Welcome to Radical Personal Finance a show dedicated to providing you with the knowledge, skills, insight and encouragement you need to live a rich and meaningful life now while building a plan for financial freedom in 10 years or less.

Yesterday on the show, I talked to you about why is Joshua so

anti-tax but that show was largely philosophical. I talked about a little bit of

theory, some moral theory, some governmental theory, political theory, etc.

And you're welcome to listen to that show, but it wasn't particularly practical.

I just talked about theory, but we talked about things that really you and I have no chance to effect. It's just a theoretical discussion that I think is worth

thinking about to ask ourselves if we're complicit in things that are immoral, but I didn't

go into any detail about anything practical. I thought today, however, it would

be interesting to talk about tax protesting and tax evasion, because I made the comment in

yesterday's show that I don't personally support or practice any kind

of tax evasion, the willful intentional non-payment of taxes that are legally owed.

By way of reminder, there are two words that we use in tax planning.

We use the word tax avoidance, which is simply choosing

to arrange your affairs in a way that you avoid a tax that is due and tax evasion, which is willfully and intentionally not paying a tax that is legally owed.

So an example would be tax avoidance would be if taxes if you

live on the line of a place where there are no state income taxes and gas is

five cents cheaper than you can go over the state line and you fill up your

car where the gas is five cents cheaper.

You're of avoiding the tax, the high tax in your estate.

Tax evasion would be doing something like going and using non-taxed off-road fuel and putting that in your

on-road vehicle which then drive on the vehicle, which is technically illegal.

It's not illegal to cross the state line and buy your things there where taxes are lower.

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