move to the country without income (or capital gain) tax
Best practices for trading income
- Thread starter masterm1ne
- Start date
The same apllies to the poor, at least in my country. And that has become the problem: Social security is for 30% of the population financially better than working. Social security has become too generous. Even the illegal imigrants know this by know, and we see the results of it in Europe. There is no money for pensions anymore and people have to work longer, but there are billions for these illegal immigrants who never paid anything and will never work. Middle class will have to pay this bill.
In my country the lowest salaries are between 1000-1250 euro a month. Social security will pay to unemployed 1000-1500 euro a month if they have no job. This system is UNLIMITED in time, which means that there are people who NEVER worked in their live and always lived from social security. They also have right to rent houses for less than half the real rent (government, so taxpayers pay the rest), have free transport, can have very cheap loans, receive extra financial support for children going to school... In short they have a lot of things for free, sponsored by the middle class. Studies proved that some middle class families (the lower ones) cannot afford a lifestyle that some poor people (the upper ones) have. It is the world upside down.
You only speak about the rich (they representy less than 5% of the total population), but the real victims are the "middle class". Families where father and mother have to work fulltime to have a reasonable life, some even just to survive. They are taxed heavily, and when I say heavily it means that all yearly income above 12,400 euro a year is taxed at 40%, above 20,660 euro it is taxed at 45%, and above 37,870 euro it is taxed at 50%! This middle class will disappear in future.
Taking care of the real people in need is abused so heavily that the whole social security system will crash. And again the middle class will be the biggest victims as they paid their whole life huge amounts for social security and will never get anything back.
No. Stay in your country and try to profit from the social security you paid for. But move your income somewhere else.
I do agree with this, but at the same time, it could just be my own prejudice without having any real numbers or facts to go on. Its obviously still very early to tell if this is in fact true. I would like to think many will want to work and contribute and just need the opportunity, but who really knows at this point.
This certainly is an issue as well, and I've read similar studies about how those on the very bottom actually have more than those in the middle.
Agree with this as well.
Couldn't agree more here as well.
But you see, I think in some ways, it is the rich who have exactly created this problem. People will always look around, see who has more or who has it better, and then complain. The rich have managed to set it up so that the lower and middle classes are fighting it out. Its beautifully set up in that the bottom poor gets enough to get by, paid for by the middle, and when there isn't enough to go around, they fight each other while leaving the source of the real problem, the guys at the top who have the biggest share of all the wealth, all to themselves.
The other issue is that you talk quite a bit about hard work, but honestly, many poor people do work hard, some don't, but many do, and there is simply no way to get ahead anymore by working hard. In contrast, those at the top don't really work all that hard. Yes they may be smart, and yes maybe they struggled for years, but once you're sitting on millions in stock, hiding your money, paying a small amount of tax on your stock gains versus higher tax if it was actually from work, then you're having it very very easy. The middle class, although they may own some stocks, still work very hard for a living and hence don't enjoy this benefit. So there is this big disconnect between how hard you work and what you get, and people see this.
So in many ways, much of the problems that you discuss and that you are right about could be solved with income equality. But all you have is the poor fighting it out with the middle class, and the top gets away with everything. The media might paint the rich in a bad light, but ultimately, nothing is ever done since they control the laws and politics and ensure that they keep the middle class mad at the poor, as if they are to blame, as opposed to seeing that the poor are poor because of how income inequality is really what the issue is. If you solve income inequality, you have the poor who can move up in the ladder and don't need the handouts, you have the middle class not disappearing, and you have a system that might be more sustainable.
I guess when the OP asked about taxation, it brings up politics and policy.
I agree with Gotcha and would add that "the rich have managed to set it up..." includes managing congress into a state of dysfunction so they will be unable to do the practical things that address income inequality.
So if one could deal with that issue... perhaps the OP and others could go back to a time when people paid their taxes with a smile because they saw true value in it.
The more money he makes and starts to look into "tax shelters"...he'll need to move from a cheap tax accountant into someone that specializes in such and that person most likely will be given power of attorney over the tax.
They then are no longer cheap.
I agree with your analysis, but HOW could you move your income without moving your a*s? Tax liability remains in the jurisdiction you live.
No, there are situations were you live in one country and work in another. You pay taxes in the country where you work, not where you live. You have to travel of course, but if income is big enough that cost will be relatively small.
I have confirmation from the tax authorities from the country where I live and also confirmation from tax people from EURO parliament.
Income is taxed on that place where the real action takes place. So place of management is decisive.
OK, but that assumes a situation where residents of country A work in a firm located in country B. If there is a real working firm in country B, income is subject to taxation in country B. But if you just go to country B for a few hours or days, rent a desk in some office all the time and return afterwards.... taxation remains with country A. Just decided for german taxsubjects(german freelancers working in Luxembourg). Will be followed by other administrations as well.