How do you escape income tax?

Question

If your answer is you can't, dont answer at all

Answer 1

Do not earn any taxable income. You can still provide some effort, but it needs to take the form of something exempt from the tax regulations.

You could invest in municipal bonds whose income is exempt from income taxes.

You could also start a church. Their income is exempt from federal taxes as well.

Answer 2

Millions of people pay no tax. These include

1. Any individual who earns less than the filing requirement for his filing status.

2. Any individual with one or two qualifying children who rather than pay tax, get a cash payment from the government, the Earned Income Credit. A single person with one qualifying child and an income of $11,750 would owe no tax and get a cash payment of over $2,700 from the government.

3. A retired or disabled individual whose only income is from Social Security.

4. Any military person whose only income is combat pay.

I'm sure there are many other examples. Many groups of people pay no tax at all.

Answer 3

Well lets see, have a few kids, don't work, work less, lots of ways to avoid income tax. But lets get real our income tax here is a lot less than that of other nations. For example I saw a report recently that income tax in France in nearly 60%. With that in mind I don't think we have it so bad, Considering a portion of our nation doesn't even have to pay taxes because they earn so little, or they have enough money to find or buy all the loop holes they need to avoid certain taxes.

Answer 4

You could more out of the US and formally renounce your citizenship before a US consular officer. Then you are no longer a US citizen of Resident and are not subject to US tax law. You may be subject to taxes in whatever country you move to. This is somewhat extreme and I doubt you will consider it, but is is a legal means of escaping US income tax. The "don't have any taxable income" method works as well. It tends to reduce your standard of living, but is also legal. There are of coarse several illegal methods. I won't detail any of them here.

Answer 5

Earn less than the filing requirement amount for your filing status. If you're a Single filer and not the dependent of another taxpayer, the magic number for 2007 is $8,750 in wages. Good luck surviving on that.

A couple of folks have suggested moving out of the counrty. Sorry, but that won't work either. Most countries that you would want to live in have higher income taxes than the US even if you didn't have to pay US taxes. And the vast majority of them with lower taxes are places you wouldn't want to live anyway.

Answer 6

you need a tax doctor. one who is a combination of a fiction writer with the right premise and knows the law inside out to think you out of a situation. and, oh yeah, you minimize, not escape. or you might want to paraphrase your question to where in the world can you earn and yet not pay taxes? saudi arabia? tax haven countries? take your pick.

Answer 7

i think you probaly earn a lot and not willing to pay the tax based on your earnings.
if you don't mind to go to jail or end up to have paid penalties higher than what you supposed to tax, then there are a lot of ways to escape it . eg don't report your earning honestly and put claims (private hotel bills.., expenses) not supposed belongs to the business ...etc.
You can consult a tax consultant who willing to take the risk for you.

Answer 8

Who pays for all of the government services if no one pays taxes? Let's just close the schools and the police departments and all of the other government funded services and call it a wash.

Answer 9

GE's outstanding fulfillment is in accordance with an aggressive ideas-set that combines fierce lobbying for tax breaks and inventive accounting that facilitates it to pay interest its earnings offshore. G.E.’s extensive tax branch, led via a bow-tied former Treasury good named John Samuels, is usually stated because of the fact the international’s suitable tax regulation corporation. certainly, the business company’s slogan “mind's eye at artwork” fits this branch nicely. The group includes former officers no longer purely from the Treasury, yet in addition from the I.R.S. and intensely just about each and every of the tax-writing committees in Congress. that's all approximately that's offshore earnings and the actuality that they do no longer financial enterprise their earnings right here, yet in tax guard countries like the Bahamas and Switzerland, etc.. In a regulatory submitting only a week until now the jap disaster placed a spotlight on the business company’s nuclear reactor company, G.E. suggested that its tax burden replaced into 7.4 p.c. of its American earnings, a pair of one/3 of the same old suggested via different American multinationals. Even those figures are overstated, because of the fact they comprise taxes which would be paid on condition that the business company brings its distant places earnings back to the US. With those earnings nevertheless offshore, G.E. is effectively getting money back. Such suggestions, besides as alterations in tax rules that inspired some agencies and specialists to report as persons, have pushed down the corporate share of the country’s tax receipts — from 30 p.c. of all federal gross revenues interior the mid-Nineteen Fifties to 6.6 p.c. in 2009. Its outstanding fulfillment is in accordance with an aggressive ideas-set that combines fierce lobbying for tax breaks and inventive accounting that facilitates it to pay interest its earnings offshore. G.E.’s extensive tax branch, led via a bow-tied former Treasury good named John Samuels, is usually stated because of the fact the international’s suitable tax regulation corporation. certainly, the business company’s slogan “mind's eye at artwork” fits this branch nicely. The group includes former officers no longer purely from the Treasury, yet in addition from the I.R.S. and intensely just about each and every of the tax-writing committees in Congress. we could re-write our tax code to close the loopholes. How dare those agencies use the US to guard them and then screw the individuals via playing grasping video games with our financial device.

Answer 10

Leave the country, or demand to you congress person to pass the fair tax act.