Could Entrepreneurship Help Cardi B Get a Leg Up on Her Taxes?

Could Entrepreneurship Help Cardi B Get a Leg Up on Her Taxes?

(Image: Instagram)

Cardi B might have made “money moves” famous, but recently she brought to light what many of us often wonder when we drive over massive potholes, see overflowing public trash bins, or share a train ride with homeless people who seemingly have been forgotten.

What is Uncle Sam doing with our money?

Cardi recently took to social media in a now-viral video, questioning why she has to fork over so much tax money out of her hip-hop superstardom and Mona Scott checks. Billboard reports she was more than annoyed about the 40% tax rate. (Hey, when you start making more income and moving up in those tax brackets, it’s inevitable that you’ll start getting hit in your pockets.)

“Uncle Sam, I want to know what you’re doing with my f—ing tax money,” she says in the video. “You know what I’m saying? When you donate to a kid from a foreign country, they give you updates on what they doing with your donation.”

She also expressed that she doesn’t see proof that tax money is being put to good use: “The streets are always dirty, New York one of the dirtiest cities in America. What is y’all doin’? There’s rats on the damn trains. I know you ain’t spending it in no damn prison because y’all be givin’ n—-s two underwears, one jumpsuit for like five months.”

Fans commented informing the platinum-selling star that the government uses citizens’ taxes to support programs like SSI and the military, but Cardi wasn’t having it: “How do you know tho? where is the prove? My neighborhood still look like s—!”

But what are ways anybody who has enjoyed an increase in income can see more of their money in the bank? One idea: Cardi might need to think about joining the millions of other successful female entrepreneurs of color. (By no means is this direct advisement, but it’s definitely something to look into, especially if Cardi wants to diversify her financial portfolio and build generational wealth that can be sustained for years to come.)

Consider starting a small business that is a pass-through entity. In an interview with Black Enterprise contributor Jeffrey McKinney, Thomas Jones Jr., lead tax partner at McConnell & Jones L.L.P., indicated that “most owners of pass-through entities, including S corporations, partnerships, and sole proprietorships, will see their income tax lowered with a new 20% income reduction calculation. The Act increases the amount of income allowed to be claimed as pass-through from 17.4% to 20%.”

Once you start a business, put in a provision to transfer to your children in your estate plan. “The estate tax, which applies to the transfer of property to decedents, either as a gift or through a will or trust, has been doubled,” Jones cited in the interview. “The basic amount of the exemption for individuals has jumped from $5 million to $10 million.”