Tax Efficiency

A financial process is said to be tax efficient if it is taxed at a lower rate than an alternative financial process that achieves the same end.

Passing one's assets onto one's heirs using a Grantor Retained Annuity Trust, for example, is potentially more tax efficient than simply letting the heirs inherit the assets.

Famous quotes containing the words tax and/or efficiency:

    “The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
    —Ronald Reagan (b. 1911)

    “I’ll take fifty percent efficiency to get one hundred percent loyalty.”
    —Samuel Goldwyn (1882–1974)