Grant Cardone, a prominent entrepreneur and real estate investor, has once again sparked conversation with his direct remarks about the Internal Revenue Service (IRS) and the broader role of taxation in American life. Cardone, known for his candid style and unapologetic views on wealth-building, recently asserted that taxes represent a significant portion of personal earnings and challenged the necessity and integrity of the IRS. He argued that the United States was most prosperous before the IRS existed and that paying taxes is not inherently patriotic.
Cardone’s perspective is rooted in his personal journey and professional philosophy. Rising from modest beginnings, he built a multimillion-dollar real estate empire and became a best-selling author, motivational speaker, and social media influencer. His books, such as The 10X Rule, emphasize aggressive goal-setting, self-reliance, and maximizing personal potential. Cardone’s brand is deeply intertwined with themes of financial independence and skepticism toward traditional financial institutions and government oversight.
Why Cardone’s Views Resonate
Cardone’s critique of the IRS and federal taxation aligns with a broader libertarian sentiment that values minimal government intervention and champions individual autonomy. His assertion that “the most patriotic thing you can do is not pay the IRS a penny” is consistent with his advocacy for keeping earned wealth in the hands of individuals rather than redistributing it through government programs. This viewpoint appeals to segments of the public who are frustrated with perceived government inefficiency or question the effectiveness of federal spending.
Cardone’s authority on financial matters stems from his business success and his role as an educator in personal finance. With millions of followers across social platforms, his opinions carry weight, particularly among aspiring entrepreneurs and investors. His message, while controversial, is delivered from a position of experience in wealth creation and management.
New Tax Savings Under the OBBBA
Whether you agree or disagree with Cardone’s view on taxes, the passage of President Donald Trump’s One Big Beautiful Bill Act (OBBBA) means Americans across the country will be paying substantially less in taxes this year. It’s clear that Cardone’s ideology is seemingly shared to some extent by the current administration, with the average American now expected to take home thousands of more dollars over the next several years.
After multiple rounds of revisions, the final version of OBBBA includes:
- A flat $6,000 tax deduction for seniors (SEC. 70001) on top of the $15,000 to $30,000 standard deduction until 2029.
- Increasing the Child Tax Credit from $2,000 to $2,200 and making it permanent (SEC. 70104)
- If you have a business, you used to only be eligible for a 20% Qualified Business Income Deduction. Now, there’s a minimum $400 deduction as long as you had at least $1,000 in income and are actively engaged in the business. There were reports of raising the threshold to 23%, but that didn’t make it into the final version of the bill (SEC. 70105)
- No Tax on Tips: Employees who work in fields that traditionally receive tips may now receive a deduction up to $25,000 for qualified tips (SEC. 70201)
- No Tax on Overtime: $25,000 deduction (or $12,500 for individuals) on overtime pay (SEC. 70202.)
There are substantial tax benefits for people with children. The new “Trump Accounts” will create traditional IRA accounts (SEC. 530A) for children born after Jan. 1, 2025, and the government will fund them with $1,000. Individuals may contribute up to $5,000 per year to these accounts, but unlike a traditional IRA, they will not reduce one’s taxable income unless the contributions are made through an employer. The Child Tax Credit (SEC. 70104) was increased from $2,000 per child to $2,200, and tax-advantaged 529 accounts (SEC.70413) received a withdrawal increase from $10,000 to $20,000 per year. This means parents looking to send their kids to private elementary or secondary schools can withdraw up to $20,000 per year to fund the expenses.
Ties to Broader Economic Debates
Cardone’s comments touch on perennial debates about the role of taxation in society. The assertion that the country was most prosperous before the IRS references a period before the ratification of the 16th Amendment in 1913, which established the federal income tax. While some historians and economists argue that modern infrastructure and social programs depend on tax revenue, critics like Cardone contend that high taxation stifles innovation and personal growth.
In the context of current markets, Cardone’s message resonates during periods of economic uncertainty or when tax policy is a subject of political debate. His stance reflects ongoing tensions between wealth creation, government funding, and the responsibilities of citizenship.
Cardone’s outspoken position on the IRS exemplifies his broader philosophy: challenging conventional wisdom, questioning authority, and advocating for personal financial empowerment. Whether one agrees with his views or not, his influence on public discourse about money and government remains significant.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
