[Neil44]

In principle it sounds like a reasonable idea but the obvious problem is that people can become domiciled elsewhere, or structure their income to avoid this. It would be interesting to know what's been planned to mitigate that.

[Jemaclus]

how can i structure my income to avoid income tax? asking for a friend.

[drdec]

A popular technique is to be compensated in options. Don't exercise the options, but take out loans against them.

[pc86]

This is incredibly tech-specific, where most workers make a small fraction of $1M a year.

Physicians don't get options, attorneys don't get options. This is a fairy tale answer not grounded in reality.

[drdec]

So what is your answer then?

[pc86]

I don't need an answer to point out that your response is relevant to probably 3 or 4 people every year who:

    - live in Washington State; AND
    - are compensated at least in part in options; AND
    - are compensated in excess of $1M a year; AND
    - are compensated far enough in excess of $1M a year that they are willing to spend time and money lowering that tax liability

But the answer is "you can't, at least not legally" for everyone except those few people.