So many of my affluent friends who are high earners are worried about the coming tax increases under President Obama. Many of us are already paying over 50% of our income in taxes when you add up our Federal Income Taxes, State Income Taxes, Property Taxes, Sales Taxes, Self-Employment Taxes, and the list goes on. Now the government wants us to pay even more. How can we lower our effective tax rates, you might be asking?
Well I’m not a tax professional, so I can dispense professional advice, but I can tell you what many of my friends are doing to lower their effective tax rates. If you are open to relocation, first check out my previous blog “Top 10 Island Tax Havens You Can Retire or Relocate To” . While relocation is not an option for many of us, because we have kids in school, family, or other responsibilities — I’ll give some details on how to lower your tax burden below without relocating.