Tax Holiday: How to Cut Your Bill by 90 Percent

There are countless methods for lowering your tax bill. Most involve reams of paperwork and clever accountants; many shave only a few percentage points from the final tally; some invite the unwelcome scrutiny of governments and regulators. But there is a simpler way. All it requires is moving to a sun-drenched tropical paradise. The U.S. Virgin Islands has offered for decades an incentives program meant to help build out its economy. If they can qualify for eligibility, American citizens could be looking at effective rates up to 90 percent lower than what they currently pay.

Oliver Wendell Holmes, Jr. once remarked, “I like to pay taxes. With them, I buy civilization.” Fair enough. But there are limits. The top U.S. federal tax rate for individuals at the end of 2015 was 39.6 percent. Depending on what state …

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