Re: It takes 10 yrs
 

Actually it's very true.

There can be a lot of argument about fairness of rates, and who receives services, and all of the other social value judgements that our society has to make. There can be no argument though that folks in the top xx% of the U.S. income scale inject the large and disproportionate bulk of income tax revenue to the government. It's really not close.

NTU tables 1999-2003
Analysis of 1999 CBO numbers
2003 NYT graph on gov't tax recepits

The very bottom xx% of income earners are eligible to receive money BACK to supplement their income through the Earned Income Tax Credit (a refundable tax credit) which can "result in a net payment to the taxpayer beyond their own payments into the tax system".

Re: Citizenship Abroad to Avoid Paying Taxes...
 

Better you hire a good accountant. A financial planner, too, if you have enough to owe $100K in US Federal taxes.

Re: It takes 10 yrs
 

[ QUOTE ]
There can be a lot of argument about fairness of rates, and who receives services, and all of the other social value judgements that our society has to make. There can be no argument though that folks in the top xx% of the U.S. income scale inject the large and disproportionate bulk of income tax revenue to the government. It's really not close.

NTU tables 1999-2003
Analysis of 1999 CBO numbers
2003 NYT graph on gov't tax recepits

The very bottom xx% of income earners are eligible to receive money BACK to supplement their income through the Earned Income Tax Credit (a refundable tax credit) which can "result in a net payment to the taxpayer beyond their own payments into the tax system".

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Taking your 2003 NYT graph for example. It is showing a percentage of the REPORTED income. My opinion is that the rich are not reporting their income, they are hiding it in corporations (that are paying a lower tax rate than someone self employed) and various other legal structures before it gets to the point of reporting it.

My point was not made to show an unfairness or put down those that have built wealth (letting the government steal the money that you've made would be unfair) but rather state that Kane has the advantage of having some cash behind him which would allow him to manipulate the system rather than making a permanent decision to give up US citizen ship would could have long term ramifications outside of the tax arena.

Re: It takes 10 yrs
 

[ QUOTE ]

Taking your 2003 NYT graph for example. It is showing a percentage of the REPORTED income. My opinion is that the rich are not reporting their income, they are hiding it in corporations (that are paying a lower tax rate than someone self employed) and various other legal structures before it gets to the point of reporting it.


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No way. First of all, no accountant in their right mind would assist someone in setting this up and then sign off on the tax return and risk going to jail. Also, you cannot "hide your income in a corporation." How do you lay claim on it when you decide to bring it out of hiding without getting busted?

edit

I am sorry I did not realize this thread was a couple of days old when I replied

Re: It takes 10 yrs
 

[ QUOTE ]
How do you lay claim on it when you decide to bring it out of hiding without getting busted?

[/ QUOTE ]

The shadiest I've heard of is a loan from a corporation to the person. Paying the intrest only on the loan at a lower percentage than what the taxable portion would have been if it was a draw or salary payout.

On the not shady level, if you have a company making money you keep a large percentage of the profits inside the corporation (paying a smaller tax fee) until you are retired and then taking the profits when your income is lower. There are many ways to structure your finances above board to limit your tax liability with proper planning, and being rich (having cash on hand) makes this easier to do as opposed to being a working stiff for $10 - $15 per hour.

Re: It takes 10 yrs
 

If it is a corporation there is no single owner. I do not understand how an indivdual can withdrawl profits from a public company. If it was his personal store or company I would understand, but when the company is public the profits are the property of all of the shareholders. Maybe I am not understanding you.

As for your corporate loan part, I agree those are shady. They are what got Tyco in so much trouble with that jerk who held the board hostage for millions in "personal loans" so he could do things like throw a 10 million dollar birthday party for his wife.

Re: It takes 10 yrs
 

You can have a corporation with one or two owners (shareholders). They also don't have to be publically traded.

Re: It takes 10 yrs
 

[ QUOTE ]
You can have a corporation with one or two owners (shareholders). They also don't have to be publically traded.

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Sorry for not understanding you. When you said corporations I thought of the publicly traded ones. It never occured to me you may of meant privately held ones.

Re: It takes 10 yrs
 

[ QUOTE ]

The shadiest I've heard of is a loan from a corporation to the person. Paying the intrest only on the loan at a lower percentage than what the taxable portion would have been if it was a draw or salary payout.


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The problem here is that doing what you are saying is illegal. SEC rules apply equally to private, closely held corporations. Doing things along the lines of what you mentioned is self-dealing, which is an improper abuse of the corporate form.

What many of you are forgetting is that if you are filthy rich, unless you are really greedy or a criminal, there's little reason to conduct these schemes. There are a lot of legal ways to structure your finances so that you can reduce your income tax burden, while keeping yourself out of legal trouble.

Additionally, you are forgetting that even if you theoretically have a corporation hold your money and then take it as income later, the money will be taxed twice - first as corporate income/profit, and secondly as personal income. For those of you saying to yourself, "Who is going to ever find out?" don't think that you are going to get away with it. If you have large amounts of income, you will not be able to easily move it around without anybody noticing eventually. Then the IRS will knock on your door, and you will wish you had just paid the tax!

Re: Citizenship Abroad to Avoid Paying Taxes...
 

are you an only child?

do you have any friends that you dont use a keyboard to talk to?

i'm baffled that someone your age can just up and leave the US and never be interested in returning.