EP333: Why Taxing the Rich Makes You Poor

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In this episode, we’re going to saying something that might make some of you uncomfortable: Taxing the rich is stupid. 🤓🤓

Now before you sharpen your pitchforks, let’s be clear—we’re not saying the wealthy shouldn’t pay taxes. What we’re saying is this:

No one should be forced into a higher rate just because they earn more.

Because taxing the rich doesn’t actually help the poor—it hurts them.

When you punish success, you shrink opportunity. Fewer jobs. Less investment. Slower growth.

And here’s the part politicians will never admit: the biggest lie they tell is that paying higher taxes makes you patriotic. That isn’t patriotism. It’s manipulation.

➡️ We’re Palmy ➕ Nancy — AKA the Kitti Sisters and we’re living proof of the American Dream.

We went from ZERO to $400 million in multifamily real estate in just a few short years, while saving our investors over $93 million in taxes.

Based on the One Big, Beautiful Bill Act that just passed, we’re on track to save our investors $100 million in taxes by the end of this year.

Now, we need to tell you something that’s going to make you ANGRY. Politicians are playing the oldest trick in the book – they’re making YOU the enemy of your own neighbors, your own community, your own country.

They’re pointing fingers at “the ultra-rich” saying THEY’RE the reason we have a deficit. THEY’RE the reason the government is broke. THEY’RE the reason your kids can’t get good schools and your roads have potholes.

But that’s a LIE designed to keep you distracted while they rob you blind.

Look, we’re okay with paying our fair share. But here’s the brutal truth – unless the government actually fixes their spending habits, no matter what we do, they will NEVER collect enough taxes. You could tax everyone at 90% and they’d still find a way to spend more than they take in.

The truth?

This isn’t a revenue problem – it’s a SPENDING problem.

They’re spending YOUR money on cocaine studies for birds, $34,000 conference tables, and billions in earmarks for their political buddies. Then they have the audacity to tell you there’s not enough money for Social Security.

It’s like watching your neighbor max out every credit card on gambling and luxury vacations, then show up at YOUR door demanding half your paycheck because “you make more money.”

You’d call the police. But when the government does it, they call it “patriotic.”

They’re tearing apart the fabric of our society by making successful people the villains instead of taking responsibility for their own incompetence.

And the saddest part?

The people who suffer most from this class warfare aren’t the ultra-wealthy – they have escape plans. It’s the working families, the small business owners, the people trying to build something better for their children.

Every politician who promises to “tax the rich” is actually targeting YOU – the ones who work 80-hour weeks, taking on big risks to build a better life.

This isn’t just about economics – this is about the FREEDOM that comes from keeping your hard-earned money instead of funding the most wasteful, irresponsible organization in human history.

We’re going to give you five devastating truths backed by verified data, then show you exactly how to fight back with our 5-step real estate survival plan that’s helped thousands of high-income earners legally reduce their tax burden by $100K to $500K annually.

The Real Estate Reality Check

Look, we’re going to be completely honest with you upfront. We LOVE 🏢 real estate because it:

• Generates monthly cash flow that pays you while you sleep
• Appreciates in value faster than inflation over time
• Hedges against currency debasement.
• Can’t be printed by the government like dollars6hold
• You can get the banks to be your biggest partner
• While you have your tenants paying down your mortgage principal every month

Take a look at this loan statement from one of our properties.

👉 For this month alone, the debt service is $250,390.

That breaks down to $122,525.28 in interest and $9,486.43 in principal.

Now, here’s the question: do you think our investors are pulling that money out of their own pockets?

Absolutely not.

That bill is being paid—every single month—by the tenants who love living in our apartments.

Now, even with all we just said, you might still not love real estate, fair enough. You might think real estate is illiquid, requires too much management, or is just too much work compared to throwing money in index funds.

And we don’t blame you for not liking real estate.

Because what most of us know to be “real estate” is single-family home rentals. And let’s be honest – that sucks. It’s slow, it’s minimal cash flow, it’s tedious.

You’re dealing with tenants, toilets, and termites.

It takes 30+ years hoping it appreciates, praying there’s no major repairs – which there always are. You’re dealing with evictions yourself, managing everything personally.

Plus, you’re personally liable. YOU sign on every loan. You’re maxed out at 10 loans, maybe 20 if your spouse signs on another 10. You’re stuck with whatever property you bought, in whatever condition it’s in, with whatever tenants you inherited.

But here’s the thing – investing in real estate even though you don’t like it is like when I (👋 Nan) broke my collarbone.

Did I LOVE being in a sling for 6 weeks, having to sleep in a beach chair because she couldn’t lie flat?

No way. 🥵🥵

I had no choice if I wanted my bone to heal correctly.

That’s exactly how you should think about real estate right now. You might not love it, but it’s the financial equivalent of Nan’s sling – it’s what’s going to grow your wealth while everything else around you breaks down.

The reason you feel this way about real estate isn’t your fault. That’s what we ALL know real estate to be. Nan and I used to feel the exact same way. We thought real estate meant being landlords, fixing toilets at 2 AM, and hoping our tenants didn’t destroy our properties.

Until we were introduced to multifamily syndications. And that completely changed everything for us.

Multifamily syndications removed ALL the things we hated about “real estate” ⏬

• No tenant management (professional property management handles everything)
• No personal liability (you’re a passive investor, not personally guaranteeing loans)
• No loan limits (you can invest in multiple deals without personal debt)
• No illiquidity issues (typically 3-7 year hold periods with clear exit strategies)
• No small-time cash flows (we’re talking about $20M-$100M+ properties with institutional-level returns)
• No hoping for appreciation (professional operators with proven track records of forcing value appreciation)
• No maintenance headaches (experienced teams handle all operations)

This is what opened our eyes to REAL real estate investing – the kind that billionaires and institutions use. Not mom-and-pop rental properties, but large-scale, professionally managed, cash-flowing assets.

Just like my sling wasn’t comfortable, but it was necessary for healing, real estate investing might not be your first choice, but it’s necessary for your financial survival.

But here’s the brutal truth we’re about to prove to you with hard data – after what we’re going to show you, you really have NO CHOICE but to invest in real estate if you want to preserve your wealth.

The government has systematically destroyed every other option.

The Great Tax Migration – Why the Rich Always Escape

Here’s the first truth they don’t want you to know – when politicians say “tax the rich,” they’re not talking about billionaires.

They’re talking about YOU, business owners and the high-income professional who can’t just pack up and leave… or can you?

Let us show you what really happens when politicians raise taxes on “the rich.”

New York 🗽 provides the perfect case study.

In 2021, the combined New York State and New York City top tax rate reached 14.8% – the highest combined state and local rate in the nation. When you add federal taxes, successful New Yorkers in the highest brackets face marginal tax rates in the mid-50s on their income.

The result? According to the IRS migration data, New York lost approximately $14.2 billion in adjusted gross income in the 2021-2022 period as high earners fled to Florida, Texas, and other no-tax states.

Florida gained over $39.2 billion in adjusted gross income during the same period. Texas gained $10.9 billion. These aren’t just numbers – these represent thousands of ultra high networth families who decided they’d rather keep their money than fund New York’s bloated government.

And it’s accelerating. According to the U.S. Census Bureau, California had a net domestic out-migration of 343,230 residents in 2022 alone. According to SmartAsset’s analysis, the average departing household earned significantly more than those moving in.

But here’s what makes me FURIOUS – while the ultra-wealthy have teams of lawyers creating offshore structures in the Cayman Islands, Switzerland, and Monaco, politicians are telling hardworking high-income earners that it’s your “patriotic duty” to pay these crushing tax rates!

The ultra-wealthy?

They’re not even in the game. According to ProPublica’s analysis of IRS data, the 25 richest Americans paid an average “true tax rate” of just 3.4% between 2014 and 2018 when measuring taxes against wealth growth. Jeff Bezos paid zero federal income tax in 2007 and 2011. Elon Musk paid zero in 2018. Warren Buffett’s true tax rate was 0.1%.

Meanwhile, if you’re making $500K as a W-2 employee in high-tax states, you’re paying effective rates that are 15 times higher than billionaires as a percentage of your wealth growth.

This is why we teach high-income earners to think strategically about taxes, not emotionally about “fairness.”

The game is rigged, but you can learn the rules.

Now let us tell you something that should make every high-income taxpayer furious.

While politicians demand you “pay your fair share,” America’s infrastructure is literally crumbling beneath us.

The ASCE’s 2025 Report Card gave the nation’s infrastructure a C grade, warning that it will take up to $9.1 trillion over the next decade to bring highways, bridges, water systems, and transit into good repair.

Yet only $5.4 trillion is projected to be spent, leaving a $3.7 trillion gap. Bridges are among the most urgent: 36%—more than 220,000 spans—need major repair or replacement, with costs approaching $400 billion. At current spending rates, it could take until 2071 just to catch up, even as new deterioration piles on.

Meanwhile, Congress is not prioritizing these needs. Instead, they approved $26.1 billion in earmark spending in 2023 alone—pet projects in politicians’ home districts that have nothing to do with keeping Americans safe on the roads, securing our supply chains, or strengthening the economy.

This is just the tip of the iceberg.

Historical “wastebooks” document millions spent on pointless animal studies, luxury government furniture, and even $630,000 by the State Department on Facebook “likes.”

And while billions are wasted on nonsense, the promises that actually matter are collapsing.

Social Security is projected to be insolvent by 2035—benefits cut automatically by 20–25%. Medicare Part A will be bankrupt by 2033.

And looming over it all, the national debt has exploded to $37 trillion, with annual interest payments now over $1 trillion—more than the entire defense budget.

To put that in perspective: if you earned $100,000 a year, it would be like carrying $370,000 in credit card debt and paying $10,000 a year in interest without touching the principal.

You’d be bankrupt in months.

The government’s answer? Borrow even more to pay yesterday’s bills.

Federal spending has grown from **$1.8 trillion in 2000 to $6.8 trillion in 2024—a 278% increase—**while the population grew only 19%. This is not a revenue problem. It’s a spending problem. And their “solution” is to take even more from you.

Here’s what that means for your money: they will print to pay their obligations. Your dollars will be debased. Your bonds inflated away. Your stocks are taxed to the bone.

But there is one hedge left—real estate. When they print money, property values rise. When they debase the currency, fixed-rate mortgages get cheaper to pay. And when they raise taxes, real estate gives you depreciation deductions.

Think about it: this is like living with a gambling-addicted spouse who’s maxed out every credit card, blown the kids’ college fund at the casino, and now insists you hand over more money “for the bills.” That’s the government. That’s the machine.

The Innovation Assassination

This brings me to something that should make every high-income entrepreneur and professional ANGRY about the long-term consequences of this tax-and-spend mentality.

You’re the backbone of the American economy.

According to the Small Business Administration, small businesses created approximately 62% of net new jobs between 1995 and 2021.

You’re the doctors saving lives, the business owners creating employment, the professionals driving innovation.

You took massive risks, invested years in education, work 60-80 hour weeks – and politicians want to punish you for succeeding.

Let us show you what happens when you punish success with data from around the world.

France implemented a 75% tax on incomes over €1 million in 2012.

The result?

According to the French Ministry of Finance, they collected almost no revenue because high earners either left the country or restructured their income.

The policy was so disastrous they repealed it in 2015. Notable French entrepreneurs like Gérard Depardieu moved their tax residence abroad.

Sweden tried a wealth tax from 1947 to 2007. According to the Swedish Tax Agency, they lost more revenue from people leaving than they collected from the tax. IKEA founder Ingvar Kamprad moved to Switzerland in 1976, decades before the tax was finally abolished in 2007.

This isn’t just about your money – this is about the signal it sends to the next generation.

But here’s what’s happening right here in America. According to Gallup polling, only 45% of young Americans viewed capitalism positively in 2018, down from 68% in 2010. According to Pew Research, only 40% of 18-29 year-olds viewed capitalism positively in 2022.

When you destroy the incentive to create wealth, you don’t hurt billionaires – they have options. You hurt everyone who aspires to financial success.

The Real Impact of Wealth Creation

Here’s what politicians never tell you when they demonize wealth creation:

When high earners keep more of their money, they don’t stash it away like Scrooge McDuck—they put it to work.

Take Dr. Patterson. He saved $180,000 through multifamily investing and used it to hire 6 new medical staff. That’s nearly half a million dollars in wages flowing into the local economy—real jobs, real impact.

Or look at philanthropy and innovation. Bill Gates has given over $60 billion to global health and education.

Elon Musk put $10 billion into SpaceX. Jeff Bezos pledged $10 billion to fight climate change. And in 2022, everyday Americans donated almost $500 billion to charity—65% of it came from the top 20% of earners.

Private money also works better. Charities run at 15–20% overhead, while government programs often burn through 40% before a single dollar reaches the people it’s supposed to help.

So when you tax success more heavily, you’re not creating fairness—you’re killing jobs, stifling innovation, and draining the very fuel that builds communities.

The Billionaire Tax Avoidance Masterclass

But here’s the part that should make you absolutely FURIOUS – the ultra-wealthy aren’t even paying these taxes anyway! While you’re getting hammered with marginal tax rates in the mid-50s, billionaires are paying almost nothing.

Let us break down exactly how they do it with real examples and verified data.

Warren Buffett is worth approximately $118 billion according to Forbes, but according to ProPublica’s analysis of his tax returns, he paid a “true tax rate” of just 0.1% between 2014 and 2018 when measuring taxes against wealth growth.

It’s called the “Buy, Borrow, Die” strategy, and here’s exactly how it works 👇

Buy: Instead of taking salary or dividends, billionaires accumulate wealth through appreciating assets – stocks, real estate, art, businesses.

These create “unrealized gains” that aren’t taxed until sold.

Borrow: When they need cash, they don’t sell assets (which would trigger taxes).

Instead, they borrow against their assets at extremely low interest rates. Banks are happy to lend to billionaires at 2-3% interest rates using their portfolios as collateral.

Die: When they die, their heirs receive a “stepped-up basis” under Section 1014 of the tax code. The heirs can sell the assets immediately with no capital gains tax. The taxes are literally erased forever.

Jeff Bezos used this strategy masterfully.

According to ProPublica’s analysis, he paid zero federal income tax in 2007 and 2011 despite his net worth increasing by billions.

Elon Musk paid zero federal income tax in 2018 according to ProPublica, despite his net worth increasing by $13.9 billion that year.

Corporations historically used sophisticated strategies too. Amazon paid zero federal corporate income tax in 2017 and 2018 despite $11 billion in profits.

Apple and Google historically used complex offshore structures, though many of these were phased out after regulatory changes in 2015-2020.

Meanwhile, you’re getting destroyed by the tax code. If you’re making $500K as a W-2 employee, here’s what you’re really paying in 2025:

• Federal income tax: 35% bracket (37% starts at $609,350 for single filers)
• State income tax: Up to 13.3% in California, 10.9% in New York
• Social Security tax: 6.2% on first $174,900 (plus employer match)
• Medicare tax: 2.9% on all income (plus employer match)
• Additional Medicare tax: 0.9% on income over $200K

According to the Tax Foundation, the top 1% of earners (those making over $682,577) pay 42.3% of all federal income taxes.

But here’s the key – this isn’t billionaires. The average income of the top 1% is $1.7 million. These are successful professionals, not ultra-wealthy dynasties.

This is exactly why we don’t just build wealth – we teach high-income earners how to play by the same rules the ultra-wealthy use.

The Kitti Sisters 5-Step High-Income Wealth Acceleration Plan

So here’s exactly what we’re going to do about it. I’m going to give you the same 5-step plan we used to go from high-income earners getting destroyed by taxes to ultra-wealthy investors keeping more of what we earn:

Step 1️⃣ Stop Being the Government’s Favorite ATM (Immediate Action Required)

This week – not next month, THIS WEEK – you need to fire your regular CPA and hire a tax strategist who specializes in high-income earners.

Someone who understands advanced business structures, not just basic W-2 deductions.

Immediately restructure your income through LLCs or S-Corps to reduce your W-2 dependency.

If you’re making $500K as a W-2 employee, you’re paying the highest tax rates possible with the fewest deductions available.

Here’s a real example from our own journey. Back when we were in the fashion business, we were paying high six figures in taxes. When we asked our CPA what to do, her advice shocked us:

“Pay yourself the maximum payroll taxes possible. That way you won’t get audited.”

Wait a second—so the best strategy to deal with the IRS is to pay more tax than necessary? How does that make sense?

When we transitioned into real estate, we decided to get educated. We hired a true tax strategist, paid over $20,000 for a full review, and the results were life-changing. The very next year, we went from paying six figures in taxes… to paying zero in federal taxes—legally and ethically.

If you’ve ever seen a negative K-1 in your hands, you know exactly the kind of feeling we’re talking about.

And this didn’t just happened for us, it’s happened for 1,000s of our investors…

These are some of their actual K-1s from our investments…

Step 2️⃣ Deploy the “Rich Person’s Tax Code”

Maximize 100% Bonus Depreciation Through Real Estate Syndications.

Thanks to the One Big, Beautiful Bill Act passed in July 2025, 100% bonus depreciation is now available for qualified property acquired after January 19, 2025.

Invest in real estate syndications that provide immediate tax benefits through this bonus depreciation, allowing you to deduct the entire investment amount in year one while maintaining liquidity and control.

Real example: Our investor out of Dallas was making $1.2 million annually and paying $480,000 in taxes.

We helped him invest $400,000 across multiple real estate syndication projects. Through cost segregation and bonus depreciation, he generated $4,000,000 in first-year tax deductions, saving him millions in taxes while building a cash-flowing real estate portfolio.

Step 3️⃣ Create Your Own “Buy, Borrow, Die” Strategy

Build a Real Estate Portfolio You Can Leverage…

Build a diversified real estate portfolio that provides both cash flow and appreciating collateral.

Real estate is the preferred collateral of wealthy families because it’s tangible, income-producing, and historically appreciates faster than inflation.

Infinite Wealth Building

This is exactly how our Infinite Wealth Building Strategy works with our build-to-rent project. We’re developing over 100 townhomes, designed for long-term rental.

Here’s the play: in about 13 months, once the community is at 90%+ leased, we’ll refinance—moving from a construction loan into permanent financing. That triggers a cash-out refinance, which means our investors get their money back… and it’s tax-free. Why? Because the IRS doesn’t tax debt. And remember—the tenants are the ones paying down that loan, not you.

Since this is our own new construction, we’re not limited to doing this once. We can repeat cash-out refinancing again and again, compounding wealth for years—indefinitely, tax-free.

Step 4️⃣ Geographic Tax Arbitrage

If you’re in California, New York, New Jersey, or other high-tax states, you need an exit strategy. The numbers are staggering:

• California top rate: 13.3% (plus 1% mental health tax on income over $1M)
• New York State top rate: 10.9% (plus up to 3.876% NYC tax)
• New Jersey top rate: 10.75%

Compare to zero-tax states:

• Florida: 0% state income tax
• Texas: 0% state income tax
• Tennessee: 0% state income tax
• Nevada: 0% state income tax

If you can’t move immediately, establish a business presence in tax-friendly jurisdictions.

Many high-income professionals set up Nevada or Wyoming LLCs for their consulting or investment activities.

Time your asset sales and income recognition around potential relocations.

If you’re planning to move to Florida, delay stock sales and bonus payments until after you establish residency.

Step 5️⃣ Build Your Wealth Defense Network

Create your advisory team – you need specialists, not generalists:

• Tax strategist (not just a CPA): $5K-$15K annually, saves $50K-$300K
• Estate planning attorney: $10K-$25K for comprehensive planning
• Investment advisor specializing in alternatives: Fee-only advisors focusing on tax-advantaged investments
• Insurance specialist: For advanced life insurance strategies and asset protection

Diversify into alternative investments providing both returns AND tax benefits:

• Real estate syndications with bonus depreciation
• Opportunity Zone funds for capital gains deferral
• Private equity investments with favorable tax treatment
• Oil and gas partnerships with depletion allowances

This approach keeps you invested in real assets that you understand and control, rather than paper assets managed by others or retirement accounts with government-imposed restrictions.

The Movement

Here’s our challenge to every high-income earner who’s tired of funding government waste while being told you don’t pay enough…

The verified data we’ve shown you today proves that the system is rigged against high-income professionals like you.

While billionaires pay true tax rates under 5%, you’re paying marginal rates in the mid-50s. While politicians waste tens of billions on ridiculous projects, they demand more of your hard-earned money.

But here’s what they don’t want you to know – you have options.

The same strategies…

Remember – they want you compliant and broke.

We want you STRATEGIC and wealthy.

Strategic because you understand the tax code better than the politicians trying to exploit you.

Wealthy because you keep more of what you earn instead of funding their failures.

The choice is yours. 5️⃣😬😬

Stay a victim of their system, or join our rebellion and learn how to win the game they don’t want you to know exists.

And if you’re ready to see exactly how we’d build a real estate business today—if we had to start over from scratch—then we’ll see you in the next video.