Mark Moss explains why two people earning the same salary end up with vastly different wealth. The difference is tax structure: depreciation, credits, and asset purchases can let you keep 30 to 50 percent more of what you earn, and reinvesting those savings compounds into real wealth.
You can have two people that make the exact same amount of money, but their outcomes in their financial life are completely different. And a lot of it comes down to how they structure the amount of money that they earn. You see, the tax code is not just a set of punishments, it's a set of incentives. And so you can have two people that make the same amount of money. One person works with the tax code and buys assets that give them tax depreciation and tax credits, which means they get to keep more of the income that they earn, while the other person just continues to give up 30, 40, sometimes 50% of their income. If I could reclaim even 50% of what I typically give to the IRS, and I can invest that, then my outcome is completely different. So it's not about how much you earn, it's how you structure what you make, how much you keep, and if you can get it to keep compounding.
