Do the Rich Abide by Their Income Tax Chart?

No United States citizen, rich or not, can avoid paying the taxes that he or she owes according to an income tax chart. In fact, wealthy citizens need to be very careful about paying taxes because they are more likely to get audited. However, there are strategies to minimize tax liability. These strategies are often complicated and not widely-known, meaning a high end accountant will be able to locate them when others cannot.

Wealthy Have Access to the Best Accountants

The best accountants come at a high price. Typically, wealthy individuals pay accountants who have insider-knowledge of tax breaks, tax avoidance structures and other write-offs. These people have top degrees from universities that teach ways to save money on taxes. Wealthy individuals hire these accountants for advice on minimizing tax liability.

Wealthy Can Afford Management Fees

Wealthy people can also afford the high management fees assessed through trust structures and other tax-minimizing corporations. For example, a family can set up a limited liability corporation to own property, and this corporation may have lower taxes than the family would in the same situation. It is costly to manage these corporations. However, those with very high incomes will still save money paying for these structures instead of paying standard taxes.