Ethics Around Reducing Tax Liability
Hi all, as I've been getting more into real estate investing, it's become quite clear that the US tax code favors business owners and real estate investors rather than W2 employees or self-employed business owners. On a personal level, I'm very excited about the idea of not paying more tax than I need to and creating a financial tailwind by taking advantage of tax breaks. I'm more than willing to continue to legally take as much advantage of the tax code as I can for me and my family. I have no interest in paying more than I need to at the cost of my family's freedom from financial stress.
Having said that, in the current socio-economic climate where vast inequality and systematic disadvantages are at the forefront of the national conversation, quite frankly I'm feeling guilty about building a business that is reducing my total tax liability because I feel as though I'm taking advantage and participating in a financial system that is causing so much pain for so many.
So those are the two sides to the coin that I'm debating between. I am a capitalist because I believe it's the only system that works on a large scale (don't want to open that can of worms here) but I don't believe in completely uncontrolled and ungoverned capitalism because it allows for the powerful to retain their power forever at the cost of the many. I believe in creating checks and balances in the system to make sure that as many people as possible have similar opportunities for financial, educational, and spiritual success.
Would love to hear thoughts from others in the community who also philosophically fall somewhere between Mr. Monopoly and Karl Marx :)