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Is the effective tax rate is _primarily_ a function of income, or rather on how much you pay on tax professionals?

• toast0 7y ago
  Tax professionals aren't going to have much to work with if you have a traditional job with a salary. Make sure you take all the deductions that apply and maybe change a couple behaviors to enable more deductions or deferment. To really make a difference in taxation, you need to have the ability to change the character of your income. If you run a tightly held corporation, you can (with some limits) reduce your salary but compensate by paying a dividend, turning more of your income into capital gains. If you run a low employee count company, you can move your income into employer paid 401k contributions, deferring taxes, etc.