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by _delirium 5832 days ago
I don't know about other people, but I don't go out of my way to avoid taxes. I certainly don't create new companies or change how I do business in order to avoid taxes. If there's an actual deduction box on a form that I'm eligible for, sure, I'll check it. But I don't really spend days thinking up ways to hide my income. Any time I would've spent on that could be much more productively spent by just making more income.
1 comments

"Any time I would've spent on that could be much more productively spent by just making more income."

Which is actually a good reason to make taxes lower and less burdensome, so the most productive members of our society (as measured by income) will spend their time producing, instead of defending the fruits of their labor from the tax man.

In my experience, the kinds of people who spend the most time on minimizing taxes are precisely the opposite of productive members of society: heirs and heiresses with large assets and passive incomes, but not much real capacity for earning income through their own labors. You generally see complex tax-avoidance trust structures in these "old-money" families much more than you see them in new-money families. For them, it's a rational decision, because the opportunity cost of spending a bunch of time/effort on tax avoidance is low: they aren't wasting time that they would otherwise have put to more productive uses.
Well, it's certainly a reason to make them simpler.

But those same big companies with the same high priced lawyers, accountants and lobbyists never tend to actually advocate for making them simpler. Oh, they might say that in public and at your Ayn Rand book club, but it's not what they say when they're speaking to the congressmen.

EDIT: Hey guys, I wasn't dissing Ayn Rand, don't get so defensive. Just, you know.. who's got a really big interest in making sure people believe all this stuff? Might be worth thinking about.

Big corporations don't actually have an interest in a simple tax code -- more complicated means their accountants give them a competitive advantage.