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Legally pay no tax
Posted: Thu Feb 25, 2016 3:10 pm
by NYGman
Found this article this morning, and it just go to show you, 77.5MM people legally pay no federal tax, and that they do it completely legally. They have managed to untax themselves, and the IRS is fine with it. However, these people usually make little to no money each year, and likely receive some form of public assistance, but it shows it can be done. So given this, I am going to start my new Guru class on how to legally de-tax yourself, in a 2 steps. 1) Quit your job and 2) Sell everything you own, and at a loss if capital gains would apply.
http://nypost.com/2016/02/24/45-percent ... ncome-tax/
Many Americans don’t have to worry about giving Uncle Sam part of their hard-earned cash for their income taxes this year.
An estimated 45.3 percent of American households — roughly 77.5 million — will pay no federal individual income tax, according to data for the 2015 tax year from the Tax Policy Center, a nonpartisan Washington-based research group. (Note that this does not necessarily mean they won’t owe their states income tax.)
Roughly half pay no federal income tax because they have no taxable income, and the other roughly half get enough tax breaks to erase their tax liability, explains Roberton Williams, a senior fellow at the Tax Policy Center.
Re: Legally pay no tax
Posted: Thu Feb 25, 2016 3:22 pm
by Cpt Banjo
NYGman wrote:Found this article this morning, and it just go to show you, 77.5MM people legally pay no federal income tax
Fixed it. Those folks that work still pay federal employment taxes.
Re: Legally pay no tax
Posted: Thu Feb 25, 2016 3:49 pm
by Gregg
Or you can invest everything you own in double tax free muni bonds....which is the real "secret of the rich to not pay taxes"
If you have a few million to start with, you can make a pretty decent living that way....but, if you have that kind of money you can almost always deploy it in such a way as to make more on it, even after paying the taxes, instead.
Re: Legally pay no tax
Posted: Thu Feb 25, 2016 3:56 pm
by LaVidaRoja
Too many people let the tax tail wag the economic dog.
Re: Legally pay no tax
Posted: Thu Feb 25, 2016 4:15 pm
by Burnaby49
That little scam has been around in Canada forever too and the Canadian government is desperately trying to keep the public from finding out about it. Sleep in back alleys, rummage through dumpsters to dine, and you'll live in a tax-free paradise. Given the cost of housing in Vancouver most people are half-way there already.
Wouldn't work for me unfortunately. Mrs. Burnaby49 just doesn't understand high finance and insists on having frivolous luxuries like a place to live and a guaranteed three squares a day.
Re: Legally pay no tax
Posted: Thu Feb 25, 2016 4:57 pm
by The Observer
Except none of our usual suspects ever choose to follow that particular plan voluntarily. This seems to be the strange result of their overdeveloped sense of entitlement. So that is the reason for my push for the government to give our Freemen/sovruns what they are really asking for - freedom - and to deliver them to some remote place where the tentacles of government does not reach: the deep part of the Amazon rain forest, the outer fringes of the Northwest Territory, or Somalia.
Re: Legally pay no tax
Posted: Sun Feb 28, 2016 6:39 am
by Gregg
The Observer wrote:Except none of our usual suspects ever choose to follow that particular plan voluntarily. This seems to be the strange result of their overdeveloped sense of entitlement. So that is the reason for my push for the government to give our Freemen/sovruns what they are really asking for - freedom - and to deliver them to some remote place where the tentacles of government does not reach: the deep part of the Amazon rain forest, the outer fringes of the Northwest Territory, or Somalia.
I hear North Korea is especially enchanting for those who hate government officials during Defense Ministry Official Season...they can use bows, flint locks, and rifles, but the favorite weapon this year seems to be anti-aircraft gunnery.
Re: Legally pay no tax
Posted: Sun Feb 28, 2016 6:21 pm
by JamesVincent
I often wondered why the morons never figured out that if you actually use the system, chances are you owe nothing anyway and could even get money back from the big mean government. I make just enough money (on paper
) that by the time I deduct the kids and any expenses I owe nothing. In fact if I was not still fighting with the IRS over their screwups I would get a check back every year from EIC, having 3 kids is a benefit sometimes.
Re: Legally pay no tax
Posted: Sun Feb 28, 2016 7:18 pm
by noblepa
Gregg wrote:Or you can invest everything you own in double tax free muni bonds....which is the real "secret of the rich to not pay taxes"
If you have a few million to start with, you can make a pretty decent living that way....but, if you have that kind of money you can almost always deploy it in such a way as to make more on it, even after paying the taxes, instead.
But, aren't you really paying a tax in the form of a lower return on investment? If I could earn, say, six percent on a taxable investment, but only four percent on a tax-free muni bond, aren't I, in a sense paying a 33% tax? Granted, I am paying it to the municipality and not the federal government.
The other side of that coin is that, if the bonds were not tax-free, the municipalities would have to pay higher interest rates.