Archive for 'taxation'

7 Ways To Pay Little or No Income Taxes and Achieve More Freedom

Monday, June 4th, 2012 at 10:28 am  
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Introduction: To take away a man’s property against his will is theft. Taxation is legalized theft. It is a way to take the property from some people and give it to others.

1. Part-Time/Full-Time Business

This is the “business expense deduction method”. Form a part-time or full-time business and convert personal expenses into business expenses. Write-off everything you can. With a little creativity you can whittle your net taxable income down to little or nothing. Read this Case Study for an extreme example.

2. Independent Contractor

If you work for an employer ask if you can quit and be re-hired (through your LLC or virtual corporation) as an Independent Contractor. This eliminates income tax withholdings from your paycheck and it works perfectly with the deduction method in #1 above.

3. Mini-PT

Eliminate your State Income Tax by changing your “official State residence” to a State where there is no personal income tax. See our Members Area for more information.

4. Foreign Address

Eliminate both State and Federal Income taxes by changing your “official residence” to one in a country that has no income tax. The list of countries is not constant but here are a few places to start your research: Andorra, Anguilla, The Bahamas, Bahrain, Bermuda, Cayman Islands, Cook Islands, Djibouti, Monaco, Turks and Caicos Islands, and Vanuatu.

U.S. Citizens who have an official residence – and earn their income – outside the U. S. have a “foreign earned income tax exclusion” of $91,500. A husband and wife could each qualify for the exclusion and effectively exclude $183,000 of foreign earned income from taxation.

5. Permanent Tourist & Privacy Technologist

Have no official residence or taxable income. Become a “Permanent Tourist”. Tourists are usually treated better than residents. Always be from “somewhere else”. If your passport is from country “A” spend your time in countries “B”, “C” & “D”. Read our “PT” books in our Members Area for details on this strategy.

6. Personal Secession – Expatriation

To “secede” is “to withdraw formally from an alliance, federation, or association, as from a political union…”. You can do this formally through expatriation or informally by simply declaring your independence and providing for your own protection. Expatriation involves formally renouncing your citizenship and obtaining a citizenship in a country that offers you a better tax deal. Click here to learn more about this option.

7. Declare Your Independence and become an Autarchist

Self Rule (Autarchy) includes but is not limited to: self-ownership, self-government, self-sustenance, self-control, self-mastery, self-reliance, self-defense, rational self-interest, self-improvement, self-esteem and personal responsibility. This means eliminating any dependence you may have on pretended “external authorities”.

The Autarchist does not participate in plunder. He does not use the ballot box to steal from – or force his will upon – his neighbor. This means he does not vote. Where he has the choice he rejects all public handouts and “government benefits”. He knows that they are paid for out of stolen property (taxes). This includes Social Security, government welfare, government subsidies, public education, government police protection, etc. If he has a problem with his neighbor he works it out. He never calls the police.

The Autarchist provides for his own sustenance and self-defense. He recognizes and respects the power of the State (which is made up of nothing more than the majority of his neighbors who authorize State plunder against him). He only engages them when he has no other choice. He most likely utilizes several of the previous six strategies. He keeps his personal financial affairs private. He minds his own business.

In providing for his own defense he uses tools and strategies that protect him from these predators. These tools and strategies include Invisible LLC’s, virtual corporations, encryption, and alternate currencies. He is most likely an Agorist who engages in Counter-Economic activity. He respects property rights which means he respects human life. He knows what it means to be free.

Special Report: Tax time pushes some Americans to take a hike

Wednesday, April 18th, 2012 at 8:11 am  
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Story from Reuters:

Genette Eysselinck, who renounced her U.S. citizenship to become Belgian, poses in Place de la Comedie in Montpellier April 11, 2012. REUTERS/Pascal Parrot

By Atossa Araxia Abrahamian

Mon Apr 16, 2012 12:34pm EDT

(Reuters) – A year ago, in Action Comics, Superman declared plans to renounce his U.S. citizenship.

“‘Truth, justice, and the American way’ – it’s not enough anymore,” the comic book superhero said, after both the Iranian and American governments criticized him for joining a peaceful anti-government protest in Tehran.

Last year, almost 1,800 people followed Superman’s lead, renouncing their U.S. citizenship or handing in their Green Cards. That’s a record number since the Internal Revenue Service began publishing a list of those who renounced in 1998. It’s also almost eight times more than the number of citizens who renounced in 2008, and more than the total for 2007, 2008 and 2009 combined.

But not everyone’s motivations are as lofty as Superman’s. Many say they parted ways with America for tax reasons.

The United States is one of the only countries to tax its citizens on income earned while they’re living abroad. And just as Americans stateside must file tax returns each April – this year, the deadline is Tuesday – an estimated 6.3 million U.S. citizens living abroad brace for what they describe as an even tougher process of reporting their income and foreign accounts to the IRS. For them, the deadline is June.

The National Taxpayer Advocate’s Office, part of the IRS, released a report in December that details the difficulties of filing taxes from overseas. It cites heavy paperwork, a lack of online filing options and a dearth of local and foreign-language resources.

For those wishing to legally escape the filing requirements, the only way is to formally renounce their U.S. citizenship. Last year, IRS records show that at least 1,788 people did, and that’s likely an underestimate. The IRS publishes in the Federal Register the names of those who give up their citizenship, and some who renounced say they haven’t seen their name on the list yet.

The State Department said records it keeps differ from those published by the IRS. They indicate that renunciations have remained steady, at about 1,100 each year, said an official.

The decision by the IRS to publish the names is referred to by lawyers as “name and shame.” That’s because those who renounce are seen as willing to give up their citizenship primarily for financial reasons.

There’s also an “exit tax” for the very rich who choose to leave. During the last 25 years, a number of millionaires and billionaires have renounced their citizenship. Among them: Ted Arison, the late founder of Carnival Cruises, and Michael Dingman, a former Ford Motor Co. director.

But those of more modest means renounce, too. They say leaving America is about more than money; it’s about privacy and red tape.

LIABILITY, NOT PRIVILEGE

On April 7, 2011, Peter Dunn raised his right hand before a U.S. consular officer in Toronto and swore that he understood the consequences of giving up his U.S. citizenship. Dunn, a dual U.S.-Canadian citizen who has lived outside the United States since 1986, says he renounced because he felt American citizenship had become more of a liability than a privilege.

As an American, Dunn had to file tax returns and report all of his bank accounts – even joint accounts and his Canadian retirement fund. If he didn’t, he would be breaking U.S. law and could face penalties of up to $100,000 or 50 percent of his undeclared accounts, whichever is larger. Dunn says he was tired of tracking IRS policy changes, and he had no intention of returning to the United States. Renouncing his citizenship, as he puts it, was “a no-brainer.”

“If it was just me then it would be one thing,” says Dunn, a part-time investor who worried that having to share information with the IRS would deter future business partners – and upset his wife, who is Canadian. “Disclosing joint accounts I hold with my wife and anyone I ever want to do business with – that’s just too much. My wife’s account is none of their business.”

Dunn, who blogs about expatriation, takes issue with being characterized as a tax evader. He says the taxes he pays in Canada are higher than what he would pay in the United States, and he says he had always complied with the IRS before renouncing. But, Dunn says, the IRS approach to enforcing compliance is misguided. “It’s making life difficult for a lot of people,” he says. “It’s driving us away.”

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I’m Allowed to Rob You

Thursday, February 2nd, 2012 at 8:22 am  
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Taxation by Citation

Monday, December 12th, 2011 at 11:01 am  
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by John Brennan

From LewRockwell.com:

Years ago, at its inception, the Internal Revenue Service, was duly deputized as the primary government agency responsible for collecting all personal and business taxes. The IRS, as it is referred to by most, has, over the years, grown into a mammoth operation. Steadily and methodically expanding, and with the use of new technology, has become very, very proficient at keeping track of what working Americans earn, and conversely, how much earnings should be returned to feed the king’s coffers. With so many financial transactions now recorded electronically, it is very difficult indeed to conceal real income and avoid any tax liability. The long tentacles of the IRS have extended into the purses and pockets of every working stiff. These tentacles act like powerful vacuum hoses, sucking every last penny they possibly can in order keep the wasteful wheels of government grinding away . But apparently the government needs even more from us. So now, in addition to employees of the IRS collecting tax revenue from us, another group of government extortionists has been deputized to perform this task. ; the men and women of law enforcement. Yes folks, cops have become the new ugly face of taxation here in America.

Two years ago I happened to be near a municipal court building in southern California that dealt solely with traffic infractions; no criminal cases were heard here. Out of curiosity , and having a little free time, I decided to sit in one of the courtrooms and observe the proceedings. Straightaway, I was amazed at how crowded all four courtrooms were. This was a Thursday morning at about 9:00 am, and all four of them were busy attending to overflow crowds. The place was really jammed; the walls lined with all manner of folk; cash and checkbooks in hand , waiting impatiently to lay payment at the foot of the king. I randomly chose one of the courts without thought, and was lucky to find a seat in the rear. I sat there for the next hour as case , after case, after case, after case was called up to the judge. What I witnessed was astounding.

It goes without saying that, over the years, prices on consumer goods have increased substantially, so we can fairly assume that the cost of human error has also gone up. By human error, I mean the price one must pay when cited for an infraction while operating a motor vehicle here in California. A mistake, or error while driving will quite often attract the attention of some observant law enforcement officer sworn to keep an eye out for those violating any one of the thousands of traffic laws now on the books. Today , there are so many things that are against the law, we can barely keep track of what we can and can’t do. No seatbelt; using a phone ; cracked tail light lens; burned out bulb, etc., etc., etc. That’s just on the vehicle. Then, of course, we have the moving violations: Running a red light; running a stop sign; unsafe lane change; and probably the most common, speeding. In the past, I have been the unlucky recipient of my share of traffic tickets, but have not had one in more than ten years. I was last cited for not coming to a complete stop at a stop sign. I didn’t fight the case and reluctantly paid the $40.00 fine. And the amount was just that; $40.00. I thought that it was a bit high, but at the time, I remember not feeling overly gouged. Today, that same fine would be $280.00 dollars; quite an increase in just ten years. As I sat in that court, I could not believe how expensive fines have become. Running a red light is now $425.00. Not signaling; $140.00. Five miles over the speed limit in a school zone sucks you of $530.00 .I listened to the judge on almost 50 cases in that brief time and roughly estimated the state of California took in about $50,000.00 dollars in that one hour. The assessed amount for fines was astronomical. But now you pay not only the fine, they also throw in the court costs. You pay for the cost of the court to collect that fine from you. And these fees have also become absurd. To now settle my $40.00 ticket , I would be charged another $35.00. Which simply says one thing, and one thing only: traffic fines have become an incredible source of revenue for the states. I say states because I am sure it is the same across the country. So, by applying simple logic, we can deduce that the more tickets issued, the more income for the state. It doesn’t take a genius to see writing tickets has become very profitable indeed. There’s a lot of money in traffic fines. And right now, every municipality across the country is in desperate need of every last cent they can lay their greedy little hands on. Which clearly translates to: More tickets.

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