. And New Year's. Thanksgiving and Christmas, brother. Thanksgiving and Christmas, all three guys would get in the same airplane and fly to some other city where there's a bunch of stores, get out, go deliver the bonus checks to the managers. Glad hand and back slap the other employees and say, man, what a great job you all did this year. Let's do a better job next year. Go back and get in the airplane and go to the next city. And some.

Y' all know where Atlanta, Georgia is? Northwest of Atlanta is Rome, Georgia. We don't have mountains there like you have here. There's hills. They're high enough to catch airplanes no matter what. Y' all know the definition of a mountain? A mountain is 2000ft Local relief. Wherever the base is about. From that base. Okay, okay, let's dramatize it. Denver. Y' all know about Denver? Mile high city. Yeah, but how high are the mountains? 14,000ft. Well, subtract five. They're not all that tall. The highest local relief is down around Palm Springs, Florida of Palm Springs, California. The elevation there is about below sea level in few places, but yet the mountains at 12,000ft or so.

Y' all got mountains like that. All right, so they delivered the Checks there in Monroe. They were going to Nashville or someplace like that. There was an overcast out there and so got to fly instruments. Well, there's two sets of shooting instrument approaches. They can't get a clearance. Y' all understand that? He understands.

They can't get a clearance. Not for those guys landed or went somewhere else. Well, the pilots had been flying earlier that day. They knew that the solid overcast would thin.

And I can see their thought process right now. We know about that. Let's just take off Visual flight rules underneath it. Go out here a while and pop up through and we're just seconds and we go on to the next city. Plan worked real good till they ran inside one of those hills.

All three died. All three died. All right. KK they had less than one tenth of the amount of life insurance they should owned on those three people.

You see the result?

There's the empty warehouse that's been there for 20 something years. Now is that on the land that you sold the 13 acres? No. Oh no. This is their warehouse where they've been operating for years and whatnot. But that's only 1/3 of them. Wow, I didn't have a wide enough lens.

That's 1/3 of them, all right. KKR bought them out. KKR didn't know anything about running grocery business. Somebody else bought them out, Nancy. Non existent whatnot. But you know with the epitome that is the epitome of the arrival syndrome and you cannot penetrate this kind of thing. They got to learn the hard way or somehow discover it on their own. Otherwise you wasting your time.

Find somebody that is willing to learn is the best procedure in my opinion.

All right, so this is Sir Francis Drake's Prayer before he set out to be the first man instructor to navigate the world in Portsmouth, England, 1577. Disturb us, O Lord, when we're too well pleased with ourselves. When we dreams that come true. Because. Because we dream too little. When we arrive safely because we sail too close to the shore. Disturb us, O Lord, with the abundance of things we possess. We cease to. We lost our thirst for the waters of life. Having fallen in love. Love with life. We cease to dream of eternity. In our efforts to build a new earth, we've allowed our vision of a new heaven to dim disturbance, O Lord, Is there more? Boldly venture on wider seas where storms will show your mastery. Where, Susan sight of land. We'll find the stars. We ask you to push back the horizons of our hopes. Push us into the future in strength, courage, hope and love. This we ask in the name of our captain, who is Jesus Christ? I can't describe the arrival syndrome any better than what he's talking about there. Avoid the Arrival syndrome. That is the worst thing can happen in life. Keep on learning. I named it infinite for a reason. The more you see, the more you see you didn't see.

It's a continuous discovery process, as you shall see tomorrow. All right, the last one is what I call use it or lose it. Mark 4:25 in the new Testament says, for he that hath to him shall be given. He that hath not from him shall be taken even that which he had. You don't believe that That's Jesus Christ describing the kingdom of heaven to disciples. I paraphrase it this way. He said, boys, this is the way it is. Those that have yet, if you got it, if you don't use it, you're going to lose it.

Demonstrate that on a smaller.

Platform.

You know Joe Pantosia, don't you? But you know Joe Pandosia, all right. I'm doing a seminar in Las Vegas for him a few years ago, and.

Just he.

There was a Delta Airlines captain, their own front row. And we got to this point, said.

Sir, which seat are you in the airplane in the cockpit? Left or right? You all know the difference.

Pilot, one skull pilot.

Yeah, left seat. Left seat's the captain. Both of them know how to fly the airplane very well, don't they, Mark? They better know how to fly the damn thing. Yes, sir. Do y' all know what the difference in the pay scale is?

Just say significant.

So why you want to get your four bars? Yeah. So which side? Which side? Which seat are you in? Left. If you don't maintain proficiency in that seven, six, seven, what's going to happen to you? It says, I won't be flying right or left seat anymore. Use it or lose it. You gotta maintain proficiency. See, that's kind of going in line with that fifth rule there of. Rethink your thinking. Always read the checklist, stuff like that. All right. IBC is a totally different paradigm. It's really a personal monetary system.