Why JFK Said Avoiding Taxes is Patriotic & Good for America

tax planning, avoid taxes, small tax business,

President John Kennedy (Democrat) is the most respected president of last century. The President and Supreme Court Justice Hand agreed that patriotism does not mean paying more than your legal share.
Supreme Court Justice Holmes said tax planning means you get as close to that legal line as possible

John F. Kennedy stated,  “My fellow Americans, ask not what your country can do for you, ask what you can do for your country.”

He also said that  “Every dollar released from taxation that is spared or invested will create a new job and a new salary.”

You, the business owner, are the only one that creates real jobs. The more you avoid taxes, the more jobs you can create.

If you are the employer, you expand your business. Every Entrepreneur desires the best and biggest business. They sink every dollar into growth.

Businesses such as Google, Apple, and General Electric invests 10 cents to save $1 in taxes.  This why these firms tax rate is half of small businesses. For example, if you are paying $100,000 a year in taxes, your tax planning budget is $10,000.    By the way, the $10,000 is deductible and is $5,000 after-tax expense to save $100,000 in taxes.

And take a look at this. Congress shames US business for paying more than 14% in taxes

Taxes, like any expense, is controllable.  And like any expense, you must plan to control the cost.

To avoid tax uncertainties, you can get an IRS guarantee.  Known as a private letter ruling (more on this link), these guarantees are issued by the IRS National Office.  Thousands of these guarantees are issued each year.

If you would like to brainstorm your tax needs, then please call me, Brian Dooley, CPA, MBT at 949-939-3414 complimentary consultation.

Here is a list of the five newest and safest tax loopholes (by the way there are hundreds of other loopholes):

1. Solo 401K Retirement Plan
2. Self-direct IRA and 401K
3. Small captive insurance company
4. Nevada Family Trust

5. E-commerce with offshore web server

So, how do U.S. Supreme Court Justices see legal tax avoidance?  Well, the two most famous tax judges are Justice Oliver Holmes and Justice Learned Hand.

Justice Holmes rebuked the IRS by saying:  “The only purpose of the [taxpayer] was to escape taxation . . . . The fact that it desired to evade the law, as it is called, is immaterial because the very meaning of a line in the law is that you may intentionally go as close to it as you can if you do not pass it.

And Justice Hand rebuked the IRS by saying:  Anyone may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.

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