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Tax planning and credit deductions is at the core of a good tax declaration. The problem with Trump tax return is not what you think it is… It is simply legal to plan your taxes and pay less by using the available credit deductions and fiscal laws.
I’m not talking about what is the “right thing to do” or what credit the government should create. Even if fiscal politics are not perfect, it is possible to save on your taxes. You need to use the existing legal tools at your disposal.
The government objective is to redistribute wealth:
- To maintain economy;
- Make sure household can spend their available income on consumption goods;
- Finance their activities to offer public services;
- Help those in need to have the bare minimum to live with.
Take a step back and understand two thing:
- Taxes are there to maintain the rule of law and a social cohesion
- Rates and tax brackets are a tool to do #1.
A tax credit is like a “gift certificate” and just like you would offer it to someone else. One might use it the same day. And the other person might just put it somewhere and forget it even exists…
It is the same with credit deductions in your annual tax return. The tax payers are Individuals & Corporations.
