Do they just not file paperwork and then bribe a judge? Are their taxes so complicated that even the IRS gives up? What the hell, man…
In: Economics
Hold your wealth in assets and don’t liquidate. Taxes are typically only due on realized gains. So if you bought a piece of land or company share that has appreciated and continue to hold it, your “net worth” (which is kind of a BS estimate generally speaking) goes up but you don’t pay taxes.
Buy US treasuries (if you are a US tax resident) – anyone can do this. Take loans if you need cash using assets as a pledge. A wealthy person does not rely on salaries and wages. Hence their “income” taxes will be low relative to their total wealth.
Nonetheless, it is not true that they don’t pay taxes – the rich pay most of the income taxes in the US. Your political or moral inclinations determine if you believe this is too much or too little but the objective numbers still hold. It is also true that other (non income) taxes are far less progressive and this burden doesn’t fall on the wealthy as much.
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