08-10-2011, 03:35 PM
Back to the original topic, it is not 'evasion' when the loopholes are part of the law.
As Grace pointed out, a small minority of millionaires paid no U.S. income tax because they either:
1. Gave most of that income away via the charitable deduction.
2. Paid foreign taxes and took those taxes as a credit against U.S. tax liability.
I don't foresee the above loopholes being repealed anytime soon.
And where one buys a yacht is a state sales/use tax issue, not a federal income tax issue.
IIRC it was in the news recently that one politician bought their yacht in a different state to avoid the higher sale tax in their home state but I didn't see any of their constituents accusing them of tax evasion.
As Grace pointed out, a small minority of millionaires paid no U.S. income tax because they either:
1. Gave most of that income away via the charitable deduction.
2. Paid foreign taxes and took those taxes as a credit against U.S. tax liability.
I don't foresee the above loopholes being repealed anytime soon.
And where one buys a yacht is a state sales/use tax issue, not a federal income tax issue.
IIRC it was in the news recently that one politician bought their yacht in a different state to avoid the higher sale tax in their home state but I didn't see any of their constituents accusing them of tax evasion.