Twenty years ago, sci-fi fans geeked out to a new thriller called The Matrix following a dystopian vein established in Blade Runner, Total Recall, and The Terminator. It starred Keanu Reeves as “Neo” and Laurence Fishburne as “Morpheus”: freedom fighters in a world where machines have trapped humanity in a computer-generated dreamscape called the Matrix, to distract their minds while sucking energy from their bodies and brains. (Their allies include another hacker named Trinity, famed for cracking the IRS database, but that’s not what brings us here today.)
Early in Act One, Morpheus shows Neo two pills that look like ordinary cold medicine and presents him with a choice. “This is your last chance. After this, there is no turning back. You take the blue pill — the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill — you stay in Wonderland and I show you how deep the rabbit-hole goes.” It wouldn’t have been much of a movie if Neo had taken the blue pill — fortunately for viewers (and humanity), he picks red and challenges the machines to a future where “anything is possible.”
The Matrix established the blue pill and red pill as cultural metaphors for two very different perspectives on the world. The blue pill represents, at its worst, basking in sheeplike submission and accepting an essentially dishonest illusion. The red pill, by contrast, represents the genuine freedom and opportunity that come from accepting harsh but liberating reality. The choice you make has consequences in every aspect of your life — including your taxes and your finances.
In our world, every competent tax professional works within the system. (The occasional crooks who cheat on behalf of their clients make headlines because they’re so rare.) Most tax pros work the blue pill side of the line. They passively take the numbers their clients bring them, from their P&L statements, their W-2s, and 1099s. They feed the data into their computers to put the right numbers in the right boxes on the right forms. They do a great job telling clients how much they owe — and for most clients, the blue pill may be all they need.
But some tax pros do things a little differently. They work the red pill side of the line. They don’t just take the numbers you give them and run them through “the Matrix” of IRS forms and procedures. They help you structure your business entities, your benefit plans, and perhaps even your investment portfolio to pay the minimum possible tax. They don’t just accept the story the IRS writes for them. They work within the system to write you a happier ending.
You may not think choosing a tax advisor is quite as consequential as choosing between the red pill and the blue. But Neo didn’t realize he was living in the Matrix, either, not until Morpheus welcomed him to the desert of the real. The good news is, at least as far as taxes are concerned, the red pill doesn’t require you to outrun creepy agents of post-apocalyptic artificial intelligence or dodge bullets in a shadowy subway tunnel. It just takes opening your eyes to all the legal, ethical, and moral ways to pay less.
You don’t have to be a sci-fi fan to appreciate that sort of success. And you don’t have to follow the movies to appreciate the savings we create with the “red pill” approach. Just sit back and enjoy the show. And maybe next time you’re feeling philosophical, ask yourself if the tax system we work in is real, or are we just trapped in some sort of twisted virtual reality?
Contact Palm Beach Tax Group
Any financial questions? We have the answer. If you want to know more about about tax planning, your questions should be answered by a company that has the experience and knowledge to do so. Palm Beach Tax Group will make sure your savings, investments and taxes are all working together. Contact our friendly staff today at 561-655-5777 or fill out our contact form here.
Disclaimer: Blogs and articles by Palm Beach Tax Group are for educational purposes only and to give you a general understanding of the law, not to provide legal or tax advice or be used as a substitute for competent tax and financial assistance from a licensed, professional in your state or jurisdiction.
Use all blogs and articles at your own risk. The information presented may not reflect the most current legal developments or tax laws. These materials may be changed, improved, or updated without notice. Palm Beach Tax group is not responsible for errors or omissions in the content of this site or for damages arising from the use or performance of this site under any circumstances.