He's talking about tax games some self made wealthy people play. Like if you own a business with good cash flow you can start an LLC, use your main business to loan the new business money to buy a house for you to live in and or a vacation homes. Start a rental business for your toys, flip real estate, and quickly reinvest the profits into bigger more expensive real estate. Once you get to the point you can take a big pay day pay tax one time, and live off that money for years, while you reinvest your companies cash flow. Thats how Buffet can make the claim his secretary paid more taxes than him. He's probably been operating off the last paycheck he cut himself for 25 million dollars in 1985 because he doesnt need to take a check, he can increase his net worth through the value of his companies. I responded to him with an explanation of why it isnt practical for "most well" off business owners to do.

Read rich dad poor dad.

Executive summary: rich people write the rules and play by them. If they have a business that posts a loss, they write it off and don’t pay taxes. Business expenses? Write that off as a loss and don’t pay taxes.

If you make $100k, you pay $33k in tax. Start a business, put your internet, your phone, and your car on it. Gas is a business expense. A portion of your house is a business expense. Go out with friends? Mention your business and it’s a business expense.

Add up all those costs, and if they’re more than what your business brings in, you write them off. Say you find $15k in write offs, submit your taxes and get a $15k refund

Real estate depreciates, so you get to write that off. It’s the easiest business to run. A rental property takes care of itself while appreciating.

You don’t need a ton of cash either. Get a slum - it pays the same. $50k property needs $10k down for the loan. It get some slob renter in at what your mortgage costs, and write off everything under the sun.