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...the real deal now is get your 4 year degree then take a job on a big yacht as a mate. You will start at $60K/year (tax-free take-home) with room, board and u

...the real deal now is get your 4 year degree then take a job on a big yacht as a mate. You will start at $60K/year (tax-free take-home) with room, board and uniforms included. I love reading Ken's articles. He talks about the weirdest things.

lacerus 16y ago
Can anyone confirm that this is even remotely true? $60K tax-free!?
- Kadin 16y ago
  It's tax-free if you stay outside the U.S. long enough. I believe the limit is 10 months/year, but it might be higher. Of course, that means you're not subject to U.S. income tax, but you might be subject to some other country's income tax depending on where you spent your time. I've met people who work on offshore oil rigs who have (claimed to have) avoided taxes this way, but apparently it is a recipe for an almost guaranteed audit. YMMV.
  - ahoyhere 16y ago
    10 months? Sadly, it's not that reasonable. If you're in the US for 30 days, as a citizen, you have to pay income tax in the US. If you earn more than, I think, $86k outside the US, as a citizen, you have to pay income tax. And either way, you have to file. The law even says you have to file for 10 years after giving up your citizenship! The US sucks.
    - afterburner 16y ago
      US taxes are low.
      - ahoyhere 16y ago
        No, they're not. You start as a self-employed person with the basis of 30% - because employees are subsidized by their employers, you have to pay both shares. That 30% is Federal, FICA, and SS, doesn't include practically any services you can use or that will protect you as a young person. Then there's state tax. And oh yes, if you move overseas, you have to be very careful in arranging your affairs if you no longer want to pay state tax. If you want to vote, for example, you must have residence in a state. If you have residence in a state that has state tax, you have to pay. So we're looking at a base mix of say 35%-45%, depending on how tax-crazy your (former) state is... And for that, what do you get? Nothing. Not healthcare. Not unemployment insurance. In Austria, we pay about 55% - but! - that includes very good healthcare, unemployment insurance (even for self-employed), guaranteed maternity/paternity leave, guaranteed housing if necessary (in a place you'd be happy to live in, with gardens and trees), pension, free higher education including in the fields of medicine and law (student housing and stipends!), and a lot more awesome stuff. I used to pay $600 a month for my American health insurance and still ended up paying $2k when I sprained both my ankles and required several braces, crutches, an ER visit (which took HOURS), and physical therapy. Having used the Austrian system extensively since I got here, I can say that it is better in absolutely every way, even compared to the experience a moderately rich American can buy in the US. Of course both countries allow substantial tax deductions for the self-employed. Deductions in the US are marginally better. Oh, and what if you want to start a company? Or especially if you're unemployed? It's easier in the US, right? Actually, Austria will extend your unemployment benefits and suspend your social insurance payments for an additional 6-18 months if you want to start a business. The myth of American tax superiority is untrue, except for large corporations, and people who can afford and have the balls to maintain genuine tax shelters. Oh yeah. And if you are an Austrian citizen who leaves the country? You don't have to pay taxes. Not even to vote.
        afterburner 16y ago
        So what I'm getting from this is that US taxes are lower than Austrian taxes (you say it right there). Which doesn't exactly disprove my statement that US taxes are low. It doesn't matter that you claim Americans are getting a bad deal on their taxes.

lacerus 16y ago

Can anyone confirm that this is even remotely true? $60K tax-free!?

Kadin 16y ago
It's tax-free if you stay outside the U.S. long enough. I believe the limit is 10 months/year, but it might be higher. Of course, that means you're not subject to U.S. income tax, but you might be subject to some other country's income tax depending on where you spent your time. I've met people who work on offshore oil rigs who have (claimed to have) avoided taxes this way, but apparently it is a recipe for an almost guaranteed audit. YMMV.
- ahoyhere 16y ago
  10 months? Sadly, it's not that reasonable. If you're in the US for 30 days, as a citizen, you have to pay income tax in the US. If you earn more than, I think, $86k outside the US, as a citizen, you have to pay income tax. And either way, you have to file. The law even says you have to file for 10 years after giving up your citizenship! The US sucks.
  - afterburner 16y ago
    US taxes are low.
    - ahoyhere 16y ago
      No, they're not. You start as a self-employed person with the basis of 30% - because employees are subsidized by their employers, you have to pay both shares. That 30% is Federal, FICA, and SS, doesn't include practically any services you can use or that will protect you as a young person. Then there's state tax. And oh yes, if you move overseas, you have to be very careful in arranging your affairs if you no longer want to pay state tax. If you want to vote, for example, you must have residence in a state. If you have residence in a state that has state tax, you have to pay. So we're looking at a base mix of say 35%-45%, depending on how tax-crazy your (former) state is... And for that, what do you get? Nothing. Not healthcare. Not unemployment insurance. In Austria, we pay about 55% - but! - that includes very good healthcare, unemployment insurance (even for self-employed), guaranteed maternity/paternity leave, guaranteed housing if necessary (in a place you'd be happy to live in, with gardens and trees), pension, free higher education including in the fields of medicine and law (student housing and stipends!), and a lot more awesome stuff. I used to pay $600 a month for my American health insurance and still ended up paying $2k when I sprained both my ankles and required several braces, crutches, an ER visit (which took HOURS), and physical therapy. Having used the Austrian system extensively since I got here, I can say that it is better in absolutely every way, even compared to the experience a moderately rich American can buy in the US. Of course both countries allow substantial tax deductions for the self-employed. Deductions in the US are marginally better. Oh, and what if you want to start a company? Or especially if you're unemployed? It's easier in the US, right? Actually, Austria will extend your unemployment benefits and suspend your social insurance payments for an additional 6-18 months if you want to start a business. The myth of American tax superiority is untrue, except for large corporations, and people who can afford and have the balls to maintain genuine tax shelters. Oh yeah. And if you are an Austrian citizen who leaves the country? You don't have to pay taxes. Not even to vote.
      - afterburner 16y ago
        So what I'm getting from this is that US taxes are lower than Austrian taxes (you say it right there). Which doesn't exactly disprove my statement that US taxes are low. It doesn't matter that you claim Americans are getting a bad deal on their taxes.