" Business Buys Your Assets When I was 25 and almost out of the Marine Corps, rich dad reminded me of the differencein two life paths. He said, "This is how your dad tries to invest and acquire assets": How то Get Rich Quick 295 He added, "This is how I invest": 'Always remember that the rules are different for the dif- ferent quadrants. Therefore, make your next career decision carefully. While that job with the airlines might be fun in the short term, in the long run, you might not get to be as rich as you want to be." How the Tax Laws Changed Although rich dad did not finish school, he was an avid stu- dent of economics, world history, and laws. When I was at- tending the U.S. Merchant Marine Academy, at Kings Point, New York (1965 to 1969), studying world trade, rich dad was very excited that my studies included admiralty law, business law, economics, and corporate law. Because I had studied these subjects, it was much easier for me to decide to not take a job as an airline pilot. The Reason Is Found in History One of the differences between America and the rest of the world colonized by the English is that the colonists in America protested excess taxes by organizing the Boston Tea Party. America grew rapidly from the 1800s to the 1900s sim- ply because we were a low-tax country. Being a low tax haven, the United States attracted entrepreneurs from all 296 Rich Dab's Guide to Investing over the world who wanted to get rich quickly. In 1913, how- ever, we passed the 16th Amendment, which made taxation of the rich possible, and that was the end of the low-tax state. Yet, the rich have always found a way out of the trap, which is why the laws are different for the different quadrants, es- pecially favoring the В quadrant, the quadrant of the ultra- rich of America. The rich have gotten even for the tax law change of 1913 by slowly changing laws and putting the pressure back on the other quadrants. So the slow creep of taxation has looked like this: In 1943, the Current Tax Payment Act was passed. Now, in- stead of just taxing the rich, the federal government was al- lowed to tax everyone in the E quadrant. If you were an employee, in the E quadrant, you could no longer pay your- self first because the government got paid first. People are al- ways shocked to see how much is taken out in both direct taxes as well as hidden taxes from their paycheck. In 1986, the Tax Refqrm Act was passed. This law change dramatically affected anyone who was a professional worker-people such as doctors, lawyers, accountants, archi- tects, engineers, etc. This law change prevented someone in the S quadrant from using the same tax laws used by the В quadrant. For example, if an S quadrant person has the same How то Get Rich Quick 297 income as а В quadrant person, the S quadrant worker will have to pay a beginning tax rate of 35% (50% when you in- clude social insurance taxes).