Tax Avoidance - be the oddball

How does one achieve tax avoidance? There are many ways, but one sure way is to be the oddball.

The primary theme of taxation is to create a financial burden on a large portion of the population, such that nearly everyone pitches in to help do the heavy lifting. That's why taxes aren't based on a cause and effect relationship, they're based on what most people are doing.

So, be the oddball, and you can avoid taxes that the majority are saddled with. I'm not saying that being the oddball will always be easy or fun.

But, you can certainly avoid much of the tax we pay by changing your lifestyle to be contrary to the masses.

A Tax Avoidance Lifestyle

The biggest tax burden we have is on our income, followed by sales tax and then real estate taxes. All the other fees, licenses and fines are "noise" by comparison, so let's see how we might avoid taxes in the three major areas.

Tax avoidance isn't hard if you use a little imagination and are willing to change your lifestyle to be the oddball out there doing your own thing.

Income tax can be minimized by lowering your gross income, moving to state free of income tax, maximizing deductions, and operating a business where expenses effectively negate your income.

Sales tax can be minimized by living in a state that doesn't tax groceries, and do most of your shopping at private party sales where sales tax isn't collected. I know people that don't shop at department stores, so they pay almost nothing in sales tax.

To avoid property tax, you simply have to rent. This can wind up being more expensive than buying, and it can also be a hassle as well, but with a little imagination and effort, it can be done at little or no cost. Perhaps you could find someone who is willing to trade rent for your services as an apartment manager, or someone who would like to have a quiet and helpful renter to help defray the cost of living in a large home that has it's own separate wing.

Cost versus Benefit

Everything has it's price. Being the oddball for the sake of tax avoidance might not be right for you, but it will work for some.

For those who travel for a living, such a lifestyle wouldn't be difficult to do. If you're constantly traveling, then it could be far less important where you live and what kind of place you keep your things in while you're on the road.

Many of us are trapped in the idea of a traditional lifestyle. It's part of our culture. We just can't help but think that way sometimes simply because it's all we've ever known.

Thankfully there are many among us who recognize that we're responsible for our own lives and our own happiness. Our life is the result of choices we've made. We don't blame others. What we do instead is make a cost versus benefit evaluation and make different choices when we desire a different outcome.

Let's not fall prey to being conformists when we have freedom of choice. It's our government, so they're our taxes, but we still have freedom of choice as to how we might fit into the overall scheme of things.

Remember that tax avoidance is legal, while tax evasion is not. I'm happy to practice tax avoidance by changing my lifestyle simply because taxes are legalized theft of my wealth and I don't like that one bit.

Done with Tax Avoidance, back to Taxes