[dalke]

Are you seriously planning to make $1 million in one year, with the expectation that you would make no income for the following 5 years? That is a very uncommon scenario. I expect you may need to consult a CPA or someone else with specialized knowledge on how to do this most cost effectively.

You say "it's not that easy", but that's besides the point. If you think you can save 10% of $1M than that $100K can buy you a lot of CPA time to make the problem become easy.

"if I make $1 million, I withdraw $1 million (which is the goal),"

Ahh, you want the fantasy of not paying taxes at all. Why should the state limit your liability in exchange for nothing?

If you really have flood/drought income, then talk to a CPA about how to spread your personal tax liability across multiple years. You can't be the first with these problems. Eg, low income people have to deal with capital gains from selling a house.

In that vein, you said nothing about my second point, on retained earnings.

[montbonnot]

retaining earnings is a solution. And you're right I didn't mention it. Another solution is less taxes which sounds more reasonable to me. As I said at the beginning of this thread, Republicans seem to understand the problem and have a proper solution to it in order to avoid making other people richer trying to work around the legal system (e.g. CPA).

[dalke]

And as I said, "40% tax? Sounds about right. So long as there are good social services."