In this episode Hector Garcia and Kirk Bowman dive into the question, What did accountants do before taxes? The question came up during Episode 003, while discussing the role of financial independence. They go back in time to the era before compliance (income taxes).
- Hector reviews the economic history that led to the creation of the federal income tax.
- Kirk recommends The Men Who Built America documentary series to learn more of the history.
- Hector explains the role of labor and materials in traditional accounting.
- Hector and Kirk explore the best opportunity for advisors: resource planning.
- Kirk explains why the pendulum of compliance has swung way too far.
- Hector compares the risk of business and the conservative nature of compliance.
- The discussion continues with a discussion of good risk vs. bad risk.