Financial Gravity Responds to Attacks on Legitimate Tax Planning

Rhea-AI Summary

Financial Gravity Companies Inc. (OTCQB: FGCO) addressed flaws in ProPublica's report titled The Secret IRS Files, which criticized billionaires for low tax payments relative to wealth growth. Chief Tax Strategist Edward Lyon defended that gains are not counted as 'income' until sold, illustrating this with Warren Buffett's tax situation. Financial Gravity's Tax Master Network trains CPAs to offer tax and wealth management services, enhancing their professional capabilities. The company emphasizes that their tax strategies are legal and ethical, asserting no obligation to pay more tax than required.

Positive

• Financial Gravity's Tax Master Network improves training for CPAs and EAs, enhancing their service offerings.
• The company positions itself in a growing market for tax and wealth management services.

Negative

• None.

AUSTIN, Texas, June 22, 2021 /PRNewswire/ -- Financial Gravity Companies Inc. (OTCQB: FGCO), replied to flaws in an investigative newsroom's analysis of billionaire tax avoidance.

On June 8, the independent newsroom ProPublica published a report called The Secret IRS Files, based on leaked tax returns, that concludes American's billionaires "pay income taxes that are only a tiny fraction of the hundreds of millions, if not billions, their fortunes grow each year."

ProPublica accuses them of exploiting "tax avoidance strategies beyond the reach of ordinary people." They compared how much the 25 richest Americans paid each year to how much their wealth grew in that same time period, and called that their "true" tax rate. But, says Financial Gravity's Chief Tax Strategist Edward Lyon, "tax professionals understand those gains don't count as 'income' until they sell."

From 2004-2018, Berkshire Hathaway CEO Warren Buffett's wealth grew by $24.3 billion. He paid $23.7 million in tax, which ProPublica calls a "true" tax rate of just 0.10%. However, Buffett reported just $125 million of actual "income" – meaning he paid a far-less-scandalous 18.96%.

Billionaires like Buffett can borrow against soaring stock prices instead of selling. But borrowing against those gains isn't limited to the wealthy. Americans who bought houses 10 or 20 years ago may have seen values double or triple. They can borrow against their equity, too, just like Buffett. They don't owe tax until they sell. When that time comes, they can exclude up to $500,000 of their gain. None of this is unethical – courts have routinely held there's no duty to pay more tax than legally required.

Financial Gravity's Tax Master Network subsidiary converts CPAs and EAs into Family Office Directors who provide integrated tax and wealth management services using Financial Gravity's proprietary planning and asset management platform. Members also enjoy comprehensive marketing and technical training resources. Interested professionals can visit www.TaxMasterNetwork.com/ to learn more.

About Financial Gravity Companies, Inc.
Financial Gravity Companies is a parent company of financial services companies including brokerage, wealth management, estate planning, family office services, risk management, business and personal tax planning, business consulting, and financial advisor services. Financial Gravity's mission is to synergistically bring together companies that create symbiotic advantages to each other in order to bring a complete financial experience to our clients. www.financialgravity.com

Forward-Looking Statements
This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from the current expectations. No forward-looking statement can be guaranteed.

Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect Financial Gravity's business, and Financial Gravity undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

View original content:http://www.prnewswire.com/news-releases/financial-gravity-responds-to-attacks-on-legitimate-tax-planning-301317033.html

SOURCE Financial Gravity Companies, Inc.

FAQ

What is Financial Gravity's response to ProPublica's report on billionaires' tax payments?

Financial Gravity claims that gains are not considered 'income' until sold, thus defending tax strategies utilized by billionaires.

How does Financial Gravity train tax professionals?

Through its Tax Master Network, Financial Gravity converts CPAs and EAs into Family Office Directors, offering integrated tax and wealth management services.

What does Financial Gravity Companies focus on?

The company focuses on financial services including wealth management, tax planning, and business consulting.

What is the ticker symbol for Financial Gravity?

The ticker symbol for Financial Gravity Companies Inc. is FGCO.