The only way out of this is forfeiting your US citizenship, which is a mighty big step to take. Not counting cultural and patriotic issues, but only talking finance, an exit also requires that you pay up on any unrealized capital gains as you exit.
It pains me to say this, but the country I grew up in, the land of the free, now has one of the most greedy and grasping tax systems of the civilized world. I've heard that overseas bankers in many countries don't even want your account if you are a US citizen.
“It should be known that at the beginning of a dynasty, taxation yields a large revenue from small assessments. At the end of the dynasty, taxation yields a small revenue from large assessments.”
‘Abd-ar-Rah.mân Abû Zayd ibn Khaldûn (1332-1406)
Way before the Laffer curve, we had historical evidence of the consequences of societial decay.
In 1990, when Congress imposed a luxury tax on yachts, private airplanes and expensive automobiles, Sen. Ted Kennedy and then-Senate Majority Leader George Mitchell crowed publicly about how the rich would finally be paying their fair share of taxes. But yacht retailers reported a 77 percent drop in sales, and boat builders laid off an estimated 25,000 workers.
What happened? Kennedy and Mitchell simply assumed that the rich would behave the same way after the imposition of the luxury tax as they did before and the only difference would be more money in the government’s coffers. They had a zero-elasticity vision of the world, namely that people do not respond to price changes. People always respond, and the only debatable issue is how much and over what period.
Walter Williams
Nothing new. In the 1970s Bjorn Borg, young Swedish tennis phenom moved his taxable residence from high tax Sweden to low tax Monaco.
They are called “tax exiles.”
Article showing Europe has learned.
http://www.cato-at-liberty.org/sweden-repeals-wealth-tax/
The dirty little secret is American millionaires have been exiting the country during Obozo’s reign AND they are renouncing U.S. citizenship. I think it was 1,200 last year and 2012 is ahead of 2011. Tax the rich, Barry. Watch the stampede accelerate.
Here’s what I would do if I were in this squeeze:
I would pay off all my large debts, to the best of my ability. I would use funds I already had paid taxes on and would pay off my property/house—car—and whatever other debts I had that I could pay off with about 35% of my accumulation of funds. I would take the vast majority of the rest of that 65% and convert it to cash or silver coins and have a safe installed at my home. I would keep as much as possible at my home, hidden.
IF I were running a company, I would then pay myself just enough to pay day-to day and month to month bills. I would drop myself into a tax bracket which would leave me paying nowhere near the taxes I had been paying. Where I might have been paying myself $200,000 a year for my efforts, investment & expertise, I would drop that down to a month-to month minimum. I would probably also increase certain life insurances with the owner of the policy a person who could get the benefits without any taxes.
Mentally, or even on paper, I would record the shortfall I was holding back from paying to myself. When Obama and his plans were proved completely wrong, and I could go back to my usual salary paid to myself, I would add back into that salary the shortfall I underwent in the meantime.
I would also make sure that ANY and ALL employees of my company that voted for Obama or vocally supported him were removed from my employment. If any of them held a really important slot, I figure I can find someone in the ranks of the unemployed who is a true conservative.
IF I have to ratchet down the volume of business I am doing, I will do that also.
I will refuse to continue feeding the pig.
Here’s what I would do if I were in this squeeze:
I would pay off all my large debts, to the best of my ability. I would use funds I already had paid taxes on and would pay off my property/house—car—and whatever other debts I had that I could pay off with about 35% of my accumulation of funds. I would take the vast majority of the rest of that 65% and convert it to cash or silver coins and have a safe installed at my home. I would keep as much as possible at my home, hidden.
IF I were running a company, I would then pay myself just enough to pay day-to day and month to month bills. I would drop myself into a tax bracket which would leave me paying nowhere near the taxes I had been paying. Where I might have been paying myself $200,000 a year for my efforts, investment & expertise, I would drop that down to a month-to month minimum. I would probably also increase certain life insurances with the owner of the policy a person who could get the benefits without any taxes.
Mentally, or even on paper, I would record the shortfall I was holding back from paying to myself. When Obama and his plans were proved completely wrong, and I could go back to my usual salary paid to myself, I would add back into that salary the shortfall I underwent in the meantime.
I would also make sure that ANY and ALL employees of my company that voted for Obama or vocally supported him were removed from my employment. If any of them held a really important slot, I figure I can find someone in the ranks of the unemployed who is a true conservative.
IF I have to ratchet down the volume of business I am doing, I will do that also.
I would cherry pick out the very best customers I have accumulated & discard the ones who pay late, want fast service when they have brought me the work late, and in general, refine my customer base. That would reduce my gross, but will also reduce my stress in working with the jerks.
I will refuse to continue feeding the pig.