I found this passage on avoiding taxes very interesting and want to share it with you.
In a famous legal opinion, US Supreme Court Justice Louis D. Brandeis encouraged taxpayers to take advantage of the tax benefits given to Americans. The following quote highlights the social policies guiding Congress when it makes tax-advantaged legal and financial instruments available:
“I live in Alexandria, Virginia. Near the Supreme Court chamber is a toll bridge across the Potomac. When in a rush I pay the Dollar toll and get home early. However, I usually drive a free bridge outside the downtown section of the city, and cross the Potomac on a free bridge. The bridge was placed outside the downtown Washington D.C. area to serve a useful social service: getting drivers to drive the extra mile to help alleviate congestion during rush hour. If I went over the toll bridge and through the barrier without paying the toll, I would be committing tax evasion. If, however, I drove the extra mile and drive outside the city of Washington, I am using a legitimate, logical and suitable method of tax avoidance, and I am performing useful social service by doing so. For my tax evasion, I should be punished. For my tax avoidance, I should be commended. The tragedy of life today is that so few people know that the free bridge even exists.”
This excerpt is from Tim Voorhees book, The Best Zero Tax Planning Tools. I have added it here with his permission. Tim Voorhees is a colleague who specializes in helping clients avoid current and future income taxes and can be particularly helpful for clients with large IRAs or high incomes.
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