Many people getting their knickers in a twist over Trumps taxes will say the stunts his accountants pulled are fraud but is this so? (NB it's very rare for rich people to do their own accounting, tax systems are complex and anyone who can afford to pay specialist accountants and lawyers would be a fool to takle the task alone)

Those specialist accountants and lawyers are good at what they do so you can bet whatever is in the accounts presented to the IRS on behalf of Trump is legal (that doesn't mean it is ethicasl of course.)

As an outsider I find all the wailing and gnashing of teeth from liberals over Trump's taxes hypocritical when some of the virtue signalling Silicon Valley billionaires (Zuckerberg, Gates, the Google gang etc.) are treated like demigods when they express support for leftist sacred cows.

For years now, Facebook, Apple, Migrosoft, Alphabet (Google) and others have operated their European busineses out of Dublin to take advantage of an Irish tax law that makes it easy to hide profits from the tax authority where the money was made. Look up the for an explanation of how the scheme worked for corporate profits.

Having dodged tax on corporate profits, the corporate accountants would help executives by paying salaries and bonuses in shares and share options. To take full advantage of this an individual would need a Luxembourg structure. The Luxembourg tax authority has always operated a policy of only taxing money earned and paid within Luxembourg. So the individual sets up a Luxembour registered LLC with nominee directors (Luxembourg residents who are directors of thousands of companies, receiving a flat fee from each,) with themselves and possibly family members as non domiciled stockholders. The payments in kind are then made outside Luxembourg and converted to cash through a buyback scheme in another tax hasven jurisdiction.

OK that's the simple version, I dont guarantee its 100% corect but its close enough for a comment thread.

This is how rich and sometimes not so rich operate, and with the full knowledge and complicity of tax authorities. You can't do it with a regular salary, even a very large regular salary, but bonuses, extraordinary payments, capital gains etc. can all take advantage of these and the many other perfectly legal tax avoidance vehicles.

As the title of a classic British sitcom asked, "Why Do Only Fools And Horses Work."

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Opted for comfortable retirement before I was fifty due to health problems and burn out. Now spend my time writing and goofing around. Home: northern England..

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