It kind of passed without much note in the post, but isn’t the passport non-renewal one of the biggest limiters here? $59,000 divided by 10 years is $5,900 per year, so unless you’re willing to forgo having a passport that’s the upper limit of how much you could benefit from non-payment (exclusive of the tax liability reduction strategies). That seems like a pretty low amount per year in exchange for having to research and plan this, then having your available income and saving methods limited (which could easily lower your income by more than $5,900 just by limiting the jobs available to you).
Last I heard, about 40% of U.S. citizens don’t have passports to begin with, so I expect that at least for some readers, this isn’t such a big deal. For the rest it is certainly a consideration to factor in. Note that it typically takes some time before it becomes a problem: you accumulate $59,000 (actually more, as this number is inflation-adjusted) in delinquent taxes, the I.R.S. notices you’re over the limit and submits paperwork to the State Department, then somewhere down the line your passport expires and you’re unable to renew it until you resolve the tax delinquency (and go through a State Department paperwork dance of your own).
It kind of passed without much note in the post, but isn’t the passport non-renewal one of the biggest limiters here? $59,000 divided by 10 years is $5,900 per year, so unless you’re willing to forgo having a passport that’s the upper limit of how much you could benefit from non-payment (exclusive of the tax liability reduction strategies). That seems like a pretty low amount per year in exchange for having to research and plan this, then having your available income and saving methods limited (which could easily lower your income by more than $5,900 just by limiting the jobs available to you).
Last I heard, about 40% of U.S. citizens don’t have passports to begin with, so I expect that at least for some readers, this isn’t such a big deal. For the rest it is certainly a consideration to factor in. Note that it typically takes some time before it becomes a problem: you accumulate $59,000 (actually more, as this number is inflation-adjusted) in delinquent taxes, the I.R.S. notices you’re over the limit and submits paperwork to the State Department, then somewhere down the line your passport expires and you’re unable to renew it until you resolve the tax delinquency (and go through a State Department paperwork dance of your own).
High income rats are presumably disproportiatly likely to want a passport.