How do owners of corporations avoid paying 39.6% personal income tax?

>>1469500
By having very little personal income on which you have to pay a personal income tax.

Shell corporations, donations to 'charitable organizations' (to lower their tax bracket) that their friends own and can shuffle money back to them for a small fee (lower than the taxable rate), and wise legal shuffling of money between accounts.

Pay your fucking taxes, scum

>>1469511
What about the rest of the money?

>>1469514
don't shell corporations only help with corporate tax?

>>1469500
You can be an owner of a corporation if you wanted

The capital gains (investment income) tax rate is like 20-25%. The ultra-wealthy get most of their compensation structured as stock and the like in order to pay this rate.

You also don't pay payroll tax on it, either, so you're really shelling out about as much of your income to the feds as the typical $60k a year pleb, which is why my racist tax accountant dad still managed to vote for Obama after Mitt Romney, who had paid a 15% effective rate on $20+ million in income, called retirees and niggers making $20k entitled leeches for not wanting to pay taxes.

They generally don't. They just tend to make more money to make up for it.

>>1469517
The rest of the money is taxed at the corporate rate that the corporation pays.
The rest of the money is subject to a dividend tax, paid by the individual, when dividends are issued.

>>1469514
>Shell corporations
Wrong
>donations to 'charitable organizations' (to lower their tax bracket) that their friends own and can shuffle money back to them for a small fee (lower than the taxable rate)
Wrong.
>wise legal shuffling of money between accounts
Wrong.
>>1469532
>The capital gains (investment income) tax rate is like 20-25%.
Wrong.
>The ultra-wealthy get most of their compensation structured as stock and the like in order to pay this rate.
Wrong.
>>1469558
>The rest of the money is taxed at the corporate rate that the corporation pays.
>The rest of the money is subject to a dividend tax, paid by the individual, when dividends are issued.
Correct, although if you're active in the corporation you're required to draw a salary. If you don't, one will be imputed to you for tax purposes. But, yes, the remainder is transferred as a distribution, which is subject to capital gain tax and not OI.

>>1469570
>But, yes, the remainder is transferred as a distribution, which is subject to capital gain tax and not OI.
Qualified dividends are taxed at the capital gains tax rate, but they are not the same thing as capital gains. Ordinary dividends are taxed at as ordinary income.

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>tfw PIT and capital gains tax is the same in my country (19%)

>>1470177
Only public companies issue dividends, and that term is used for accounting and tax purposes. Most corporations are non-public, and issue distributions, not dividends.

>>1469570
Hello tax anon. If i live in the cayman islands as a citizen, can I trade u.s. stocks with 0 tax? How do foreighn daytraders deal with u.s. stock?

>>1469532
Capgains is 15% for over a year of holdi g, or your income tax if you withdraw in under a year. So being a 1%er daytrader is hard as hell in the u.s.

>>1469500
Major trick is depreciation of assets.

It's only in the last couple of years that I've paid a cent in income taxes. Depreciating real estate is amazing in that you can generate a few grand of cash flow off of a property, even after maintenance to keep it pristine, and report it as a loss of several hundred.

I want another market crash so badly.

>>1470313
>If i live in the cayman islands as a citizen, can I trade u.s. stocks with 0 tax?
No. The IRS requires tax withholding on payments to foreigners.