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See, there’s a huge difference between tax avoidance and tax evasion. Tax avoidance is good and smart business, tax evasion is illegal. We don’t recommend it, and you will never hear anything from us that will suggest in any way, shape or form about utilizing tax evasion, but tax avoidance. Everyone in this room uses tax avoidance constantly. You may say, “I don’t.” Well, if you ever wrote off the interest on your mortgage of your house, you were avoiding taxes. If you ever took a deduction for one of your children, if it was tax avoidance. Your spouse, tax avoidance.

See, those aren’t tax evasion though, those are totally legal. But, there are other things. I’m not going to spend a lot of time on a lot of these others, but I just want you to know in 1913, there were actually two tax forms created that year. There was the 1040 which all of you have used your whole life and is the only one that most of you know about. But, there was another one called a 1041, but it was put up on such a high shelf that you’ve never even heard about it.

That shelf was so high that even in 1913, you had to have a net worth of between $20 and $25 million and be able to have cashflow through your hands of about $2 million a year in 1913. If you did that, then you could use this other system which was very lucrative and very beneficial. It’s available to everybody as long as you got $25 million. Different set of rules on a different playing field. They created the rules and then set them up on a shelf high enough that you couldn’t use them.

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