It is often commented that the tax code is progressive because the wealthy pay more in taxes than others. However, often missed is the number of tax loopholes and shelters that require complex financial planning which can only be afforded by the rich. One noted example over the years has been the heirs of the Estée Lauder fortune. Throughout the years they have created complicated tax structures to defer or outright avoid paying taxes. Such planning became so notorious that congress had to specifically pass legislation to outlaw certain tactics used by the family.
See David Kocieniewski, "A Family's Billions, Artfully Sheltered," nytimes.com (Nov. 26, 2011).
Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal.
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