LLCs cannot be used to avoid income taxes. The income from an LLC passes through directly to the tax returns of the owners, where taxes on it are due and payabl

LLCs cannot be used to avoid income taxes. The income from an LLC passes through directly to the tax returns of the owners, where taxes on it are due and payable. Same with trusts and trust beneficiaries. Capital gains on investments are taxable as well, although some people can defer paying capital gains taxes simply by not selling until they need to. That does not avoid taxes, but rather defer them until later. If anything "the rich" are subject to additional taxes, notably estate taxes. Irrevocable trusts can be used to reduce estate taxes, but do not reduce income taxes except by having a different person (the trust beneficiary) pay taxes on trust income.