Go Beyond

Only read if you don't mind being offended.


A friend of mine described his views on paying taxes as being bad for him as the government was wholly against him. The way he put it was very well said and got me thinking.

What does the government do for me that is in my interest, as a white male? I'm estimating my tax bracket this year to be 38%, as a contractor living in Idaho. As you make more money you get not only the privilege of paying more taxes, but more taxes yet as you somehow owe more to others at a higher rate. If I pay these taxes, I'm "contributing" what... 5x as much as the average person? Or is it far more? I'm thinking it might even be 10x, I guess I don't know what the average income is though. I don't understand what people are implying by "fair share."

Regardless, what is the money going to? I don't take advantage of government services aside from the roads, which are already covered with fuel taxes. I protect myself. I feed myself. I educate myself. Instead, I'm paying money out of my pocket to take care of other people. People I'll never know. I'm helping import foreigners who I might have no interest in being in my country. Why would I pay for that? What if I just want to take care of me and my own? Why make me take care of anyone else?

So thinking about it, maybe the government really is wholly against me. Paying for it is not in my interest. I don't get anything out of it. Now maybe indirectly. Maybe there's less crime I have to deal with. Maybe some things are cleaner, and a handful of resources are better managed. And I'm not usually a selfish person, I'm pretty modest and trying to become more frugal. I like helping people out who I care about. But the taxes take money away that I could be spending towards those I love and are pulling it to those I don't know.

Despite all this, I even met with a tax attorney to try and manage my taxes better. You can lower your tax rate by roughly the FICA amount if you create an S-corporation and take owner dividends. But their rate to do this was abusrd. I might break even the first year, if that, and only start doing better the second. And if say I was working full time, a W2 employee didn't need my S-corporation, they would charge "only" $700 to file a $0 tax return on my S-corp, for the privilege of having made no money with it.

It goes to show me that there are many clever ways you can lower your tax burden. It's basically about paying off the right person to learn how to do the right dance. The number of ways you can shelter money is insane. You have a huge advantage if you start out with lots of money than if you have to get there, dollar per dollar.

But if the government is wholly against me, and they just print money at will, what am I getting for paying taxes? I could retire so much sooner, or at least be on livable land that's my own, if I didn't. I've heard different stories on what's happened to those who haven't. Some have not filed indefinitely, making nearly 6 figures on 1099's. Others have had assets seized. The way I see it, they can only (easily) go after your electronic wages and bank accounts. So if you were to not pay taxes, you'd want to withdraw to cash/gold/whatever as fast as possible. And when they go after you, be in a position where you can live a 100% cash-based life.

Will I try this instead of just blog about it? Maybe. Should you? Only in Minecraft, of course.