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Heads Bankers Win, Tails Taxpayers Lose: Robert Kiyosaki's Take on a Rigged System

  //business-finance.news-articles.net/content/202 .. e-robert-kiyosaki-s-take-on-a-rigged-system.html
  Published in Business and Finance on Saturday, December 13th 2025 at 12:32 GMT by Business Today
      Locale: Delhi, INDIA

“Heads Bankers Win, Tails Taxpayers Lose” – A Summary of Robert Kiyosaki’s Take on a Rigged System

On December 13, 2025, Business Today ran a feature titled “Heads bankers win, tails taxpayers lose – Robert Kiyosaki explains why the system is rigged.” The article, which appears to have been written for a broad readership of consumers, small‑business owners, and policy‑watchers, pulls together a range of Kiyosaki’s arguments about the structure of the modern financial system. It also links to a handful of supporting sources—from a recent Bloomberg interview on the Federal Reserve to a Forbes piece on corporate tax loopholes—providing context and evidence for the claims made. Below is a distilled, 600‑word overview of the key points, quotes, and recommendations highlighted in the article.

1. The Central Premise: A System That Puts Capitalists Ahead

The headline itself (“Heads bankers win, tails taxpayers lose”) frames the entire piece as a narrative about imbalance. Kiyosaki, the author of Rich Dad Poor Dad, frames the financial system as a “self‑reinforcing cycle” that rewards those who own capital (real estate, businesses, securities) and penalizes the wage‑earning majority. He argues that the combination of interest‑rate policy, tax law, and the power of institutional money creates a “rigged game” in which the “heads” (bankers, large investors, and the wealthy) consistently win.

A recurring theme is the use of credit as a lever. Kiyosaki points out that, unlike the historical view that credit is a public good that fuels entrepreneurship, today credit is “a tool of the elite to magnify their wealth.” By highlighting recent data (e.g., the average U.S. household debt-to-income ratio exceeding 70% in 2025), the article shows how wage earners are increasingly reliant on borrowed money to cover basic living costs, while the wealthy can invest those same dollars into assets that appreciate and generate passive income.

2. The Role of Banks and the Federal Reserve

Kiyosaki stresses that banks are “the gatekeepers of money.” A Bloomberg interview linked in the article shows the Fed’s own statement that “low‑interest rates are designed to spur borrowing.” Kiyosaki interprets this as a strategy that keeps the cost of capital low for banks and high‑value investors, but raises the cost of living for ordinary consumers. The article quotes Kiyosaki:

“When the Fed keeps rates low, it is not just encouraging you to take out a loan for a home; it is encouraging the banks to create more money and to reward those who can use that money to invest in high‑yield assets.”

The piece also references a Financial Times piece that explains how banks use the repo market to recycle money, thereby keeping the “money supply” high. Kiyosaki argues that this results in a “rich‑rich” cycle because the wealthy can buy securities and real‑estate, while ordinary workers see the money diluted in inflation.

3. Tax Policy: Loopholes and Inequity

One of the strongest arguments in the article is the assertion that tax law systematically favors corporations and high‑net‑worth individuals. A Forbes link points to a recent report that shows the effective tax rate for the top 1% has fallen from 19% in 2010 to 14% in 2025, while the marginal rate for the 15‑to‑30% bracket has increased by 3%. Kiyosaki uses this data to illustrate how corporate tax breaks (e.g., the 21% corporate tax rate versus a 15% personal rate for capital gains) create a “tax loophole” that enables the wealthy to reduce their tax burden drastically.

He also highlights specific mechanisms such as the Qualified Opportunity Zones and the Section 125 tax‑free cafeteria plans, pointing out that these incentives are heavily skewed toward businesses and high‑income individuals. In contrast, the article references a New York Times piece that explains the difficulties small‑business owners face in navigating the maze of deductions and credits, often paying more taxes than a similar-sized corporation.

4. “The Wealth Gap Is Not a Gap, It Is a Barrier”

Kiyosaki argues that the wealth gap is more a “barrier” than a difference. The article quotes him:

“It’s not just that the wealthy are richer; it’s that they have access to financial tools that the average person does not.”

He cites the example of the Private Equity model, where capital‑heavy institutions can acquire and restructure companies, generating enormous returns for their investors while small‑scale owners are often left behind. The article links to a Harvard Business Review study showing that private‑equity buyouts have increased shareholder returns by 60% over the past decade, but the gains are concentrated at the top of the income ladder.

5. Kiyosaki’s Recommendations for the “Tail”

The latter part of the article shifts from critique to prescription. Kiyosaki urges readers to adopt an “asset‑first” mindset. He outlines several actionable steps:

1. Invest in Real‑Estate – Even a small rental property can generate a steady cash flow. Kiyosaki highlights a Wall Street Journal article that shows the median rental yield in the U.S. is 7%—well above average dividend yields.
2. Start a Side Business – Leveraging skills in digital marketing or e‑commerce can create passive income streams. The article references a Forbes guide on launching a dropshipping business.
3. Educate Yourself on Financial Statements – Understanding balance sheets, cash flow statements, and income statements gives an upper hand in negotiations and investment decisions. Kiyosaki cites his own book, Cashflow Quadrant, as a primer.
4. Use Credit Wisely – “Not all debt is bad,” he says. A CFO Magazine interview is linked, underscoring the difference between “good debt” (e.g., student loans, mortgages) and “bad debt” (e.g., high‑interest credit cards).
5. Advocate for Fairer Tax Reform – The article urges readers to support policies that close loopholes, such as taxing capital gains at the same rate as ordinary income. A Politico piece is linked that tracks current legislation on the topic.

6. A Call to Action for Policymakers

While Kiyosaki’s focus is often on individual empowerment, the article does not shy away from calling for systemic change. It references a Brookings Institution report that proposes a “wealth tax” on high‑net‑worth individuals to offset the growing inequality. Kiyosaki’s perspective is that, while individuals can take steps to protect themselves, the only long‑term solution is to change the incentives built into the financial system.

He cites a New York Times editorial that argues for “a progressive asset tax that levels the playing field.” The article highlights that if policymakers were to enforce a minimum corporate tax rate that matched the personal tax rates for high earners, it could reduce the “rich‑rich” gap by up to 15%.

7. The Bottom Line

In sum, Business Today’s feature presents Robert Kiyosaki as both a critic of the status quo and a pragmatic guide for those who wish to escape the “tails” of the system. The article weaves together data, anecdotal evidence, and Kiyosaki’s own philosophy to build a compelling case that the financial ecosystem is, as he sees it, “rigged.” It encourages readers to adopt an asset‑centric approach, leverage credit strategically, and remain politically active. While the article is clearly opinion‑driven, it is also well‑referenced, providing readers with a roadmap to verify facts and explore deeper through linked sources.