If you have a 10 year loan, you'd put 10 here.

So 5 million of liabilities.

So the actual effect ends up being 2,100.

And the net income is 357,000.

You'll hear people talking in terms of 10 1 or 2 1, or something to one, but 10 3 is a fair leverage ratio.

Well, that means the ratio of the assets to the equity is 2 1.

Maintenance, same thing.

I owe these people that money is 700 and my equity is 300.

So basically Republicans who make more than 250,000 dollars a year don't want to be taxed.

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

And it actually should be an after tax return on that cash.

The most obvious solution is to take from those who earn the most.

Like its agriculture,

And what is required is a combination of physical capital, institutional capital, human capital and security, of course, is critical, but so is information.

It should start to make a little bit of intuitive sense

They make you pay more in withholding just to help their cash flow out.

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

Why don't we lower both lines?

liabilities plus equity.

And there will also be a progression on the other side of the coin.

This income tax saving from interest deduction, this is assuming that at that marginal tax rate, you can deduct the property tax and the interest on the debt.

In this example that I did in the previous video, it was the pre tax return on asset.

I believe there are three really big changes we need to bring about.

Expenditures that are exactly twice the amount of the basic income will be the zero point for tax payments.

In a world without leverage so if I didn't have all this

So this is just another visual representation that

less capital intensive that there's less money that's required

It doesn't sound like we borrowed money or anything.

So I'm going to talk about some projects that have explored these ideas.

And here the story is fairly simple.

But let's say its assets are worth 1 million.

And then, let's just say they're in the Caribbean and they don't have to pay taxes.

Capitalist country.

We could do a series of videos on that.

If there is no more income tax and VAT is only added at the end of the value chain, then we have a VAT of around 100 .

In this case, the ratio of our assets to equity so we have assets to equity leverage, is what people say in this case, it's 1,000 to 300 or what is it?

The consumption tax is now 5 percent in Japan.

A man of wealth has to pay a lot of income tax.

I'll do that in yellow.

Let's figure it out. It's equity.

One, what shares are share of

You love your heroes.

No, it's taxexclusive