How To Legally Pay $0 in Taxes – How Billionaires Do It


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in the description. In July of 2017, Jeff Bezos made history and
surpassed bill gates as the richest man in the world with a net worth of 153 billion
dollars. To understand his scale of wealth, let’s look
at some numbers. Earlier this year, Jeff announced that he
is separating from his wife Mackenzie but because they live in Seattle,
his wife has the right to a large portion of his wealth, to be more precise – 35 billion
dollars, that will make her 3rd ri chest woman in the world. But Jeff isn’t worried because he will still
be on the top of the list with over 110 billion dollars. That’s how rich Bezos is, he can afford a
divorce and still be on the top of the Forbes list. Behind his enormous wealth, stands a conglomerate
and if you know anything about Amazon, you know that it is on the way to take over the
world. But did you know that this company that’s
valued almost at a trillion dollars, paid 0 dollars in federal taxes? To understand how this guy with such a loud
laugh is making billions of dollars while not paying taxes at all, we have to take a
look at history! We know Amazon as the place to go for online
shopping. But for Netflix, uber, and thousands of others,
Amazon is their way to the internet. They rely on amazon web services for their
websites to function. What started as a side project to support
amazon.com quickly grew into a multi-billion dollar company by itself, earning more money
than Amazon ever had. In fact, if you take a look at the numbers,
more than 41 percent of the internet relies on AWS. Only big corporations such as Google, Microsoft,
and Facebook aren’t on the mercy of Amazon since they are big enough to build their own
infrastructure. But that’s not the only industry that Amazon
has its grip on. Even for us, the consumers, Amazon is no longer
the middleman who connects buyers with sellers. It’s becoming the seller itself. Amazon now sells more than 450 if its own
brands from watches to clothes. Cables to furniture. Competing with the rest of sellers on the
platform to be on the top of the list and since its Amazon, they definitely know how
to keep their products on the main page. And its only a matter of time before everything
that’s sold on Amazon will be produced by Amazon itself. for an Amazon box to reach your door, it needs
to go through many hands. from a tuck to a plane to a van and maybe
then to your doorstep. and Amazon has heavily been relying on UPS, FedEx and US postal service. but that’s about to change. To be more precise, it’s already changing. Amazon now has more 50 planes and hundreds
of vans and semi-trucks to ship its own products. It already handles a quarter of its shipping. and it doesn’t seem to stop there. Remember Amazon web service, it started to
provide servers to Amazon websites but quickly began providing servers for everyone else.
and it seems like Amazon wants to do the exact same thing with Amazon fulfillment and become
a logistics company. Although Amazon is a small fish compared to
UPS and FedEx in the logistics industry. Amazon is on its way to change that. Once Amazon is completely self-sufficient,
it can easily drive shipping cost down. It doesn’t have to make a profit since it
has multiple other businesses that already generate billions of dollars in revenue and
once UPS and FedEx are out of business, then Amazon can slightly increase the prices and
enjoy unbelievable profits since it will the only player in the market. Amazon doesn’t just want to be the place
where you periodically buy strange gadgets. It wants you to buy groceries at Amazon, that’s
why it purchased whole foods market. Many of us still prefer to physically go to
the store but we all know that it is about to change. and Amazon doesn’t want to miss the opportunity
to take over the industry. The grocery business is definitely competitive
but no one is more qualified to do that than Amazon. They have the technology, experience, and
money! Even though Netflix relies on Amazon. Amazon is on its way to change that. In 2010, Amazon launched Amazon studios to
challenge Netflix. Of course, they are too small to be compared
to Netflix, but that’s what the bookstore managers said when Amazon started selling
books online. They will keep pouring money and creating
as many shows as they need to convince you to switch to Amazon studies. And unlike Amazon. UPS, FedEx, and Netflix do not have a side
business that earns them a pile of cash! You see, Amazon is playing the long game,
Instead of making a profit, amazon simply reinvests its revenue back into the company
to grow bigger and faster. In fact, sometimes the company didn’t even
make a profit because they poured every dime they made back into the company to take over
other industries and reported a loss although they could have made billions of dollars in
profit. And when you make a loss as a company, you
can carry them forward and write them off from future tax bills, which is what Amazon
has been doing. But that’s not all. Every nation wants its companies to be technologically
competitive. So to encourage companies to spend more and
more on research and development, governments offer tax credits and amazon is simply taking
full advantage of that. Its spending billions of dollars to automate
its warehouses for example. build better gadgets and voice assistant like
Alexa. It’s improving its web services to stay competitive
and pouring billions on amazon go for example. On top of that, the recent changes by Donald
Trump on the tax code made it even better for Amazon. Now, they can write off their depreciation
right from the beginning instead of splitting it for over multiple decades. And then there is stock-based compensation. It’s actually a common practice among the
companies. Instead of paying their employees in cash,
amazon pays them in amazon shares that it creates out of nothing and then simply writes
off those shares from its tax bills. In this way, Amazon isn’t only getting free
employees but also lowers its tax bill significantly. Last year, it reported over a billion dollar
in stock-based compensation tax benefits. It’s simple but quite nasty! Its sounds simple in theory but quite difficult
in practice, because to do this you need the stock price to constantly rise and if you
give it a closer look, it’s a very well planned strategy. Amazon makes billions of dollars in revenue
but then uses that cash to take over other industries and deducts it from its tax bill,
that keeps the stock price increasing which allows amazon to pay its employees in stocks
instead of cash and writes that off again from its tax bill. So, at the end of the day, the company keeps
growing making Jeff Bezos wealthier but their tax bill stays fairly moderate. In 2018, the company reported 11.3 billion
dollars in profit, instead of paying 35% corporate tax, it had to pay only 21 percent or 2.37
billion dollars since Donald Trump reduced the corporate tax to “keep American firms
more competitive”. But amazon’s tax credits and stock-based
compositions amounted to 2.5 billion dollars. So instead of paying income tax, amazon actually
got a 129 million dollars tax refund. In fact, it wasn’t their first year, a year
prior to that, in 2017, the company also paid nothing on its $5.6 billion U.S. profits and
claimed a tax fund of $140 million. It seems like Bezos long term strategy paid
off. Just to be clear, that doesn’t mean that
Amazon doesn’t pay taxes at all, it still pays state, local and international taxes
for example. But their tax bill is significantly smaller
compared to their size. At the end of the day, how many trillion-dollar
companies do you know?! Whether it’s good or bad, that’s up to
everyone’s interpretation, but Amazon is simply taking advantage of the system and you can’t
really blame them for that. In fact, they are not the only one, companies
were doing that for decades. Remember, the purpose of any business is to
maximize profit and not pay taxes. On the other side, Amazon has provided jobs
to hundreds of thousands of people, not only in America but around the globe. It’s the second biggest employer in America
just behind Walmart. Thats probably the main reason why amazon
has been growing exponentially since its inception. If you have invested just a thousand dollars
in amazon back when it was founded, you would be have made 1.3 Million dollars by 2018. Don’t worry if you have missed the opportunity
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Why Hydrogen Cars Will Be Tesla’s Biggest Threat


If you ask anyone what the
future of cars looks like, they’ll probably tell you it’s electric and that Tesla is at the
forefront of the movement. But what if I told you
that there’s another option that could be just as good or even better than
battery-electric vehicles? What if you could power cars with the most abundant
resource in the universe with water as the only byproduct? And they’re more likely to
disrupt the auto industry than battery-powered cars, like Teslas. Hydrogen fuel cells have been a technology of great promise as well as great skepticism. Elon Musk himself often mocks
hydrogen fuel cell technology, going so far as to call them “fool cells” and “mind-bogglingly stupid.” But major automakers still see promise. First, let’s define the terms. Battery electric vehicles, or BEVs, are the electric vehicles that most of us are familiar with today, like Teslas. They use a battery to store electricity and power the electric motor. A hydrogen fuel cell
electric vehicle, or FCEV, like Toyota’s Mirai,
combines hydrogen with oxygen to produce electricity, which then powers the electric
motor that drives the car. Now, when it comes to why people don’t buy battery-electric vehicles like Teslas, there are three main reasons: They take too long to recharge, they have a limited range before they need to be recharged, and they cost a lot more than your comparable gas-powered car. So, how do hydrogen cars
stack up in these areas? When it comes to recharging, hydrogen cars have battery-electrics beat. At a supercharging
station, a Tesla can charge anywhere from 30% to 50% in 15 minutes, but you’ll be at the charging
station for over an hour for a full charge. Fuel-cell vehicles don’t
require charging at all. The hydrogen tank is refilled
at a hydrogen station in less than five minutes, just like your typical gas station today. That’s because FCEVs don’t store electricity like a battery; they create it on demand
to power the motor. When it comes to range,
hydrogen-powered cars seem to come out on top again. Between the three fuel-cell
vehicles on the road today, they have a range of
312, 360, and 380 miles. Most electric vehicles have a range under 250 miles. While some Tesla models offer a range of more than 300 miles, they often cost more than the
average car buyer can afford. Range and refueling times are so important that 78% of automotive executives believe fuel-cell vehicles
will be the breakthrough for electric mobility. But that’s not to say fuel-cell vehicles don’t have challenges of their own. FCEVs need more competitive pricing. The suggested retail price
for the fuel-cell vehicles available today is around $60,000, which is about $20,000 more than an entry-level BEV. That’s because production
size of these vehicles is incredibly low. With
only a few thousand or few hundred being made every year, it’s nearly impossible for
prices to be competitive. But that could soon be changing. Automakers are looking to
increase the production of their FCEVs. Toyota in particular has increased its production capabilities
tenfold to eventually bring down the cost of its Mirai. The real challenge for hydrogen fuel cells is the lack of infrastructure. In the US, the majority
of hydrogen stations are in California, with just over 40 available to fuel-cell owners. For FCEVs to become the breakthrough that automotive executives believe in, a vast network for
hydrogen stations is vital. And automakers are slowly
working to make it happen. Jackie Birdsall: We do get to
work together with the other automakers, as well as with,
you know, here in California, the state of California and
the industrial gas suppliers, or whomever the energy provider is, to be able to site hydrogen
stations where it makes the most sense for all of
the automakers’ vehicles. And so that’s to try to make sure that any investment that we make is best leveraged by all of the consumers from all of the automakers
that currently offer fuel-cell vehicles. Narrator: If and when
fuel-cell vehicles scale, Tesla will have a tough
challenge on their hands. They’ll have to increase
range while simultaneously decreasing recharging time and price. But Teslas, and any
battery-electric vehicles, are limited because of the
law of diminishing returns. Increasing the range
requires a larger battery. A larger battery will add
more weight to the car. After a certain point, the added weight no longer yields additional range. With FCEVs, it’s just a numbers game. More hydrogen stations equal more cars, and more cars equal more
affordable fuel-cell vehicles. Tesla has a lock on the
zero-emissions market in America, controlling a whopping
60% of the EV market. But that’s still only 2% of the entire US car market. And those numbers decrease
when we talk about the global car market. The only thing really holding
FCEVs back is infrastructure, and as hydrogen stations
become more abundant, Tesla could lose the majority
of the zero-emissions market. For a technology that’s
“mind-bogglingly stupid,” it has serious potential to
become a real competition for the very same customers
that Tesla’s aiming for. So, Elon might want to take notice.

Why Kolinsky Sable Brushes Are So Expensive | So Expensive


Making a Series 7 kolinsky sable watercolor brush isn’t easy. The largest-size brush can take almost a week and a half to make. You can pick up a cheap, synthetic brush for under $2, but a Series 7 could cost you over $300. So why would anyone pay for a brush that costs over 100 times the price? Originally created on the request of Queen Victoria, the Series 7 brush was first made in 1866 and was designed to be the finest possible brush
for watercolor painting. Since then, the skill and craftsmanship that goes into making
each one of these brushes has remained exactly the same. To achieve this, the company needed skilled brush makers. And so, in 1946, set up a new factory in Lowestoft, England, a fishing town with a
history of rope making. This factory now makes over 25 million brushes a year. The intricate work and dexterity required means that these brushes are almost exclusively made by women. It takes three years to train, and there are only nine brush makers in the world that can make these top-of-the-range Series 7 brushes. Sandra Harris: I joined
here when I was 16. I worked 18 years, and I had 12 years off,
and I’ve been back 11, so that’s 28 years I’ve been working for the company. When you first start, you would probably only make a few. You’ve got to get, like anything, you’ve got a skill and you build on that, and you get to learn the skill, and then you get to do the speed. Narrator: The components play a big part in the cost. Each brush head is made
from kolinsky sable, a Siberian weasel that’s
hair is said to cost three times the price of gold by weight. These weasels are hunted sustainably every spring under CITES guidelines across Siberia and Manchuria. Only guard hairs from the tail will do. Kolinsky hairs are chosen because every single strand has a surface of directional, interlocking scales, increasing the surface area and giving the hairs their strength. And while many other natural and synthetic hairs are used for brushes, nothing has quite matched the quality of sable. Once the hairs are cleaned and graded, it’s time to start making the brush. The wool has to be removed with a comb, and the hairs are packaged up and carefully boiled and ironed. The brushes have to be made with hair at its natural length. And the skilled brush makers can effortlessly separate between 28- and 32-millimeter-length hairs just with their hands. This skill takes years
of training and practice. The nine brush makers each have 27 years of experience, on average. Hairs that are blunt or twisted have to be discarded. And most importantly, as each natural hair comes to a point, every hair must be the correct way up. The removed upside-down hairs can be flipped and reused. Every single hair is checked over by hand. The smallest-brush-size hairs are just 7 millimeters long, shorter than an average eyelash. Shane Buckingham: We can’t afford to let standards drop in any way, shape, or form. What I would say from that is what this factory has is hand skills. It has individual skills. It has skills that, when I have new people come in here, they don’t sometimes believe that this kind of work still happens. We show them what people do, they will turn round and say, “I’ll never be able to do that.” But they will be able to do that if they understand that
quality comes first. Narrator: When the hairs are all sorted, they’re ready to go into the cannon. The bundle is tied together and gently twisted through. Individual hairs are added or taken away until it’s an exact fit. Buckingham: They need
to have that fine point to work with, that, basically, it has that color-carrying capacity. That the brush won’t split or do anything that it shouldn’t do, basically. Through the hair that we use, through the skills of our makers and how they make them, we’ve done everything we possibly can to make sure that we have produced the best product we possibly can. Narrator: Then, it’s time to attach the handles. The factory uses birch wood handles imported from Italy. The brush is glued into place, and then the brush heads are
crimped onto the handles. This crimping process bends the metal to shape and keeps the handle tightly attached to the brush. Once the paintbrush is assembled, it needs to be branded and tested. The size and logo of each brush is stamped in gold on the handle. Wet-point testing assures that everything works exactly as expected and there aren’t any
loose or crooked hairs. Each brush is then gummed, a process that gives the brush head its final shape and allows it to bounce back. The shape of the natural hairs gives the brush a wide belly and a fine point. Mark Brindle: So, the
key to our brush making is the people. And that is the skill. We retain knowledge from generation to generation. So, we have makers now that are working under an apprenticeship of a 49-year-served brush maker, who himself had an apprenticeship under another 49-year-serving brush maker, who was brought into the business under his father, who made brushes directly for Queen Victoria. And it’s very key that we retain that knowledge throughout the business, generation to generation, and we are now bringing in the next
generation to make sure that we uphold the very high-quality standards that we base ourselves on.