since you don't like the first idea this is a second one for deducting taxes Let's say we create a fundation called anonymous traders for helping addicted daytraders. We could deduct taxes no ? A national income tax was declared unconstitutional in 1895 by the Supreme Court, so a constitutional amendment was proposed in Congress by none other than ...Senator Nelson Aldrich. As presented to the American people it seemed reasonable enough: income tax on only one percent of income under $20,000, with the assurance that it would never increase. Since it was graduated, the tax would "soak the rich", ...but the rich had other plans, already devising a method of protecting wealth. As described by Gary Allen in his 1976 book The Rockefeller File, "By the time the (16th) Amendment had been approved by the states, the Rockefeller Foundation was in full operation...about the same time that Judge Kenesaw Landis was ordering the breakup of the Standard Oil monopoly...John D...not only avoided taxes by creating four great tax-exempt foundations; he used them as repositories for his 'divested' interests...made his assets non-taxable so that they might be passed down through generations without...estate and gift taxes...Each year the Rockefellers can dump up to half their incomes into their pet foundations and deduct the "donations" from their income tax."