Originally Posted by
zoooropa
Exactly, it is better to tax the seed instead of the harvest.
There is a great illustration out there about deferring taxes for 30 years by contributing to a 401k or IRA. The IRS ends up recouping all of the taxes that you defer after less than 4 years of distribution, after that point it is all profit for the IRS (and a loss for the investor).
Pay the taxes now, you will be very happy that you did.
That wasn't the point of my post. The point is to use the tools put in place by the "lawmakers" to minimize your taxes altogether.