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At Rich Dad, we love sharing how awesome investing in real estate is for saving money on taxes. But before we dive in, let’s first establish why the tax code is so important for the rich…and how the poor and middle class simply think differently about taxes than the rich do.

A few years ago, as a new tax law pushed through by Trump came into effect, you may have seen a number of articles pop up around who was benefiting and how.

It was good news for employees, or at least most of them. As FOX News reported, the average middle-income household got a tax cut of around $930 —a 1.6% increase in after-tax income.

The article shared some quotes from people on Twitter:

“I just checked my paycheck and I have $100 extra dollars! That money will go to my church and help pay a bill.”

“Looked at my paycheck today, took home $130 more than last paycheck.”

One woman who works as a secretary at a high school was “pleasantly surprised” that her pay went up $1.50 a week. She did the math and realized that equaled $78 a year, which would cover the cost of her Costco membership.

It was nice that these folks enjoyed a little extra money in their pockets, but most people’s reactions showed two mindsets when it comes to taxes—and ultimately money in general.

The employee tax mindset

The reality is employees have little control over their money when it comes to taxes. They are at the full discretion of the law, which gives them very little wiggle room.

So, it’s not surprising to see how the people responded. Though there was a mix of both positive and negative reactions at the time, there was one theme that was common: “I have to accept what the government gives me.”

The employee mindset might be bitter or it might be glad about their tax situation, but what is shared is a mindset that there is nothing you can do about it. After all, you can’t fight city hall, right?

The rich tax mindset

On the other hand, the rich were excited about the tax cuts. Not because they might make more or less in after-tax income (though the smart ones always will make more), but because they had new incentives built into the law to discover and take advantage of.

The rich understand that tax laws encourage certain behaviors and reward them for taking action. You can read more about this in the post “Are you doing what the tax code wants?“

At the time of Trump’s new tax laws, it’s no doubt that most rich people were in contact with their tax advisors looking for ways to make more money with the tax code, both by moving away from things that increase the tax bill and adopting practices and investments that are incentivized.

This shows a common mindset of the rich when it comes to taxes: “I go and take what the government gives me.”

How the rich make the rules and play the game of taxes

Rich dad said, “When it comes to taxes, the rich make the rules.”

He also said, “If you want to be rich, you need to play by the rules of the rich.”

The rules of money are skewed in favor of the rich, and against the working and middle classes. After all, someone has to pay taxes.

The middle class, of course, does not like this. That is why they get so mad when they find out that the rich can avoid paying taxes and when they find out that the rich often avoid paying taxes because they help write the rules.

A good example of this comes from an article by the publication “Recode” called, “The new hotness for tech billionaires? Do-gooder investments they can write off on their taxes.” The article talks about a tax law called “Opportunity Zones.” Essentially, these are low-income areas of the country where the rich can invest their money to spur economic development. By doing so, they can defer their capital gains taxes through 2026, and they can also pay no taxes on the profit they make from the in-vestments in these opportunity zones.

The article itself, from the title to many of the quotes, is filled with contempt for the idea of rich people saving money on taxes by investing in low-income areas. But perhaps most galling to folks is that the law was crafted by a rich person.

“Behind it all is another Silicon Valley billionaire: Napster founder and early Facebook executive Sean Parker, who is using his celebrity and Rolodex to schmooze the wealthiest people in town. He’s been chatting up people like his longtime friend Peter Thiel, LinkedIn founder Reid Hoffman and venture capitalist John Doerr, pitching them on the idea in the way only a true peer can.”

Again, as rich dad said, “When it comes to taxes, the rich make the rules.”

The rich, taxes, and fairness

When it comes to conversations like this, most people appeal to some sense of justice. It’s not fair, they cry, that the rich get to make the rules when it comes to taxes. It’s unjust, they say, that the rich can avoid paying taxes while the middle class and the poor are stuck with the bill.

Okay, it’s not fair. But, as you’ve probably already been told, life isn’t fair.

Rather than focus on what’s fair and waste time complaining, consider learning the rules the rich make and play by them yourself. Of course, the government is in on this. They, after all, create the tax code to encourage certain behavior that they want people to do, like investing in poor areas. Here’s another post that talks more on this: “Why I’m Glad Donald Trump Paid $0 in Taxes.”

As Robert Kiyosaki wrote then:

• In short, the many credits and breaks that are found in the tax code are there precisely because the government wants you to take advantage of them. For instance, the government wants cheap housing. Because of this, there are many tax credits for affordable housing that developers and investors can take advantage of that minimize their tax liability, put more money in their pocket, and in turn, create affordable housing. Everyone wins.

• There are many scenarios like this in the tax code that incentivize investors and entrepreneurs to do activities the government is looking for while rewarding those who take those actions with lower-or zero-tax burden.

• Because of this, limiting your tax liability actually means you’re doing what the government wants you to do through the tax code. And that is the most patriotic thing you can do.