what strategies do politicians, congressmen use to avoid taxes?
The reason I ask this question is because i want to legally avoid taxes. therefore i thought, why not look to the politicians? For a variety of reasons, I expect taxes to increase in the US. whatever techniques or ‘loopholes’ politicians use are going to be the last ones to be closed (made illegal) because the politicians control the law and no-one wants to tax themselves. I am looking for a technical answer, not sentiments.
i like detailed answers, and i like answers that are well substantiated, i like references. I like links, too.
They pay taxes just the same as everyone else does. There’s nothing unique to politicians as far as taxes are concerned.
I’m not sure what congressmen do to avoid taxes. However, here are some legal things that anyone can do to avoid taxes.
1. Contribute to a retirement plan. If you contribute to a traditional IRA or 401(k), that is an immediate tax deduction. If you contribute to a Roth IRA or 401(k), that means no taxes will be paid in the future when you withdraw the money.
2. Set up a 529 plan if you or your children plan on going to college. A 529 plan basically works like a Roth IRA, the earnings are not taxed. You can set an account up for yourself and transfer it to your children.
3. Itemize your deductions whenever possible. By not itemizing, you are guaranteeing that you will pay the most in taxes.
4. Only file the 1040. By filing the 1040EZ and 1040A, you are ignoring possible tax deductions.
These are just a few things.
Wesley Snipes (movie actor) needs a cell mate. He was avoiding his taxes and recently got three years in federal prison plus paid a $5 million dollar fine.
Anything that is available to a politician is available to you.
You won’t get a “technical answer” because there isn’t one. They pay taxes the same as you and I.
They pay taxes just the same as everyone else does. There’s nothing unique to politicians as far as taxes are concerned.
soakaways