Money spent from the savings accounts would escape taxation, thus providing a tax subsidy for all medical purchases.

A taxpayer who is normally taxable only on the receipt of interest payments cannot escape taxation by giving away his right to such income.

Now, this doesn't mean that such families escape taxation.

Thanks to soaring incomes at the high end, a larger amount of income escapes taxation these days.

This means that more than half of dividends paid already escape immediate taxation.

The earnings, $188,000, would escape taxation when used for qualified education expenses.

So the estate tax is a way to capture taxes on money that has escaped taxation during the lifetime of the individual.

The purpose of this tax is to guarantee that rich people with large deductions cannot escape taxation.

The purpose is to be sure those with sizable income do not escape taxation.

In decoupled states, an estate might escape federal taxation but owe a lot at the state level.