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In the US, the practice of tax avoidance is advocated by many tax attorneys and tax preparers. They offer this solution to their clients because it is completely legal and has no moral or patriotic implications. Most tax attorneys and tax prepares work within the legal confines of the tax law to help their clients maximize their tax deductions which results in minimizing the tax paid to the government.
If we look at the statement made by Warren Buffet where he mentioned that he paid just 17.7 percent taxes on his $46 million taxable income in 2006, while his receptionist paid 30 percent. The fact that a billionaire like Warren Buffet paid so little is through clever manipulation and deductions which allowed him to drastically reduce his tax liability. Buffet did not break any laws. His tax attorney stayed within the confines of the tax law but still managed to reduce the amount of taxes he paid. This is tax avoidance in a nutshell for you.
Tax avoidance may not seem fair but this does not obligate Warren Buffet or anyone else living in the US to pay more taxes than they are required to do, as long as the tax payers comply fully with the tax laws and regulations.
Tax avoidance in USA can be blamed on the federal government as it does not have a fair taxation policy and the government has to ensure that all loopholes that can be manipulated by taxpayers are closed so that everyone pay correct taxes. However, this is an ideal scenario and in reality it is just not possible.
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