April 23, 2015 Admin | April 23, 2015 How can you reduce your tax burden? Here I am talking about all of the taxes you pay. How?
4 thoughts on “April 23, 2015”
To cut down on the gas taxes that you pay try to drive less or drive a more fuel efficient vehicle. To cut down on the sales tax that you pay, buy less stuff or buy things that dont have sales tax like fresh foods. There are many taxes that people dont think about when they talk about taxes. There are taxes on your cell phone that you can reduce depending on the plan you have or if you have a pay as you go phone. There are taxes on cars that you have to pay when you get a new vehicle, try to avoid buying a new car if you can. There are property taxes that you have to pay if you own a house, if owning isnt right for you rent or own dont own as large as a house that you want but own one the size you need. Try to make passive income that is taxed much lower than earned income. Put money in to your retirement account to avoid paying some taxes on your earned income, avoid taking that money out of your retirement account early to avoid the fees. Avoid living in a city with a city income tax or a state with a state income tax if you can. There are many taxes that people pay and income taxes are not the only one you can try to avoid.
You can easily reduce your tax burden by reducing the amount of stuff you buy. Nearly every time you make a purchase, you are being taxed in some way, shape, or form. If you are able to limit your purchases to the things you need, and cut back on frequent purchases of the larger items (cars, a home, etc.), you will not only be saving yourself some money, but will also be spending less in taxes.
Property tax – Don’t own any property. Rent
Vehicle tax – Purchase cheaper vehicles. Lower taxes.
Sales tax – Buy less stuff. Can’t charge sales tax you if you aren’t buying anything .
Income tax – make less money. Ok that’s one way but not a very good one. You can also focus on passive income from investments held over time which are taxed at a lower rate. For normal income tax, you can defer more to a 401k which cuts your income thus cutting your taxes. You can also give to charities. Charitable donations are removed from your income (if you do it correctly, enough, etc) and you can distribute your money how you want.
Well said everyone. I have nothing to add to your excellent responses. Well done!