Most wealthy people pay boatloads of taxes. As other answers have pointed out, the top earners pay most of the taxes in the US. At the other extreme, nearly half of the US households pay no income tax. So, in general, if you want to avoid taxes, donu2019t become wealthy.A few wealthy people pay no taxes in years that they lose money. (This is a tax u201cstrategyu201d that I and most other consultants donu2019t recommend.) Yet even in loss years they can pay massive amounts of other taxes, such as state income taxes, property taxes, employee payroll taxes, and sales taxes.A few wealthy people legitimately avoid paying taxes. But thereu2019s a reason most other wealthy taxpayers arenu2019t following the lead of the other wealthy people. Typically those strategies required the wealthy person to invest in highly leveraged risky ventures. For most wealthy individuals, once theyu2019ve worked hard, made good decisions, and find themselves with a lot of assets, they donu2019t want to put their wealth at high levels of risk.For example, the government provides additional tax benefits for investments in low income housing. The purpose is to motivate wealthy taxpayers to invest in housing in areas that are run down and otherwise would offer only slum conditions to the residents. Without the tax benefits, no one would even consider investing in those areas. The tax benefits can significantly lower taxes for a few of the wealthy, but the economic risks to the investor are significantly higher than if they invested in more stable local economies.Similarly, if a wealthy investor invests in highly leveraged real property and uses like-kind exchange deferrals when disposing of property, that investor can u201cavoidu201d paying high amounts of taxes in certain years. However, the taxes avoided are not permanent. When the real property is sold in a taxable exchange, or when the depreciation on the property is substantially exhausted, the investor will eventually pay the taxes. And as with low income housing, the risks are significantly higher than for many other investments.If anyone has the cash or borrowing property to heavily invest in real property, I can help them u201cavoidu201d taxes. However, that person must be prepared to assume the tremendous risk of a volatile investment that requires not cashing out profits for many years. Itu2019s a strategy that the feint of heart would not pursue.A few wealthy people cheat, a phenomenon no different from those in other income strata. But that percentage is low, and if they are caught, they not only pay the u201cavoidedu201d taxes, but they pay massive amounts of penalties and interest. In many cases they go to jail.Al Capone is an example. He paid no income taxes for many years, while living an opulent lifestyle. Law enforcement could never get a conviction for his crimes, but the IRS took him to court and got a conviction on tax evasion. The evidence was that thereu2019s no way his lifestyle could be attained while paying no income taxes. He lived his last years in jail.I find it interesting that the media portrays the u201cwealthyu201d as chronic abusers of the tax system, yet you read very little about the massive abuses perpetuated by those who are not wealthy. For example, one of the largest tax benefits paid by the US government is the earned income credit. By definition, the EIC benefits are paid to the poor. And most recipients of the EIC pay no income tax, yet receive often substantial refunds. (Thatu2019s called a negative effective tax rate.)Further, studies have concluded that as much as a third of EIC payments go to individuals who have either calculated their EIC incorrectly or are committing outright fraud.The easiest way to u201cavoidu201d taxes is to not work, collect the various benefits from welfare, low income housing, dependent care, etc., etc., and claim the EIC. Then work on the side performing a service for which you are paid in cash, such as house painting or a lawn service, and then donu2019t report the income.If you really want to game the system, engage in illegal activity on the side, such as dealing drugs. You can make a lot of money and avoid paying taxes altogether.Another plan I donu2019t recommend. If you get caught, youu2019ll end up in jail.Itu2019s the same as wealthy people who illegally avoid taxes and get caught.