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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (445)	8/18/1998 10:43:00 PM
From: RookieTrader	Read Replies (2) \| Respond to of 1383

Ok I have read through all the posts on this board, I have studied and taken notes until my eyes bled. So now I am ready to ask the questions...and give some answers since I am pretty knowledgeable after all of my work. 1)What states do not have a "state" tax? Which ones are the lowest? Further more...for the states that do not have a "state" tax, how do they compensate for this loss of revenue? Higher sales tax, estate tax, etc...Please be specific. I live in wisconsin and the current rate progresses up to 6.93%. I of course want to not pay a state tax but yet be able to avoid how the state that I move to could collect the money from me in a different way. EG. Say I move to washington state which does not have a state tax, but they do have a hefty property tax...So I would simply rent or buy a really cheap house. Or if they had a hefty sales tax, I would try to limit my purchases until I took a vaction into a state that didn't have a huge sales tax. 2) Now as a trader or investor if I derive all of my income from capital gains s-t or l-t gains...I can avoid SE tax which is really useless anyway. If I was SE it would amount to 15.3% of my income which I would never see again anyway. (I am 21 & not counting on it) Social security is a very bad thing since not only will I see it, but it does not earn any interest nor appreciation, and if I did get it, it would be TAXED anyway! lol what a joke. So now if I did move to a state that does not have a "state" tax I have eliminated 15.35 or 7.65% depending on if I am SE and I have eliminated the 6.93% Wisconsin state tax. Say I make 300k as a business...gov gets 15.3%SE tax less 1/2 SE tax deduction + state tax 6.93% in WI + around 39.6% top federal rate. SUM total = 61.83%!!! Thats the most...and it probably effectively goes to 50% by the end of 1040. This is SICK! But if I am a trader and I move to a state with out a state tax...I can only pay federal! so say 39.6% and probable effective 37% by the end of form 1040. LONG LIVE TRADING! Does anyone disagree with the above?