Why cant “offshore shell corporation” tax avoidance methods used by the wealthy be used by the working class? Is it just because it’s cost prohibitive to set up?

Question

Why cant “offshore shell corporation” tax avoidance methods used by the wealthy be used by the working class? Is it just because it’s cost prohibitive to set up?

In: Economics

Answer 1

There’s logistical reasons. The average middle class has their income made working from a regular job. Which gets a w2. Which is taxed already (called withholdings). A tax avoidance method used by middle class is any worker that is paid primarily in tips. The government doesn’t know how much you get, for example, since it’s cash.