Moguls Rent South Dakota Addresses to Dodge Taxes Forever

What would you expect? If you live in a state like California and are in the highest tax bracket, your total tax rate (federal + state + local + various surtaxes) would be close to 60%. It is ludicrous to expect most people to just fork over such an outrageous percentage of their earnings without complain.<p>No wonder the high-income individuals are fleeing high-tax states and &quot;tax-the-rich&quot; ideology is failing to fill the states&#x27; coffers. Raising taxes hurts poor people more than the rich. <a href="http://www.forbes.com/sites/trulia/2013/02/12/jobs-arent-leaving-california-for-texas-but-people-are/" rel="nofollow">http:&#x2F;&#x2F;www.forbes.com&#x2F;sites&#x2F;trulia&#x2F;2013&#x2F;02&#x2F;12&#x2F;jobs-arent-lea...</a>

A quote from the article: &quot;Just $1 million invested in a dynasty trust, and earning 12 percent a year, would swell to $1.9 billion in 85 years&quot;. So my question is how do I find a investment vehicle that gives me 12% return compounded year after year?

When I read stories like this I often wonder, would I do things any differently if&#x2F;when I have that much money?<p>Would you?

It&#x27;s really stupid of me, but everytime I read about taxes, I am always &quot;re&quot;-amazed at how much money get spent on protecting money.

This reminds me of an article recently in businessweek about the tax loophole with trusts that Sheldon Adelson uses.<p><a href="http://www.bloomberg.com/news/2013-12-17/accidental-tax-break-saves-wealthiest-americans-100-billion.html" rel="nofollow">http:&#x2F;&#x2F;www.bloomberg.com&#x2F;news&#x2F;2013-12-17&#x2F;accidental-tax-brea...</a>

The article considers the rule against perpetuities to be an obviously good thing, but I have my doubt. Consider this argument for example:<p><a href="http://www.overcomingbias.com/2010/03/parable-of-the-multiplier-hole.html" rel="nofollow">http:&#x2F;&#x2F;www.overcomingbias.com&#x2F;2010&#x2F;03&#x2F;parable-of-the-multipl...</a>

Wow, who would have thought the Rule against perpetuities had actual implications in modern American law! I thought it was more of a trivia question that law professors might ask about in a property law class. Next thing you know, we&#x27;ll be reading an article discussing the Rule in Shelley&#x27;s Case!

To steal a great phrase, every time I hear a story like this, I know the guillotines are coming closer.

Sounds like a good strategy. If I had so much money I would hire some of the smartest people in the world to save my taxes whatever way possible as long as the government (read as legal extortion gang) cant put me behind bars for it.