Everybody wants to pay less taxes, but not everybody knows how. This article comes up with a logical solution to pay less taxes so you can be more free.

By now you’ve probably heard that Donald Trump supposedly only paid $750 in federal income taxes in the year he ran for president and in his first year in the White House, according to a report in The New York Times. Whether this is true or not, nobody can be sure since Trump said the information is fake news given his tax filings are still under audit.

The president’s financial disclosures indicated he generated at least $434.9 million in income 2018, but his tax filings reported a $47.4 million loss. Therefore, it’s a little mind-boggling to normal people like you and me as to what is exactly going on here.

At least Trump has employed thousands of people and his company has paid tens of millions in FICA tax each year as a result.

Even though roughly 45% of Americans pay no income taxes (mostly due to low income), in 2017 the average tax filer paid roughly $12,200, or about 16 times more than what the president paid. Therefore, if we are to be honest, I’m sure the 55% of Americans who do pay income taxes would love to pay less.

Instead of getting mad at a supposed billionaire for not paying a lot of federal income taxes, we should take this opportunity to learn how to minimize our tax liabilities as well. So long as we can legally minimize our tax liability, we should.

After all, financially savvy people are always looking to minimize expenses and maximize earnings.

This post will provide a detailed look into property taxes by state. Where you live in America can really help or hurt your finances. In a time when working from home is more feasible, many more people are trying to geoarbitrage to make their income go farther.

I used to despise property taxes because the city would raise them even when property prices were collapsing during the financial crisis. It was/and still is up to property owners to fill out a complicated form, find comparable homes that have dropped in price within a certain radius, make sure the comparable sales fit within a certain timeframe, and pay a $60 fee to do so with no guarantee you’ll win!

If you didn’t spend time contesting your property taxes, the city would gleefully raise them despite the obvious declines. The city counts on meek or ignorant people to fill their coffers and pay themselves handsome salaries.

It’s just like how members of Congress continued to get paid even when they shut down the government or close businesses during a global pandemic. Can you imagine losing your job in the recession and having to pay higher property taxes while knowing your neighbor sold his house for 20% less than the city’s assessment?

Fight Your Property Taxes

I fought my property taxes in 2009, 2010, 2011, and 2012 and won for a particular property I bought in the beginning of 2005. I had to fight since the value of my stock and real estate holdings were getting hit and I no longer had a job in 2012.

Since 2013, I’ve let the city tax me back to my normal purchase price plus a ~2% a year catch up increase because the economy has thankfully recovered. I don’t mind paying my fair share so long as it’s just.

After paying ~$450,000 in property taxes since 2003, I’ve finally accepted the reality that it’s up to those of us who saved like crazy and took the risk of owning property to pay for our community’s infrastructure, education, public transportation, service men and women, and other public works. We must pay for those who cannot or will not.

What I’ve also realized is that after much debate, my fellow renters absolutely believe they are paying their fair share of property taxes, even if they aren’t cutting a separate check to the city twice a year.

With this thought in mind, I now believe it’s logical behavior for renters to keep on voting for increased government spending because they all want better and are willing to pay for it through higher rents.