How To Save Money on Taxes and Benefits of a Sharing Economy (Part 1)steemCreated with Sketch.

in #homesteading7 years ago (edited)

Hi Steemians! I have an idea about how we can all save a bit of money this year by reducing our taxes!

For my U.S. friends, this may also double as non-violent and legal means of protesting a government you may not agree with. Now, without delving into my stance on the legitimacy of taxes, let me suggest something very easy we can do to significantly decrease them this year.

For Small Business Owners and Self-Employed

This is for those of us who own a small business, are self-employed, or are otherwise charged for paying taxes each year for the services we provide (income). This can also be used to increase quality of life (through taxless exchange/gifts) for those with transferable skills!
This method can (if used to its highest potential) drop our tax burden to near zero! It's simply not charging (or significantly discounting) our services in exchange for others' services. This not only lowers our income while keeping our expenses stable, but helps the other party do the same as well!

Simple Scenario:

Let's say you're a plumber(interchangeable for any trade) and you do a job for a hairstylist that would normally be $65, after the job you ask her/him "would you like to participate in a sharing economy."

They say "what's that?"

You say "well, simply put it's a way to create more resilient local communities, decrease our tax burden, increase our social connections and quality of life!"

They say "what's the gimmick?"

You say "no gimmick, I will simply charge $20 (or the relative value for the haircut) less for my job today if you give me a haircut (assuming you need one, if not, gift to another)!"

They say "Sure, I'd love to save some money!"

Several things happened here:

  1. A spark of a friendship was ignited!
  2. You both earned less income (thus reducing taxes) while maintaining the quality of life (her pipes were fixed, your hair was cut) Ex: you were only taxed on the $45 income, not the $65 and the hairstylist wasn't taxed at all, and you saved on sales tax!
  3. An economic relationship was formed that can be used again, or transferred (possibly to your friend who needs a haircut in exchange for advertising, etc)
  4. A few less dollars will be added to this years GDP!
  5. A line of a money-reduced economic web was formed. A web, that if big enough, will protect a community from economic disruption and financial crisis!

Example 2:

When my Partner and I were in Belize, we needed a place to stay in a busy town that usually charges pretty high rates we did not wish to pay. We worked out a deal where we would help a host get their hotel up on AirBNB in exchange for a two night stay! This proposal would save us the room rate and would provide another source of income for the owner!
This works for any situation, regardless of service. All this requires is that whenever you're about to engage in a economic exchange with another person, you simply inquire what it is that they do (and share what you do) and see if this is a relevant skill that can help you or one of your connections!

If you feel like you don't have any transferable skills. You're in luck! It just so happens to be the end of a month, maybe a resolution is in order!

This simple measure will reduce our taxes, increase our friends, and take a little bit of food off the banquet for the powers that be! :)

Remember, the only good deals are when both parties walk away winners. :)

Or, just make the whole exchange in crypto and tell no one ;)

May our relationships grow and our communities become more resilient this year!

Rieki

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Good info. Many people in the U.S. barter but the govt says they have to declare it as income. Not sure if this would fall under that category but avoiding specifics and not putting it in writing would make it a lot tougher for the govt to try to prove it ever happened. Not that I'm suggesting people don't pay their taxes.

Fair points. Thank you for sharing. I actually didn't know that barter had to be included in taxes!! Best to just consider it a gift exchange, then it's tax free :)

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