Taxes are killing me...

Discussion in 'Legal Issues' started by S2X, Dec 8, 2005.

  1. uca

    uca Well-Known Member

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    #101
    WOW, it's tough.

    You don't understand that I am NOT against taxes, I simply want society to evolve and hopefully in the future we'll (or our descendants rather) manage to figure out a way of avoiding the need for taxes.

    That would be a gigantic step forward for the human society.

    At present I am not against taxes, if reasonable, only because we can't do without them.

    Again, for instance, around the world people criticize the US for how health care is financed, but it works better than in most of those countries but they usually fail to acknowledge that. Of course it's not perfect and it needs improvement, but it works way better than many prob said before the system was implemented.

    AGAIN, I AM NOT AGAINST TAXES NOW!

    In the future, yes I am against taxes in the future society, and this should inspire nowadays politicians and experts in order to start thinking if, how and when we can cancel taxes in the future, with a little step being tax reduction. And I'm happy to say that the Reps, and not the Dems are going that way, a bumpy way for sure!
     
    uca, Dec 19, 2005 IP
  2. raycampbell

    raycampbell Peon

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    #102
    If the plan is to hide the money you are making from the US government, forget it. You can, and very possibly will, go to jail for doing that. If the plan is to legally minimize your taxes by setting up appropriate corporate structures, that can work to reduce or delay taxes (a lot of big companies do it), but the overhead costs are high and in the end you will still have to pay taxes on any and all dollars you bring home.

    As an individual living in the US, you have to pay US taxes on all worldwide income to you individually. Period. The money can go to a bank in Panama or Switzerland, but you still need to pay US taxes on it.

    As an individual living overseas, you need to pay taxes to both the US and the foreign country unless there is a bilateral agreement with your host country and the US, in which case you pay taxes to one, not both. (In my case, tax genius that I am, I am living overseas and paying higher than US taxes to a foreign jurisdiction).

    Then there is the situation of setting up a corporation. If you pull the money out of the corporation, you will pay taxes on it. What level of taxes, and what taxes you are responsible for if you just leave the money sitting in the bank account of the offshore corporation, I certainly don't know and so far as I can tell you are going to need to talk to a qualified, non-shady tax lawyer or accountant to get a handle on it. It may depend on the kind of corporation, etc., etc.. The kind of people who reliably answer these kinds of quesitons do not work cheap, so you need to be talking substantial earnings (well into six figures, I would say) before it even becomes worth thinking about.
     
    raycampbell, Dec 19, 2005 IP