4 ms·

I think you are confusing tax avoidance, which is a perfectly legal strategy with tax evasion, an illegal action. When you make the strategic decision to make a

I think you are confusing tax avoidance, which is a perfectly legal strategy with tax evasion, an illegal action. When you make the strategic decision to make a charitable contribution in December in order to pass the threshold for deductibility and thereby reduce your personal taxes, that is legal avoidance. Businesses do the same in order to maximize returns to all stakeholders. There is nothing unscrupulous or immoral in doing so. Paying taxes is not synonymous with being nice. Filing a business tax return and paying all taxes owed is a legal obligation. Filing a personal return, if you owe taxes, is a personal obligation. If you do not owe taxes, you are not obligated to file a return; however, it is required if you would like to receive the refund you are owed. There is no legal obligation to run your business in a way that maximizes taxes due to the government and no business operates in such a manner. I seriously doubt you could find many, if any, personal returns where a filer completes their return in a manner to pay the most taxes they can by ignoring legal deductions, credits, etc. Nice has nothing to do with it.

cisanti 9y ago
It has everything to do with nice. If you use loopholes then you're not nice, you just know how to make more profit. It doesn't make you nice, only less noble and honest. Something being legal doesn't mean it's nice.
- botnik 9y ago
  Surely, the same can be said 'it doesn't make you not nice, by doing something which the state considers illegal'. The assumption that the state has everyones best interest at heart is nonsense. In the UK it's becoming more apparent that the state is a considerable part of the problem. Arbitrary rules set by states is not a moral barometer.
- valuearb 9y ago
  It's nice and honest to follow the law. Paying the minimum amount of taxes possible is following the law.
- Powerofmene 9y ago
  Following the law is not only nice but should be expected. Minimizing your tax liability is within the law, therefore nice IMHO. After working closely with IRS audit examiners for 4 years, Believe me, IRS agents are thrilled when people pay what they owe and use all legitimate available deductions/credits. It is when you utilize deductions and credits that are not legitimate that they become not so nice. If they catch you submitting a false return, they will hit you with additional taxes, penalties and interest (and depending on extent of the false submissions, potentionally tax evasion charges). I once had an auditor tell me that they are more suspicious of those who do not minimize taxes as they were those who fail to report income that the IRS is aware of but unreported on the return. Those who do not claim legitimate deductions are looked at as hiding something big per one examiner. She also stated that IRS examiners know all the "tips" for minimizing tax due and they certainly utilize every one applicable to their individual circumstances. Oh and just as an aside, if you want to help the country beyond paying the minimum taxes that you legally owe, at any time a person can mail a check to the US Treasury with a letter that you would like said payment to be applied to deficit reduction.

cisanti 9y ago

It has everything to do with nice. If you use loopholes then you're not nice, you just know how to make more profit. It doesn't make you nice, only less noble and honest. Something being legal doesn't mean it's nice.

botnik 9y ago
Surely, the same can be said 'it doesn't make you not nice, by doing something which the state considers illegal'. The assumption that the state has everyones best interest at heart is nonsense. In the UK it's becoming more apparent that the state is a considerable part of the problem. Arbitrary rules set by states is not a moral barometer.
valuearb 9y ago
It's nice and honest to follow the law. Paying the minimum amount of taxes possible is following the law.
Powerofmene 9y ago
Following the law is not only nice but should be expected. Minimizing your tax liability is within the law, therefore nice IMHO. After working closely with IRS audit examiners for 4 years, Believe me, IRS agents are thrilled when people pay what they owe and use all legitimate available deductions/credits. It is when you utilize deductions and credits that are not legitimate that they become not so nice. If they catch you submitting a false return, they will hit you with additional taxes, penalties and interest (and depending on extent of the false submissions, potentionally tax evasion charges). I once had an auditor tell me that they are more suspicious of those who do not minimize taxes as they were those who fail to report income that the IRS is aware of but unreported on the return. Those who do not claim legitimate deductions are looked at as hiding something big per one examiner. She also stated that IRS examiners know all the "tips" for minimizing tax due and they certainly utilize every one applicable to their individual circumstances. Oh and just as an aside, if you want to help the country beyond paying the minimum taxes that you legally owe, at any time a person can mail a check to the US Treasury with a letter that you would like said payment to be applied to deficit reduction.