I never had to pay such a high percentage in my life but now trading income has gotten to a point that it is impacting things and I had to even write a 19K check to the IRS. (in addition to quarterly payments) total about 106K for 2013 Is there a way to cut this? how do rich people do this? I keep hearing that they only pay 15-20% The problem is everything I make in trading is short term gains. Does it make sense to make a Corporation and pay yourself only a salary for what you need for living expenses or less and keep the rest in? Anyone have any ideas on how to structure things to minimize taxes. Any books or websites that could help?