I came across a post saying that financial advisors are making the ultrawealthy even more richer through tax evasion.
I am not so sure whether that is the case. Of course, tax savings are huge and that is why there is so much tax evasion. But I am not sure whether such tax evasion is optimal or doable. IRS knows that wealthy people try their best to minimize their taxes. Wealthy people know that IRS can really come after them and that they can seize and freeze assets. So I am not certain that there would be such rampant tax evasion.
Given that even the Swiss banks are being to forced to disclose client identities and the leak of Panama papers, it is likely that the wealthy are more careful and wise in tax planning.
Now there are main complaints that the rich are gaming the tax system, and I am sure that many are doing so.
So how do we fix this issue. The most effective way to fight tax evasion is to simplify the tax code. Implement a simple tier system with no loopholes.
The solution is quite obvious! We just need support.
So let us rally on simplifying the tax code, making taxes more fair and reasonable for everyone 😀