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And this is why there's a distinction between "tax avoidance" and "tax evasion". Tax avoidance refers to using legal means to reduce your tax bill. Tax evasio
by amyjess 12y ago
And this is why there's a distinction between "tax avoidance" and "tax evasion".
Tax avoidance refers to using legal means to reduce your tax bill.
Tax evasion means illegally not paying your taxes.
- baddox 12y agoYeah, and "dodging taxes" doesn't clearly distinguish between the too. Also note that a lot of people oppose perfectly legal tax avoidance techniques that they consider to be loopholes.
- amyjess 12y agoAgreed. I was going to put something in my post like "and that's why a good argument will make it clear which one you're talking about", but I ended up forgetting to put it in. Also, tax avoidance is just plain smart. Any for-profit business that doesn't practice tax avoidance is just throwing away money.
- jakobegger 12y agoPaying taxes is not throwing away money, its contributing back to the society that you profit from. Contributing as little as legally possible is not 'sensible' it's greedy.
- Guvante 12y agoNot charging sales tax is technically legal but certainly a grey area. Since almost every state that has a sales tax has a use tax you are just shifting the burden of reporting onto your consumer. The reality is most people don't report (or under-report) their required use tax so you are really assisting them in committing tax evasion. So while not directly illegal, certainly not fully legal.