Some Taxpayers Make Their Own Tax Cuts | AccountingWEB

Some Taxpayers Make Their Own Tax Cuts

Charles Lewis, director of watchdog group Center for Public Integrity, has written a book in which the tax-dodging secrets of the rich and famous are revealed. According to Mr. Lewis, there are thousands of wealthy Americans who, dissatisfied with the current tax laws, have taken matters into their own hands.

In addition, it appears that many corporations make use of tax manipulation tactics to cut their tax assessments down to a miniscule size.

These creative citizens have provided themselves with tax cuts that would leave the proposed tax cut of the Bush administration in the dust. Mr. Lewis and co-author Bill Allison estimate that a bit of creative finagling with the tax laws has resulted in a $2 trillion tax cut - far in excess of the President's $1.6 billion proposal.

Messrs. Lewis and Allison conclude that Congress will need to close loopholes and the IRS will need to increase enforcement efforts before these avoidance techniques can be stopped.

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