Tax avoidance discussions have been highlighted by the global press over the last month or so.  This was triggered by the so called Panamanian papers data theft.

I have already stood on my soap box about data theft in previous posts.  This post focuses on my analysis of tax avoidance.

My emotional stance differs a bit from my Spock like opinion . (Spock was the logic focused half Vulcan character from the original Star Trek series)

This post trys to be very rational about the topic.

Warren Buffet

A couple of years ago Mr. Buffet is said to have noted that he probably has a lower effective tax rate than his personal assistant.  Through use of legal tax avoidance he limted the amount of tax he paid.

To be clear, Warren did not enable this behaviour, (tax avoidance) in fact  the U.S. government set it up so he could reduce his tax payments.

Given he is a bit of sharpie when it comes to money management, I would be more surprized if he avoided the opportunity to maximize his returns, than if he did not.

My simple conclusion based on these facts would be “way to go Mr. Buffett”.  So why all the fuss about tax avoiders.  (Remember tax avoidance is legal, tax evasion is not).

Morale Standard

Is it logical to hold Mr. Buffet and other tax avoiders to a higher standard and if so why?

Personally I use every tax avoidance opportunity that I am reasonably able to capitalize on.  Believe me, no guilt feelings here on my part.

Of course, if I am a excessively wealthy capitalist or Corporation (I am not) I guess  I should freely contibute to the tax system as much as I possibly can.  After all there is the greater good to consider.  (Ooops the emotional perspective is leaking out).