the difference is that those riches are hiding money illegally. as long as they report to IRS , it is fine with the government. what we are discussing here is tax defer in a legal way.
The objection you raised is not a problem, if you have a brokerage account outside panama which only you know the password even though you are a minority shareholder its you who are really in control so they can do nothing about it. The actual problem for a US citizen is something called 'controlled foreign company' and its rules which makes it hard for you to dogde the tax but I'd think its still possible with highly complex structures
Become an Ordained minister and open up a Church. Then that money is the churches money and used to pay your Salary as a Reverend plus the expense of the church. Look at Benny Hinn and all those billionaire Reverends living tax free.
Uh, a password doesn't mean anything. Whoever the majority shareholder is, if they fax a signed request to your brokerage firm looking to: a) add person Z as a signatory, b) withdraw all funds in the account ... how can your brokerage firm legally refuse their request? What's your legal position? They promised?
States with no income tax just find other ways to generate tax revenue. You can avoid income taxes by living there, but you can't afford taxes.
I'm afraid I don't follow. The cost of living in Washington, Texas, and Tennessee is way lower than that of California, it seems to me (whether you're talking real estate or even eating out). What are these hidden expenses of living in the tax free states?
Good to know. I hadn't looked into property taxes, as my plan is to rent a second pad in the tax-free state.