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Plan to Not Pay Taxes

paying taxes

You Have to be in It to Win It

“The only difference between death and taxes is that death doesn’t get worse every time congress meets.”
– Will Rogers

Tax Code

In a wacky election year, a major disappointment is that none of the tax policies being discussed are original, fresh or even thought provoking.  The same old ideas get hashed and rehashed without much progress or thought as to what is the purpose of the tax code.

Every tax is a disincentive and any tax cut or credit is an incentive.  As long as we are talking about the same basic structure of the tax code, adjustments to rates have no impact on the inherent disincentives and incentives in our current tax code.  Given that no one is happy with the growth prospects in our current system, we should be looking at a system that creates new disincentives and incentives geared towards getting us growing in a healthy fashion.

In Plan to Not Pay Taxes, I identify strategies to take advantage of the incentives that Congress has laid out there for us to address our own looming retirement crisis.  This is grounded in the 5Ps, Prior Preparation Prevents Poor Performance.

Many of our existing taxes, cuts, credits and government payments are based on a world that no longer exists.   One example are the fees paid for grazing, timber and mining rights on Federal Land were set over a hundred years ago – my bet is that a market based system might spur more productive use of these resources.   Why do some farmers receive significant payments to grow or not grow certain crops while others are left out of the system altogether?  Why do some companies receive marketing support while others are left to fend for themselves?   Why are we subsidizing 20th century businesses instead of incentivizing 21st century businesses?  We should have a tax code that provides incentives for modern growth opportunities and disincentives for 20th Century policy objectives.  I would like to hear from you as to existing taxes, cuts, credits and government payments that you think are superfluous in our current environment.

An idea that always makes me chuckle was brought up to me by a friend in Greece as they grapple with introducing a modern tax code to incentivize people to pay their taxes.  In order to provide a greater incentive for people to pay taxes, why not give someone an entry for every dollar in taxes paid in a weekly $1 million lottery.  For the cost of $52 million dollars a year the government would dramatically increase their tax collections and people would have a little more enjoyment when they pay their taxes.  That’s called tax humor – not very funny but at least worth a chuckle.  N.B. We actually spend over a billion dollars per week on lotteries in the US – more than movies, books, sports and other entertainment combined. 

Remember, what the government gives, it must first take away.

You Have to Pay Taxes

You Have to Pay Taxes – But You Don’t Need to Leave a Tip

You Have to Pay Taxes – But You Don’t Need to Leave a Tip

I’m proud to pay taxes in the United States; the only thing is I could be just as proud for half the money.
– Arthur Godfrey

When I wrote my new bestselling book, Plan to Not Pay Taxes, the last thing I expected was the outrage of a few commenters about how not paying taxes was not moral and ethical or how important it was that everyone pay “their fair share.”  Other than in cases of splitting a piece of chocolate cake by allowing the non-slicer to choose their piece or in a call-it-in-the-air-no-touch coin flip, there are very few objective sources of fairness in life.  When it comes to taxes, the only logical source is the tax code itself which in this case involves the US Tax Code.  While I am not aware of many people who enjoy paying their taxes, most people feel that they are paying their fair share if they pay what the tax code tells them they owe. 

I certainly can’t tell you I understand the logic or motivations of the US Congress in much of anything they do.  However, in the provisions of the tax code that allow you to generate tax free income for up to half of your adult life, Congress is trying to help those that follow its guidance to overcome the looming retirement crisis in the United States.  Congress says it’s ok to plan to not pay taxes.

Whether you plan to not pay taxes but want to contribute some to the government or just feel like you are being taxed too lightly, you are entitled to send additional money to the treasury as a contribution to reduce the debt.  For those who expressed moral and ethical outrage at the idea of planning to not pay taxes, you can go to pay.gov to pay via credit card or electronic transfer or send a check to the Bureau of Fiscal Service, Attn Dept G, Bureau of Fiscal Service, PO Box 2188, Parkersburg, WV  26106-2188.  Since 1996, individuals have contributed just over $50 million to reduce the debt (about $2.5 million per year). During that time the debt has risen from slightly over $5 Trillion to over $19 trillion

For everyone else, Plan to Not Pay Taxes provides you a guide to not participate in your own retirement crisis.