2 ms·
Yes. People who disapprove "tax avoidance" or "tax optimization" should reflect on the idea a few years back: High-earning professionals like medical doctors i
by ptaipale 9y ago
Yes. People who disapprove "tax avoidance" or "tax optimization" should reflect on the idea a few years back:
High-earning professionals like medical doctors in a North European country had a very high marginal tax rate (well over 50 %). They also had long working hours. Thus, many opted to reduce their work amount; it's better to take unpaid leave and mend your house, rather than to work in a responsible job, get close to zero net compensation, and have a leaking roof in your house.
This is called tax optimization or tax avoidance.
Now, the government notices this and proposes a "tax on work that was not done with the purpose of avoiding tax". Will you approve?
This kind of mechanisms are what we talk about in tax avoidance and tax optimization.