People love to complain about paying their income tax. Wealthy people in particular want to pay as little as possible. There are many ways to reduce taxes without renouncing American citizenship. Savvy investors know how to use the complexity of the IRS code to their benefit. While they may whine and complain about how complicated the law is, secretly they do not really want to change things too much because they would lose the breaks that they now enjoy.
Many people assume that they have to pay more if other people are using all these loopholes and breaks. This is not really the case because most of the money the federal government spends is borrowed. One person's tax deductions and breaks does not effect what another person will owe. The total revenue raised by the IRS is only a very small portion of total government spending.
Many people complain that the IRS code is too complex. Many politicians propose a flat tax. With a flat tax, everybody pays the same rate on all levels of income. The claim is that a system like this is more fair. Without all the special provisions, the government could actually raise more revenue. Those who are sophisticated with their financial affairs like the current IRS code. They can afford to hire lawyers and accountants who can take advantage of a complicated system.
The serious loopholes and provisions in the IRS code apply to business income. People who earn wages or a salary can not take advantage of these provisions. Starting and owning your own business is the only method to benefit from the dark hole that is the IRS code. There are a few items that ordinary working people can use, but it pales in comparison to the way a business can manipulate the complicated laws.
Everyone ought to minimize what they owe to the government by taking advantage of the legal provisions written into law. However, it is not good to get too carried away to the point of making tax avoidance an obsession. Good citizenship requires that people pay their tax obligations. It is the price of citizenship in a nation that encourages entrepreneurship and free enterprise.
The price of our economic freedom is the check we send to the government every April. Of course, nobody enjoys having to pay, but it is our duty as good citizens to pay our fair share. Using the law to one's advantage is perfectly acceptable as long as it is not abused.
The many deductions, loopholes, credits and other provision contained in the IRS code were put there to encourage investment and economic growth. Their purpose is to have members of society behave in an economically rational manner that makes the economy vibrant and strong. Sometimes there may be unintended consequences, but for the most part, these provisions work well.
Sound monetary and fiscal policy will help the economy grow. Understanding the IRS code will enable anybody to reduce taxes without renouncing American citizenship. The real question is if this is an ethical course to take. Each individual must make that decision on their own.
Many people assume that they have to pay more if other people are using all these loopholes and breaks. This is not really the case because most of the money the federal government spends is borrowed. One person's tax deductions and breaks does not effect what another person will owe. The total revenue raised by the IRS is only a very small portion of total government spending.
Many people complain that the IRS code is too complex. Many politicians propose a flat tax. With a flat tax, everybody pays the same rate on all levels of income. The claim is that a system like this is more fair. Without all the special provisions, the government could actually raise more revenue. Those who are sophisticated with their financial affairs like the current IRS code. They can afford to hire lawyers and accountants who can take advantage of a complicated system.
The serious loopholes and provisions in the IRS code apply to business income. People who earn wages or a salary can not take advantage of these provisions. Starting and owning your own business is the only method to benefit from the dark hole that is the IRS code. There are a few items that ordinary working people can use, but it pales in comparison to the way a business can manipulate the complicated laws.
Everyone ought to minimize what they owe to the government by taking advantage of the legal provisions written into law. However, it is not good to get too carried away to the point of making tax avoidance an obsession. Good citizenship requires that people pay their tax obligations. It is the price of citizenship in a nation that encourages entrepreneurship and free enterprise.
The price of our economic freedom is the check we send to the government every April. Of course, nobody enjoys having to pay, but it is our duty as good citizens to pay our fair share. Using the law to one's advantage is perfectly acceptable as long as it is not abused.
The many deductions, loopholes, credits and other provision contained in the IRS code were put there to encourage investment and economic growth. Their purpose is to have members of society behave in an economically rational manner that makes the economy vibrant and strong. Sometimes there may be unintended consequences, but for the most part, these provisions work well.
Sound monetary and fiscal policy will help the economy grow. Understanding the IRS code will enable anybody to reduce taxes without renouncing American citizenship. The real question is if this is an ethical course to take. Each individual must make that decision on their own.
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