Taxes & Semi-Legal Cheating - who doesn't pay:

a) in general, there are no State or Federal sales taxes on sales of intangible property or related services

b) most ordained ministers do not pay Federal income taxes

c) individuals whose annual income is less than the current year standard deduction

d) "side money" less than $400 in a calendar year paid to an individual is not taxable

e) according to the GAO, two thirds of US Corporations, ( or more than 1.2 million companies), paid no federal income taxes between 1998 and 2005

f) in the same time frame, 68% of foreign companies, (or more than 38,000 companies), doing business in the US also did not pay any federal income tax

g) most religious entities do not pay real estate or income taxes

h) there is generally no State or Federal inheritance or estate tax due on estates valued at less than $2 million

i) companies like Kellog Brown & Root which declare their headquarters as located at a shell office in the Cayman Islands do not pay Federal Social Security and Medicare taxes on their 10,500 American employees working in Iraq.

j) companies that transfer US aquired income to foreign subsidiaries which do not tax that income

k) if you can successfully claim your business had a net loss during your fiscal year there will be no Federal or State income tax

l) if income is derived from unregulated or illicit activity and is paid in cash

m) if income is in the form of barter or trade of services the extent of it can easily be disguised

n) most local community hospitals do not pay property taxes

o) renounce US citizenship by gaining citizenship in a low tax country while continuing to work in the US, or be paid by a foreign government

p) real estate is valued based on current use value, so converting residential acreage to timberland will save on real estate taxes.

q) most large commercial enterprises gain highly favorable tax abatements from their local tax authorities

r) most Indian tribes do not pay property taxes on sovereign lands

s) many industrial manufacturers receive exemptions from State sales and use taxes

t) in some cases, if you are a former insurance agent, fishing crew member, military person serving in a combat zone, or work as a notary public, that income is usually exempt from SE taxes.

u) LLC's are "pass-through" tax entities, and members pay taxes as part of their individual tax bill

v) individuals selling items on the Internet generally do not charge or collect sales taxes

w) high income investors can make their income appear to be capital gains rather than earned income

x) create an annuity contract with a self-created entity to convert capital assets into an annuity income stream thus avoiding federal income taxes which would accrue if the assets were sold outright

y) avoid State taxes by moving to a State that does not have State income taxes

z) create a charitable organization that uses only goods and services provided by that organization