Quote:
Taxes in our society are targeted towards those who make a lot of money all at once.
In other words, those who make more money later on (i.e. physicians and lawyers, but especially physicians) get penalized relative to those who make their money in a more spread-out fashion (i.e. other professions listed).
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Yeah, but this gets complicated if you were to investigate it.
I completely agree that our tax system hammers those who make their money "all at once" compared to those who spread it out. But that's the key - to spread out your earnings.
Specifically, many doctors run their own company (private practice), and there are a lot of things you can do to reduce/smooth your tax bill if you run your own company, particularly if you incorporate. For example, if your company is going to generate a lot of revenue in a particular year, you can attempt to balance it by just incurring a lot of expenditures that year: expenditures that you would have had to incur anyway, but whose timing is accelerated in order to reduce your tax exposure.
Look, I don't pretend to be a tax lawyer or an accountant, but I know there a lot of tactics that businesses employ to minimize their tax liability. I'm sure that private practice doctors will know all about them.
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