Page 165 - Midas Touch

High Unemployment

This example also illustrates why unemployment is so high. Why would
anyone want to become an entrepreneur when the government punishes the
small entrepreneur with more taxes and excessive rules and regulations?
Why take all that risk only to be punished by the government? How can a
small entrepreneur survive when the government is your biggest expense?
How can an entrepreneur hire new employees when the government makes
hiring employees more and more expensive? If you are unemployed, why
become an entrepreneur if you can make more money collecting free

money from the government?

The problem is the solution. In other words, taxes and regulations are the
problem, and also the way out of the problem. One of the best advantages
of becoming an entrepreneur is that the government gives you a tax break
for accounting, legal, and tax advice. Employees are not allowed this tax
break. If an employee hires an accountant, they pay for that advice with

after-tax dollars. As an entrepreneur, you pay for this advice with pre-tax
dollars. In simple terms, the government gives you a tax break for hiring
smart advisors. This is where the entrepreneur gets their real-world
education that employees never receive.

Most small entrepreneurs see taxes, accountants, and attorneys as
parasites. Yet, with a change in their point of view, an entrepreneur may
see taxes, accounts, and attorneys as their partners in developing their

Midas Touch. The problem with most S’s is that they are former E’s who
quit their jobs and now own their jobs. They do not own a business. The
tax laws are written for people who own businesses, not for people who
own jobs.

The most important job of an S is to turn their job into a business. They do
that by developing their Midas Touch and evolving into the B and I
quadrants.

How Does an S Become a B?
The irony is that tax laws are really incentives and stimulus laws. The tax
laws are encouraging all of us to become B’s and I’s. At the same time, the
tax laws punish those in the E and S quadrants. This is true all over the

world.